( Rs in ' 000 ) S.N. Particulars This Quarter End Chaitra 2070 (13 APR, 2014) Last Quarter End Poush 2070 (14 JAN, 2014) Corresponding Previous Year Quarter End Chaitra 2069 (13 APR, 2013) 1 Total Capital and Liabilities (1.1 to 1.7) 7,932,848 7,792,343 6,850,663 1.1 Paid Up Capital 827,394 827,394 797,818 1.2 Reserve and Surplus 155,717 145,546 70,629 1.3 Debenture and Bond 1.4 Borrowings 870,000 590,000 310,000 1.5 Deposits (a+b) 5,969,048 6,095,924 5,554,000 a. Domestic Currency 5,957,904 6,085,619 5,539,903 b. Foreign Currency 11,144 10,306 14,097 1.6 Income Tax Liability (6,675) 9,115 (7,089) 1.7 Other Liabilities 117,364 124,363 125,305 2 Total Assets (2.1 to 2.7) 7,932,848 7,792,343 6,850,663 2.1 Cash and Bank Balance 212,409 253,642 385,799 2.2 Money at Call and Short Notice 2,495,493 1,995,970 1,027,506 2.3 Investments 574,673 574,983 560,141 2.4 Loans and Advances 4,346,637 4,474,320 4,555,519 a. Real Estate Loan 547,613 597,665 733,599 1. Residential Real Estate Loan (except Personal Home Loan Upto 10 Million) 33,961 46,238 52,030 2. Business Complex & residential Apartment Construction Loan) 149,925 198,432 105,526 3. Income generating Commercial Comples Loan 47,933 47,647 63,802 4. Other Real Estate loan (Including Land purchase & 315,794 305,348 512,242 b. Personal Home Loan of Rs 10 Million or Less 367,707 344,636 367,955 c. Margin Type Loan 5,323 29,501 28,168 d. Term Loan 1,232,364 1,227,819 933,499 e. Overdraft Loan/TR Loan/WC Loan 1,195,179 1,270,903 1,888,990 f. Others 998,453 1,003,795 603,307 2.5 Fixed Assets Net 124,985 128,066 142,367 2.6 Non Banking Assets ‐ ‐ ‐ 2.7 Other Assets 178,650 365,362 179,331 3 Profit and Loss Account This Quarter End Chaitra 2070 (13 APR, 2014) Last Quarter End Poush 2070 (14 JAN, 2014) Corresponding Previous Year Quarter End Chaitra 2069 (13 APR, 2013) 3.1 Interest Income 482,136 323,740 489,817 3.2 Interest Expense 286,055 193,239 323,475 196,081 130,501 166,342 3.3 Fees, Commission and Discount 5,698 3,999 6,316 3.4 Other Operating Income 18,845 12,131 21,362 3.5 Foreign Exchange Gain/Loss (Net) 8,079 7,553 3,691 A. Net Interest Income (3.1 ‐ 3.2) Ace Development Bank Limited Narayan Chaur, Naxal, Kathmandu Phone # 4441110,4411760 Fax # 4445554 Email: Info@ace.com.np, Website : http//www.ace.com.np Unaudited Financial Results (Quarterly) As at 3rd Quarter ( 30/12/2070) of the Fiscal Year 2070/2071
228,702 154,185 197,712 3.6 Staff Expenses 41,597 28,959 39,921 3.7 Other Operating Expenses 56,509 36,864 56,985 130,597 88,362 100,807 3.8 Provision for Possible Losses / NBA 81,296 49,032 144,879 49,301 39,330 (44,073) 3.9 Non Operating Income/Expenses (Net) 565 450 543 3.10 Write Back of Provision for Possible Loss 30,502 20,188 92,362 80,367 59,968 48,832 3.11 Extraordinary Income/Expenses (Net) 4,417 74,747 75,950 59,968 (25,915) 3.12 Provision for Staff Bonus 6,905 5,452 ‐ 3.13 Provision for Tax 20,714 16,355 ‐ 48,332 38,161 (25,915) 4 Ratios This Quarter End Chaitra 2070 (13 APR, 2014) Last Quarter End Poush 2070 (14 JAN, 2014) Corresponding Previous Year Quarter End Chaitra 2069 (13 APR, 2013) 4.1 Capital Fund to RWA 15.07% 13.84% 13.37% 4.2 Non Performing Loan (NPL) to Total Loan 5.67% 4.61% 5.32% 4.3 Total Loan Loss Provision to Total NPL 85.59% 92.61% 62.55% 4.4 Cost Of Funds 5.84% 5.91% 7.12% 4.5 CD Ratio (Calculated as per NRB Directives) 66.47% 66.88% 74.25% 4.6 Base Rate 8.18% 8.52% 4.7 Average Interest Rate Spread (Calculated as per NRB Directi 5.53% 6.32%
* Above figures are subject to change if directed by the regulators and /or external auditors, * Loans & Advances are disclosed net of loan loss provision
B. Total Operating Income (A.+3.3+3.4+3.5) C. Operating Profit Before Provision (B.‐3.6‐3.7) D. Operating Profit (C. ‐3.8) E. Profit from Regular Activities (D.+3.9+3.10) F. Profit before Bonus and Taxes (E.‐3.11) G. Net Profit/Loss (F. ‐3.12‐3.13)
Publication of information as required by Securities Regulation and Issuance
Rules 2065 (Related to Sub Rule (2) of Rule 22), Annex 14
3rd Quarter of Financial Year 2070/71
1. Financial Statements
a. Unaudited balance sheet and Profit & loss of 3
rdQuarter of FY 2070/71 have been
published along with this report.
