Know EPS, ROE, ROA, P/E ratio & Net worth per share of National Level Development Banks?
ShareSansar September 2:
A total of 24 National Level Development Banks are functioning at present in Nepal.
Earnings per share allow us to compare different companies’ power to make profit per share.
Higher the EPS, ROE and ROA higher will be the performance of the company, in terms of the investor’s point of view.
As per the fourth quarter report of the fiscal year 2071/72, the annualized average EPS of the National Level Development Banks stands at NPR 26.86. Whereas, out of the 24 national level development banks only 4 national level development bank has EPS above an industry average.
During the review period, Rs 19.62 crore paid up capital, crises ridden Gurkha Development Bank Limited (GDBNL) had the highest annualized EPS i.e. NPR 150.72 but the reserve is at a loss of NPR 57.19 crore. Clean Energy Development Bank Limited (CEDBL) has the lowest annualized EPS of NPR 4.60. NIDC Development Bank Limited (NIDC) also has a high EPS of NPR 104.82.
The annualized average return on equity was 13.99 percent. Muktinath Bikas Bank Limited (MBBL) has the highest ROE of 23.72 percent. ROE is one of the best financial performance indicators of the company.
The annualized average return on assets was 2.11 percent. Gorkha Development Bank Limited (GDBNL) has the highest ROA among all the national development banks. It has an ROA of 15.20 percent.
The higher the P/E the more the market is willing today for the company’s earnings.The investors take the P/E ratio as a tool to measure the price of companies’ stock.
The average P/E ratio of the Development Bank industry was at 11.31 times during the review period.
Clean Energy Development Bank Limited (CEDBL) has the highest P/E ratio. It has a P/E ratio of 59.38 times.
Siddhartha Development Bank Limited (SDBL) has the lowest P/E ratio of 7. 89 times.
The net worth of any entity is the amount of money that will remain, if all the entity’s assets are sold and all the entity’s debts are paid.
In terms of net worth, NIDC Development Bank Limited (NIDC) has the highest net worth per share. Its net worth per share stands at NRP 735.94 whereas the net worth of crises ridden Gurkha Development Bank Limited (GDBNL) has the lowest net worth per share. Net worth per share of GDBNL is negative NRP 188.51.
| Name of Development bank | Earning Per Share annualized (Rs.) | P/E Ratio (times) based on Q4 book end prices | Net worth per share | Return on Assests (%) | Return on Equity (%) |
| Ace Development Bank Ltd. | 15.33 | 15.00 | 131.67 | 1.46% | 11.65% |
| Business Universal Development Bank Ltd. | 17.24 | 11.89 | 129.57 | 1.98% | 13.30% |
| Clean Energy Development Bank Ltd. | 4.60 | 59.38 | 116.48 | 0.50% | 3.95% |
| Deva Bikash Bank Ltd. | 19.50 | - | 113.93 | 1.98% | 17.11% |
| Fewa Bikas Bank Ltd. | 27.01 | - | 145.44 | 2.00% | 18.57% |
| Garima Bikas Bank Ltd. | 23.00 | 13.26 | 137.38 | 2.15% | 16.74% |
| Gorkha Development Bank (Nepal) Ltd. | 150.72 | - | (188.51) | 15.20% | -79.95% |
| Infrastructure Development Bank Ltd. | 13.13 | 13.56 | 124.78 | 1.72% | 10.52% |
| International Development Bank Ltd. | 12.10 | 15.29 | 120.55 | 1.39% | 10.04% |
| Jyoti Bikas Bank Ltd. | 11.52 | 14.23 | 118.51 | 1.29% | 9.72% |
| Kailash Bikash Bank Ltd. | 28.53 | 12.44 | 154.73 | 2.43% | 18.44% |
| Kasthamandap Development Bank Ltd. | 10.57 | 14.00 | 98.46 | 1.22% | 10.74% |
| Muktinath Bikas Bank Ltd. | 36.98 | 15.25 | 155.92 | 2.60% | 23.72% |
| NIDC Development Bank Ltd. | 104.82 | - | 735.94 | 8.72% | 14.24% |
| Reliable Development Bank Ltd. | 13.89 | 15.48 | 125.15 | 1.12% | 11.10% |
| Sangrila Development Bank Ltd. | 25.92 | - | 141.79 | 2.05% | 18.28% |
| Siddhartha Development Bank Ltd. | 25.10 | 7.89 | 131.06 | 2.05% | 19.15% |
| Society Development Bank Ltd. | 9.94 | 10.26 | 76.38 | 0.01% | 0.13% |
| Supreme Development Bank Ltd. | 9.31 | 16.87 | 127.55 | 1.33% | 7.30% |
| Tourism Development Bank Ltd. | 21.18 | - | 131.52 | 1.90% | 16.10% |
| Triveni Bikash Bank Ltd. | 15.12 | - | 127.22 | 1.36% | 11.89% |
| Vibor Bikas Bank Ltd. | 14.51 | 10.68 | 72.50 | 2.37% | 20.01% |
| Yeti Development Bank Ltd. | 7.75 | 17.16 | 73.20 | 1.08% | 10.59% |
*Apex Development Bank is yet to publish its 4th quarter report of last fiscal year
