JS Bank has stated an immense decline of 113% in profit for the fiscal year 2017 compared with the preceding financial year.
The reason figured out to be is mainly the administrative expenses and a little fall in non-interest income.
Per the financial result opened by JS Bank, it stated a profit of Rs. 973 the last year which is considerably less than the profit of 2016 – Rs. 2.076 billion.
The bank was able to generate Rs. 6.24 billion from revenues of interest in 2017 which last year was Rs. 5.72 billion. This turned up to a growth of 9%. Moving to non-interest income, it fell to Rs. 4.05 billion as associated with 2016’s number of Rs. 4.86 billion.
The administrative expense of the bank increased considerably to Rs. 8.25 billion in the year 2017, whereas it was reported to be Rs. 6.74 billion in 2016, an increase of 1.52 billion in the balance sheet which paved the way to negative impact on the bank’s profitability.
Coming to the EPS of JS Bank, it fell to Rs. 0.74 from Rs. 1.77. The bank though opened the dividends of 12% on preference share.
The overall revenue reported by the bank was Rs. 9.96 billion in 2017 which was Rs. 10.23 billion in the preceding year, showing a fall of 2.7%.
The fall in revenue and profit, as indicated was the result of the cut in securities’ capital gain and rise in operating expenses for the launch of new developments in financial reports of the bank.