Know which commercial bank is cost efficient & which one is costlier (based on Q3 of FY 2073/74)
Sun, Jun 25, 2017 4:15 PM on Latest, Exclusive, Financial Analysis, Featured, Company Analysis, Stock Market,
Major fundamental indicators of companies like Earnings per Share (EPS), Dividend per share (DPS), Networth per share, Return on Equity (ROE) and Return on Assets (ROA) are not sufficient to find out the true financial position of the company since they do not provide transparent data on the expenses. Therefore, by analyzing major expenses of the banks (i.e. staff expenses) to its paid up capital, revenue, total operating income and total expenses are compared to know which commercial bank is more cost efficient and which one is costlier. (The study also includes staff bonus in while studying staff expenses in some headings.)
The analysis shows that all three government-owned commercial banks have more staff expenses than any other commercial banks. Agricultural Development Bank Limited , Nepal Bank Limited and Rastriya Banijya Bank Limited have the highest staff expenses. Number of branches, number of staffs and business expansion are also some important factors responsible for increased staff expenses. On the other hand, Nepal Investment Bank as lowest staff expenses which is the main reasons behind stable growth in profit of the company though there is huge increment in the paid up capital, number of branches, number of staffs and business expansion.
- Staff Expenses as compared to Total Operating Income :
- Staff Expenses (and Bonus) as compared to Total Operating Income:
- Total Expenses (excluding Interest Expenses) in terms of total revenue:
- Staff Expenses to Total Expenses
- Staff Expenses in terms of Capital: