See the actual EPS of 28 commercial banks; Nabil & Nepal Bank leading the commercial bank’s industry with EPS of Rs 58.54 & 40.03 respectively

All the commercial banks have published their financial reports for the fourth quarter of the FY 2073/74. From slight look, we can trace out that Earning per Share (EPS) of most of the banks has declined due to rise in its capital. The paid-up capital as reported by them seems to be understated as many of the banks have not mentioned ongoing right shares and bonus share which are yet to be listed in Nepal Stock Exchange (NEPSE). Due to these hindrances, major fundamental indicators which are highly analyzed by the Nepalese investors like Earning per Share (EPS) and Net worth per share exhibits the misleading information. Thus, we have analyzed with actual paid up capital as per NEPSE’s listed capital to calculate actual EPS of all commercial banks. Below table consists of major fundamental factors and ratios: From the above table, Nabil Bank Limited (NABIL) leads the whole commercial banks industry with an EPS of Rs 58.54 followed by Nepal Bank Limited (NBL) with Rs 40.03. Civil Bank Limited (CBL) stood at the bottom of the table with EPS of Rs 6.52 only. While calculating real EPS in above table, following additions to paid up capital of various banks are made:

• Preference shares worth Rs 5.45 arba of Agricultural Development Bank Limited (ADBL) is not considered.
• 33% right shares and Preference shares worth Rs 8 crore of Everest Bank Limited (EBL)
• 19% bonus shares of NMB Bank Limited (NMB)
• 28% bonus shares of Nepal SBI Bank Limited (SBI)
• 12% right shares of Machhapuchchhre Bank Limited (MBL)
• 80% right shares and 32% bonus shares of Nepal Bangladesh Bank Limited (NBB)
• 100% right shares and 18.29% bonus shares of Laxmi Bank Limited (LBL)

Sijan Bajracharya