NRBC Bank profit jumps 27% on lower provisions

NRB Commercial (NRBC) Bank has shown a more-than-expected financial performance in the first quarter of the year 2023, as the lender reported a 27 per cent year-on-year surge in profit in the just-concluded quarter.

As per its unaudited financial statement, the listed lender’s net profit jumped to Tk 81.12 crore in the January-March quarter of the current year from the profit of Tk 65.95 crore in the same quarter last year.

Besides, this year’s first quarterly profit was the highest over four years, as per data available on the Dhaka Stock Exchange (DSE).

The private commercial lender made an excellent earnings growth in the first quarter of 2023 due mainly to lower provisions, and good returns on investments, as per its financial report.

It should also be noted here that the bank has been making a steady profit growth since 2029.

The lender’s first quarterly net profit in 2019 was Tk 16.46 crore, which had reached Tk 19.66 crore in Q1 of 2020, and the January-March profit of the bank in 2021 was Tk 31.56 crore.

Loan loss provision and provision for unrealised loss of the listed bank decreased by Tk 29.53 crore and Tk 16.84 crore, respectively, in the January-March quarter of 2023, compared to those at the end of December 31 last year, as per its financial report.

The Bank’s consolidated earnings per share (EPS) rose to Tk 1.02 for the January-March quarter of 2023 from Tk 0.80 for the corresponding quarter of 2022.

The private commercial bank’s solo basis EPS for three months that ending on March 31, 2023, also increased to Tk 1 from Tk 0.70 at the end of the same period last year.

The consolidated size of the bank’s balance sheet (including off-balance sheet) stood at Tk 25,686 crore as on March this year, which was Tk 25,639 crore till March last year.

The bank’s consolidated net asset value (NAV) per share stood at Tk 17.78 as on March 31 this year, which was Tk 16.73 till December 31, 2022.

Its consolidated NAV at the end of March 2023 stood at Tk 1410.24 crore, which was Tk 1327.03 crore at the end of the same period last year.

Meanwhile, the bank’s solo NAV was around Tk 1375.19 crore as on March this year, which was Tk 1293.53 crore till December last year.

The bank’s total loans disbursed till March this year stood at Tk 13,764 crore, which was Tk 11,864 crore till March of 2022.

Moreover, the lender’s deposit collection jumped by 17.64 per cent year-on-year, with the outlay reaching Tk 15,833 crore till March of 2023, which was Tk 13,454 crore at the end of the first quarter of 2022.

Listed in 2021, NRBC Bank belongs to the DSE’s category ‘A’.

Using the cutting-edge technology, the bank is currently providing banking services through 103 branches, and 1500 sub-branches, agent points and ATM booths across the country.

With a paid-up capital of Tk 792 crore, the lender has a market capitalisation of Tk 1395 crore.

The company declared 7.5 per cent cash and 7.5 per cent stock dividends to its shareholders for the year ended in December 2022.

Sponsor-directors held 73.49 per cent of the company’s total shares, while institutional investors owned 2.98 per cent, and general investors 23.53 per cent till April 30, 2023.