NIC Asia Bank (NICA) has unveiled its third-quarter report for the ongoing fiscal year, revealing a substantial decline in net profit during the period.
Amidst challenging conditions, NIC Asia Bank recorded a net profit of Rs 1.91 billion, reflecting a sharp decline of 52.31 percent compared to the corresponding period of the previous fiscal year, where it stood at Rs 4.01 billion.
Several factors contributed to this downturn, including a notable decrease in net interest income and an uptick in non-performing loans.
During the review period, the bank’s net interest income witnessed a downturn of 9.95 percent, while net fee and commission income experienced a decline of 13.50 percent. Similarly, the total operating income registered a decrease of 9.17 percent, accompanied by a significant 37.31 percent drop in operating profit. Additionally, the bank’s bad debt ratio surged from 0.85 percent to 3.08 percent during this period, further exacerbating financial challenges.
NIC Asia Bank reported a distributable loss of Rs 1.72 billion, reflecting the magnitude of the obstacles encountered.
Despite these hurdles, the bank managed to sustain an Earnings Per Share (EPS) of Rs 17.12, maintaining a Price/Earnings (P/E) ratio of 22.85 times and a commendable net worth per share of Rs 205.47.
With a paid-up capital amounting to Rs 14.91 billion and a robust reserve fund totaling Rs 15.73 billion, NIC Asia Bank continued to play a pivotal role in the financial landscape. Notably, the bank accumulated deposits totaling Rs 327.16 billion and extended loans amounting to Rs 277.18 billion during the period, reaffirming its commitment to fostering economic growth and stability.
As NIC Asia Bank navigates through the challenges, its resilience and strategic initiatives will be pivotal in charting a path towards sustained profitability and resilience in the face of evolving market dynamics.
