Nepal Credit & Commerce Bank Limited Condensed Statement of As on Ashwin end 2076 000 ‘Gach and Cash Equivalents 3,757,385 4,046,885 Dus from Nepal Rastra Bank 4,852,664 6,808,533 Placement with Bank and Financial Inaiulions 2,456,087 4,745,513 Derivative Financial Instruments é 78,155 Other Trading Ascots zi : Lears and Advances to BFle 2480)085 2273535 Loans and Advances to Customers 63,208,042 64,131,877 Investment Secures 7,800,488 8,868,434 ‘Current Tax Assets z E [investment in Subsidiaries x a Z ([Govestmentin Associates 5, 48,352 34,500. [investment Property + 943,339 890,709 | Property and Equipment ‘ . 897,843 883,157 ‘Goodwit and Intangible Assets 71,986 12,543 Deferred Tax Assets 328,893 325,803 [Lotter Assets 1308.254 3,137,024 Tahsin ee 5 She a7: | Due to Bank and Financial Insitutions EN 7.182.910 6,352,630 [Due to Nepat Rastra Bank 742,300 1,244,464 Derivative Financial instruments 6.490 z Deposits from Customers : 66,023,560 67,035,624 Borrowings : : Curent Tax Labities 747 608 2a77 Provisions A 70988 70.937 Deferred Tax Liabiltios - = [Other Liabilities 1,026,333. 985,485 | {Debt Seatrifes iosued . = = Equity Share Capital 8.133.041 7,018,587, Share Premiuea 169,861 172.466 Retained Eamings 1721,168 473,777 Reserves 2,769,320 | Total Equity attibatable to Equity Holders | Non Gentong Inerest[interest income Condensed Statement of Profit or Loss For the Quarter ended Ashwin end 2076. en I ero ‘Quarter (YT 2,169,377. Previous Year bette 2.019.971 ts Quarte 2,019,971 Rs. in 000 a cee [interest Expense 4,382,276 4,227,140 4,227,140, Net inierest income SaaS | Fee and Commission income 193,626 Fee and Commission Expense 5632 | et Fee and Commission income Net interest, Fee and Gommisson income Net Trading Income Other Operating inoome cay pee ae 309,981 ‘Sperating Pet [ Personnel Expenses Other Operating Exposes 119233 Depreciation & Anrizaion 31.046, {Non Operating Inoome Non Operating Expense “Profit Before income Tax Tee Po ae 559 Income Tax Expense ‘ : i : z | eurrent Tax are 128725 e212 162612 Deferred Tax < ProfitiLoss) for the Period _ eg AEB 7A7 aera) ‘Condensed Statement of Other Comprehensive : = | Profit Loss) forthe Period 428,747] 428,747 |_Other Comprehensive income 47,210) (7,210) 1,545, 1,545, ‘Total Comprehensive income yg ws z Basic Earnings por Share : 27.04 2 27.04 | Eauty-helders of to Bank: 383,133 Non-Contoing intregt | Total TI 339,439) et Capital fund to RWA Ratios as per NRB Directive Sees (TD) Mee cg een nena om | [Non-performing loan (NPL) fo total joan 287% 3.69% | Total loan loss provision to Total NPL. 126.44%, 114.82%, Gost of Funds 753% 7.88% Credit to Deposit Ratio 77.86% 78.98% Base Rate 10.77% 11.45% Interest Rate Spread 507% 4aNotes: 41. Above financial statements are prepared in accordance with Nepal Financial Reporting Standards (NFRS) and cortain Carve-outs issued by the Institute of Chartored Accountants of ‘Nepal (ICAN).These figures may vary atthe instance of external auditors and regulators. 2. Personnel Expenses include employee's bonus provision and amortization of prepaid benefit of subsidized staff loans provided as per Employee Bylaws of the Bank. 3. Inferest income on loan and advances have been recognized on accrual basis subject to Interest Income Recognition Guidelines issued by NRB. 4, Loan and Advances include accrued interest receivables and staff loan provided as per Employee Bylaws of the Bank; and are presented net of impairment charges. Impairment Joss on joan and advances has been measured at the higher of amount derived as per noes prescribed by Nepal Rastra Bank for loan loss provision and amount determined ag pat paragraph 63 of Nepal Accounting Standard (NAS) 38. . ‘5. Investment in listed sharos and mutual funds are classified as Available For Sale andipSboen ‘measured at Fair Value through Other Comprehensive income, eee eee aioe emer wherever necessary. 