See the Exclusive Q3 report of Commercial banks; of FY 2074/75. All 28 commercial banks have published their third quarter report. Most of banks have increased net profit as compare to corresponding quarter of previous year. It is clear that banks are unable to increased net profit in the ratio of capital increment.
Net profit of commercial banks is increased only 15% whereas paid up capital increased by 38% as compare to corresponding quarter of previous FY 2073/74. Reserve increased by 24%,Deposit increased by 16%, loan increased by 21%, etc.
This articles focuses on all major indicators like capital, reserve, net profit, operating profit, deposit, loan & advances, EPS, P/E, ROE, ROA, etc.
Analyzing based on Net Profit
In terms of net profit in Q3, Rastirya Banijya Bank stood at top position with 3.08 arba. Nepal investment bank with 2.83 arba, Nabil Bank with 2.79 arba Nepal bank with 2.56 arba & Everest bank stood with 1.80 arba stood at second, third, fourth & fifth position.
Civil Bank limited at last position with net profit of 35 crore.
In terms of Net profit increment, Nepal credit & commerce bank stood at top position with 225% growth. Civil bank with 127%, Century bank with 103%, Kumari Bank with 88% & Janata Bank with 51% growth remain at top 5 positions in terms of Net profit increment.
Prabhu Bank stood at last position with declined in net profit by 40%. Global IME bank, Mega bank, Nepal Bangladesh Bank, NIC Asia Bank, Machhapuchchhare bank & Prabhu bank have posted declined in net profit as compare to corresponding quarter of previous year.
In total Net profit of commercial bank is increased by 15% to 36.26 arba from previous third quarter.
Analyzing based on Paid up Capital
Agriculture Development bank stood at top position with paid up capital of 13.93 arba. Nepal investment bank with 10.64 arab, Global IME bank with 8.88 arba, Rastriya Banijya Bank with 8.58 arba & Laxmi Bank with 8.22 arba stood at second, third, fourth & fifth position.
Nepal Credit & commerce bank stood at last position with paid up capital 4.67 arba.
Mega Bank, Bank of Kathmandu, Civil bank, NMB Bank, Kumari Bank & Nepal credit & commerce bank are still unable to meet the capital requirement of 8 arba from NRB.
In terms of capital increment, Laxmi Bank stood at top position of 160% growth. Century commercial bank at second position with 119% growth & Standard chartered bank at third position with 114% growth in paid up capital.
Nepal Credit & commerce Bank & Rastirya Banijya Bank have no change in paid up capital in Q3 from previus Q3.
In total Paid up capital of commercial bank is increased by 38% to 2.25 kharba from previous third quarter.
Analyzing based on Reserve & Surplus
Nepal Investment bank has the highest Reserve of Rs. 10.92 arba. Agriculture Development bank with Rs.8.96 arba, Nabil Bank with Rs.8.82 aba, Nepal Bank with Rs.5.97 arba & Everest Bank with Rs.5.85 arba in top 5 positions among the 28 commercial bank in terms of Reserve & surplus amount.
Century Commercial Bank limited has lowest Reserve balance of Rs.1.21 arba & stands at last positions.
In terms of growth, Kumari Bank stands at top position with growth of 146% in Q3 comparing to previous corresponding quarter. Rastriya Banijaya Bank with 138%, Nepal Bank with 116%, Prabhu Bank with 80% & Mega Bank with 76% growth remain at top 5 positions in terms of Reseve & surplus growth.
Laxmi Bank stood at last position with negative growth of 50% in Q3from previous Q3.
In total Reserve & surplus of commercial bank is increased by 24% to 1.14 kharba from previous third quarter.
Analyzing based on Deposit collection & Loan & advance
Deposit collection of Rastriya Banijya bank is highest among the other commercial bank in Q3 with Rs.1.53 kharba. NIC Asia Bank with Rs. 1.33 kharba, Nepal investment bank with Rs.1.30 kharba, Nabil Bank with Rs. 1.23 kharba & Everest Bank with Rs. 1.06 kharba stand at top 5 positions in terms of deposit collection in third quarter of FY 2074/75.
Civil bank stood at last position with deposit of Rs.36.90 arba.
In terms of growth rate, NIC Asia Bank stood at top position with growth rate of 69% from Q3 of last corresponding quarter. Cenutry commercial bank & Kumari bank with growth rate of 59% & 58% in second & third position. Janata bank & Sanima Bank at fourth & fifth position with growth rate of 54% & 34.
Standard chartered bank at last position, deposit collection decreased by 12%.
In total deposit of commercial bank increased by 16% to Rs. 22.69 kharba from 19.52 kharba in the corresponding quarter of previous year.
Analyzing based on Loan & Advances
Nepal Investment Bank has disbursed highest amount of loan & advances in the third quarter. Nepal Investment Bank with Rs.1.18 kharba, Rastirya Banijya Bank with Rs. 1.12 kharba, NIC Asia Bank with Rs.1.08 kharba, Nabil Bank with Rs.1.05 kharba & Agriculture Development bank with Rs.94.89 arba in top 5 positions in terms of floating loan & advances.
Civil Bank stood at last position with Rs.34.92 arba in loan & advances.
In the analyzing period, Century commercial bank had increased loan & advances disbursement by 66% & stand at top position. Kumari Bank with 65%, NIC Asia Bank with 60% Janta Bank with 54% & Prime commercial bank with 37% remain at top 5 positions in terms of loan expansion.
