Citizens Bank’s Financial Performance: Fourth Quarter Review and Stock Market Analysis
Citizens Bank, a prominent player in the Nepali banking sector, has released its unaudited financial statements for the fourth quarter of the last fiscal year. This report offers valuable insights for investors and those interested in stock market trends. Let’s delve into the key highlights and what they mean for financial analysts and the banking industry in Nepal.
The bank’s net profit saw a slight decrease, falling by 2.08% to NPR 1.2933 billion. In the previous year, Citizens Bank reported a net profit of NPR 1.3207 billion. This profitability shift is a crucial point for financial performance evaluation.
Despite the decrease in net profit, the bank’s net interest income experienced a significant increase, rising by 11.20% to NPR 6.3649 billion. However, the operating profit decreased by NPR 47.6 million, settling at NPR 2.09 billion. This disparity highlights the need for a deeper examination of the bank’s revenue streams and expense management.
A concerning trend is the rise in the bank’s non-performing loan (NPL) ratio, which increased by 0.84 percentage points, reaching 4.94%. This increase in bad debts warrants careful consideration. Additionally, the impairment charge moved from a negative NPR 1.75 billion to a negative NPR 2.62 billion. This impact on asset quality is an important indicator for any investment strategy.
During the reporting period, Citizens Bank collected deposits totaling NPR 211.50 billion and disbursed loans amounting to NPR 168.95 billion. Assessing loan portfolio performance is critical.
The bank’s paid-up capital stands at NPR 14.7690 billion, with a distributable profit of NPR 775.4 million. The bank has the capacity to distribute a 5.25% dividend. For shareholders, this is key.
The earnings per share (EPS) has decreased from NPR 9.30 to NPR 8.76. The net worth per share is NPR 155.42. Both metrics are essential for assessing the value of the stock and investment potential.