7. Detail interim report is also available n the Bank’s website: www.neckank.comnp Statement of Distributable Profitor Loss ‘As on Quarter Ended Ashwin 2676 Rs. in 000 4 2 : a 4.4 Profit required tobe appropriated to slatutor/teserve (71,023) ‘a, General reserve = (68,068) Capital redemption reserve: e ‘¢. Exchange fluctuation fund 4 <6. Corporate social responsibil (2,954) ‘6. Employees taining fund 4. Others aN a 4.2 Profit required to be, Regulatory Reserve (166.479) ‘Transfer to Reserve (166,418) . Transfer for latory Reserve i eee inet ee ta ern tise ence eee Peete et cee ries First Quarter Report - F/Y 2076/77 4. Financial Statements: Seta Sel ‘a. Quarterly Financial Report including Balance Sheet and Profit & Loss Account; published along with this report b, Transactions held between related parties: “There is no transaction held between related parties during this quarter. c. Major Financial Indicator Earnings per share [NPR 16.74 [Net Liquid assois to total deposit | Price eamings ratio | 1.71 times _| (Liquidity ratio) | ‘Net worth per share | NPR 157.30_| Assets value por share2. Management Analysis: a, Details relating to change in the Bank's reserve, income and liquidity in the quarter and its main reason: “The change in the Banks reserve, income and liquidity are as presented in the first quarter financial statement ending on Ashwin end 2076.The liquidity position of the Bank is at ‘comfortable level throughout the quarter. b. Management's analytical details regarding future business plan: The Bank has adopted strategy to increase overall business growth in terms of both loan and deposit to provide the innovative products and services to customers; and to ‘expand branch networks/extension counters in new virgin areas. In addition, NPA and NBA ‘management shai! continue to be the top priority of the management of the Bank. ¢. Analytical details of the incidents that may have major impact on reserves, profit or cash flow (if any) based on previous experien There have been no incidents /eoncitions which may have Impact on the bank's position, profit and cash flow. 3, Legal Proceedings: a. Lawsuits filed bylagainst the Bank: . No stich information has been received except for cases filed in DRT for recovery of loans ‘and cases related to the income tax. rn b.Lawsuits filed bylagainst the promotersidirectors relating to disobedieneg oh prevailing law or eriminal offense: No such information has been received yet. iy c. Lawsuits filed against promoters/directors for financial offense: a> No such information has beon received yet 7 4. Analysis of stock performance: ed a Management view on securities transactions ofthe bank at seourtes market: ‘Since the share prices are determined by open market. peraons ep ‘Stock Exchange Under th supenisin of Secures Board ef Nepal, managereh.i no commant en ne sane. 'b. Maximum, minimum and closing share price of th ‘luding total transacted number of shares and transacted day during the quar re as follows: (as published jin the Nepal Stock Exchange website) rm, ; Maximum share price: “NR, 258/- z Minimum shere pice: “NNER, 1917- Closing share price: Ny NPRM96- Total no. of transaction dae: ” 62 days Total no. of transacted shares: 1,636,159 shares Tel oe 4,523 5. Problems, Challenges and Stratégie Internal 4 * Increase in operational «Increase in operating cot increase in number of branches * Challenges on manayement of non-banking assets and non performing accounts, External ~*~ imited market, * Wideningttrade deficit + Non spending of government expenslture as budgoted + Imbalanced ato of growth between deposit collection and credit expansion. Bank jies to mitigate problem and challenges: + Effozive asset and lability management + Cost rationalization approach fo menage the cost {Prudent risk management policies and practices + Ination of stringent recovery process 6. Corporate Governance: ‘The Bank is committed to upholding good corporate governances practices with stict compliance with laws, rules and regulations. Risk Management. compliance, control and fue functions are accorded due prirty in the bank. The Bank has Audit Commitee, Risk Management Committee, Asset and Liability Committee (ALCO), AML Committee, Research & Development Committee and other Sub-Committees to ensure high level of corporate governance, There are numberof policies and clear procedures in place to ensure high level ot governance and transparency within the Bank: 7. Declaration by CEO about the Truthfuiness of Financials/Information: |, CEO of the bank, take responsibility on the truthfulness of information and particulars disclosed in this report. Further | declare that the particulars mentioned in this report, to the best of my knowledge, are true, fir and complete and have not knowingly concealed any partculars, notices and information tothe invertors to take informed decision