Agriculture Development bank stood at last position with 7% loan expansion in the Q3.
In total Loan & advance disbursement of commercial bank is increased by 21% to 19.92 kharba from previous third quarter.
Analyzing based on Net Interest Income
Rastriya Banijya Bank has earned highest net interest income of Rs. 6.19 arba in third quarter of FY 2074/75. Nepal Bank, Nabil Bank, agriculture development bank, Nepal investment bank with net intrest income of Rs. 4.59 arba, Rs. 4.49 arba, Rs. 4.30 arba, Rs.4.11 arba respectively in top 5.
Civil bank limited stood at last position with net interest income of Rs.89.28 crore.
In terms of growth rate, Janata bank stood at top position with growth rate of 111%. Janta bank with 111%, kumari with 65%, Century bank with 59%, NIC Asia bank with 44% & Standard chartered bank with 44% stood at top five positions in terms of net interest income.
Nepal credit & commerce bank at last position with declined in net interest income of 35%.
In total Net interest income of commercial bank is increased by 16% to 67.51 arba from previous third quarter.
Analyzing based on Operating Profit
Nabil Bank has earned the highest operating profit in Q3 FY 2074/75. Nabil Bank with Rs.4.23 arba, Nepal Investment Bank with Rs.3.75 arba, Rastriya Banijya Bank with Rs.3.14 arba,Nepal Bank with Rs.3.12 arba & 2.79 arba stand at top 5 position in terms of earning operating profit in Q3.
Civil Bank stood at last position with Rs.17.46 crore operating profit.
In terms of growth rate, civil bank posted highest increased in operating profit of 482%. Nepal credit & commerce bank with 300%, Century commercial bank with 81%, Rastriya Banijya Bank with 73% & Kumari Bank with 68% surge in operating profit remain at top 5 positions.
Agriculture Development remains at last position with declined in operating profit by 64%.
In total Operating profit of commercial bank is increased by 15% to 45.71 arba from previous third quarter.
Analyzing based on Major indicators
Annualized Earning per share (EPS)
In terms of earning per share, Rastriya Banijya Bank, Nabil Bank, Nepal Bank, Nepal Investment bank & Everest Bank stand at top 5 positions with Rs.7.89, Rs.46.83 Rs.42.57 Rs.35.55 & Rs.29.96 of earning per share. Civil Bank limited stand at last positions with 8.91 EPS.
In total average EPS of commercial bank is Rs.21.49
Net worth per share
Agriculture Development Bank, Nabil Bank, Nepal Investment Bank, NMB Bank & Nepal Bank stands at top 5 with Rs. 210.53, Rs.210, Rs.202.58, Rs.187.21 & 174.31 in terms of net worth per share.
Century commercial bank stands at 28 positions with 115.04 net worth per share.
In total average Net worth per share of commercial bank is Rs.152.66
Price to Earning ratio (PE)
Mega Bank, Standard chartered Bank, Himalayan Bank, Everest Bank,& SBI Bank stands at top 5 position among 28 commercial bank. PE ratios are 47.96 times, 34.03 times, 26.63 times, 26.60 times & 24.06 times respectively. Nepal bank stands at last positions with PE ratio of 7.544 times.
The stock with less PE ratio is considered as better & vice versa by investors where as stock with high PE ratio is considered as better option by traders.
Return on Equity (ROE)
Rastirya Banijya Bank has highest ROE of 34.21%. Nepal bank with 26.88%, Nabil Bank with 24.03%, Everest Bank with 19.91%, & SBI Bank with 17.97% remains at top 5 positions.
Civil Bank stand at last position with ROE of 6.54%.
In total average ROE of commercial bank is 14.53%
Return on Assets (ROA)
In terms of ROA, Nepal bank stood at top positions with ROA of 3%. Standard chartered Bank with 2.64%,Nabil bank with 2.63%, Nepal investment bank with 2.35% & Rastriya Banijya Bank with 2.24% in top 5 positions in terms of ROA. Civil Bank stood at last position with 0.98% ROA.
In total average ROAof commercial bank is 1.71%
Credit & Deposit ratio (CD)
Mega bank, SBI Bank, Agriculture bank, Janata bank, Himalayan bank stand at top 5position with CD ratios of almost 79%. Mean they can’t further float loan, they need to collect more deposit in order to floating loan.
Rastriya Banijya Bank stood at last position with CD ratio of 73.62% which means there same space to float further loan.
In total average CD ratio of commercial bank is 77.38%
Cost of fund
Century commercial bank has highest cost of fund of 8.88%. Civil bank, Kumari bank, prime commercial bank & Nepal credit & commerce bank at top 5 with more than 8% cost of fund. Government own Nepal bank & Rastriya Banijya Bank has cost of fund less than 3%.
High cost means banks are collected deposit pay high interest & vice versa.
In total average cost of fund of commercial bank is 6.95%
Non -performing loan (NPL)
Nepal credit & commerce bank has highest NPL of 3.97%. Prabhu Bank with 3.90%, Civil bank with 3.74%, Agriculture development bank with 3.49% & Nepal bank with2.91% NPL stands at top 5.
Sanima Bank, SBI Bank, Standard chartered bank, etc have lowest NPL. They have NPL of 0.17%, 0.13%, 0.21%, etc.
High NPL indicates high risk in loan floated by banks & low NPL indicates low risk.
In total average NPL of commercial bank is 1.52%
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