b. Key Financial Indicators
Earnings Per Share (Annualised) NRs.7.79 Market Value Per Share NRs.183 Price Earnings Ratio (PE Ratio) 23.50 Liquidity 36.74% Net Worth Per Share NRs. 118.822. Management Analysis:
a. There have been changes in the reserves, profitability and liquidity situation during the period. Reserve has been increased due to the increment in profitability. b. Ace’s focus will be to recover from the defaulting borrowers as well as to increase the clientele base substantially by offering new products.3. Related Party Disclosure
The development bank invested Rs.70 million in equity share capital of Ace Capital Ltd in FY 2067/68. The development bank entered into a management contract with Ace Capital Ltd. for looking after the entire management of the subsidiary for a monthly fee of Rs.250 thousand. Employees from the development bank are deputed in various positions of the Ace Capital Ltd. The outstanding balance of deposits of Ace Capital with the development bank was Rs. 22.22 million as on the end of Chaitra, 2070 and interest on these deposits, amounting to Rs.2.14 million was paid to it by the third quarter end of this FY. Ace capital ltd is appointed as registrar to share (RTS) of Ace development Bank Ltdwith an annual fee of Rs.120 thousand. All transactions between the development bank and Ace
capital Ltd. are done in arm’s length price.
4. Details of Legal Action:
During the review period: a. Case filed by or against the development bank during the period: The development bank has filed a case in district court and debt recovery tribunal against the borrower/related persons during the loan recovery process. A case is pending in the Supreme Court and revenue tribunal which is related to income tax assessment by Inland Revenue Department.b. Case relating to disobedience of the prevailing laws or commission of the criminal offence filed by or against the promoters or directors of the Institution.
No such information has been received by the development bank. c. Case relating to the commission of financial crime filed against any promoter or director. No such information has been received by the development bank.
5. Details of the Share Transaction
a. Management view: Market price of the institution’s shares listed in the Nepal Stock Exchange Limited is determined by the market factors. Therefore, management is neutral on ruling the share price of the institution. However, the institution discloses the material information relevant to the market as per the prevailing regulations and as and when required. b. Maximum, minimum and last share price of the institution including total number of the shares traded and transaction day: Maximum Price : Rs. 257 Minimum Price : Rs. 175 Closing Price : Rs. 183 No. of Trades : 147 Days of Trading : 34 Days6. Problems and Challenges:
a. Internal Problems & Challenges i. Pressure on cost of operation due to the high inflation in the economy. ii. Retention of human resources in a highly competitive market. Strategy to manage the internal problems and challenges: i. Institution has adopted a practice for optimum & more economical use of resources.ii. Human resource management trainings as well as motivational programs are in place to enhance the productivity of employees and to retain best talents.
b. External Problems & Challenges:
i. Worsening political situation of the country.
ii. Economic crisis to the majority of customers in the business.
Strategy to manage the external problems and challenges:
i. Management is closely monitoring the existing political economic situation of the country and reshaping the strategy accordingly.
ii. We are more concerned about sector wise Exposure diversification.
7. Corporate Governance:
Corporate governance is the focal point of the institution. The institution has taken the following steps to strengthen the corporate governance:
a. The Board of directors of the institution is responsible and accountable to the shareholders of the institution. The board formulates the policy and guides the management to execute those policies.
b. The Audit Committee headed by the non‐executive director meets quarterly or as and when required and review the reports from external and internal auditors and provides the feedback to the board of directors as required.
c. The Risk Management Committee headed by the non‐ executive director meets regularly and evaluates the quality of the risk assets portfolio of the institution and suggests board of directors as required.
d. The institution has Asset and Liability Committee (ALCO), HR management & services committee and others sub‐committees as required. These setups meet regularly on the respective issues and suggest/recommend the designated authority accordingly.
e. The Annual General Meeting is the annual forum when all the stakeholders meet and communicate with each other regarding the various aspects of the institution.
8. Disclosure of the Acting Chief Executive Officer:
I am personally responsible for the correctness of the facts and figures disclosed in this report. Also, to the extent of my knowledge, facts and figures disclosed in this report are correct and comprehensive and all the material information relevant to take proper investment decision for the investors are disclosed properly in this statement.
