Commercial Banks average CAGR stands at 30.50% (exclusive study based on 6 years data)

ShareSansar, August 26:

Unaudited  Fourth quarter reports of all the commercial banks are out.  Out of all commercial banks, Prabhu Bank Limited (PRVU) has the biggest profit growth rate this year.  Prabhu bank’s net profit rose by  530.55 percent in the last fiscal year, whereas Century Commercial  Bank Limited’s (CCBL) net profit rose by 196.69 percent in the last fiscal year compared to the net profit  fiscal year 2070/71. The net profit of Rastriya Banijya Bank (RBB) grew by 145.09 percent from  the previous year.

Here is the list of top 5 companies on the basis of growth in net profit compared to the previous fiscal year.

The compound annual growth rate (CAGR) is a useful measure of growth over multiple time periods. It can be thought of as the growth rate that gets you from the initial investment value to the ending investment value if you assume that the investment has been compounding over the time period.

Note: The CAGR of the Banks are calculated using the available data from the fiscal year 2066/67 till the fiscal year 2071/72.

Talking about the compound  annual growth rate (CAGR) of net profit, Civil Bank Limited (CBL) that has the highest compounded growth rate. CBL’s net profit  grew by 277.94 percent, whereas Machhachapuchhre Bank Limited (MBL) has a compound average net profit growth of 187.95 percent.

In our review period, the average CAGR of commercial banks stands at 30.50 percent. There are seven banks with above average CAGR.

Commercial Banks like Agriculture Development Bank Limited (ADBL), Nepal Credit and Commerce Bank (NCCB), Nepal Bangladesh Bank Limited (NBB), Bank of Kathmandu (BOK) and Grand Bank (GRAND) have negative compound annual growth rate.

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