NIC Asia Bank (NICA) recently released its third-quarter report for the ongoing fiscal year, highlighting a significant decrease in net profit during the period.
In the review period, NIC Asia Bank recorded a net profit of Rs 1.91 billion, marking a sharp decline of 52.31 percent compared to the Rs 4.01 billion reported in the corresponding period of the previous fiscal year.
The decline in net profit can be attributed to several factors, including a decrease in net interest income and an increase in non-performing loans.
During the review period, the bank’s net interest income decreased by 9.95 percent, while net fee and commission income saw a decline of 13.50 percent. Similarly, the total operating income witnessed a decrease of 9.17 percent, and the operating profit declined by 37.31 percent. Additionally, the bank’s bad debt increased from 0.85 percent to 3.08 percent during this period.
NIC Asia Bank reported a distributable loss of Rs 1.72 billion.
Despite the challenges, the bank managed to maintain an Earnings Per Share (EPS) of Rs 17.12, a Price/Earnings (P/E) ratio of 22.85 times, and a net worth per share of Rs 205.47.
With a paid-up capital of Rs 14.91 billion and a reserve fund of Rs 15.73 billion, NIC Asia Bank collected deposits amounting to Rs 327.16 billion and extended loans totaling Rs 277.18 billion during the period.
