JBBL Reports Decline in Q3 Net Profit and EPS Amidst Rising Impairment Charges

Jyoti Bikas Bank Limited (JBBL) has recently disclosed its unaudited financial report for the third quarter of fiscal year 2080/81, revealing a significant downturn in both net profit and Earnings Per Share (EPS). The bank’s net profit for this period plummeted to Rs. 15.24 Crores, marking a notable decrease of 24.40% compared to the corresponding quarter of the previous fiscal year, where it stood at Rs. 20.16 Crores. However, JBBL witnessed an uptick in net interest income, which surged to Rs. 1.07 Arba.

Despite a decrease of 2.64% in personnel expenses, JBBL encountered a substantial rise of 16.19% in impairment charges, resulting in a consequential 23.31% decline in operating profit. The bank’s EPS also demonstrated a downward trajectory, with the annualized EPS reported at Rs. 4.62 for the review period. Presently, JBBL’s price-earnings (P/E) ratio stands at 63.59 times, with the net worth per share reported at Rs. 134.20.

In terms of financial metrics, JBBL’s capital adequacy ratio stands at 12.40%, exhibiting a slight decrease from the previous fiscal year. Non-Performing Loans (NPL) saw an increase to 4.97% from 3.89% in the preceding fiscal year, while the cost of funds experienced a decline of 24.93%.

The release of the third-quarter financial report sheds light on JBBL’s financial performance, highlighting both challenges and areas of improvement within the banking sector.


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