Unveiling Q4 2082/83: A Comprehensive Analysis of Leading Commercial Banks and Key Financial Insights

All 20 commercial banks have unveiled their financial reports for the fourth quarter of FY 2082/83, offering a fresh look into their performance during the twelve months. The disclosures present a deeper understanding of their profitability, capital strength, and overall business growth. This summary captures the major highlights and evolving trends in net earnings, capital adequacy ratios, and other essential financial indicators.

Net Profit:

In Q4 FY 2082/83, Nabil Bank Limited (NABIL) led Nepal’s commercial banks with the highest net profit of Rs. 7.90 Arba, followed by Kumari Bank Limited (KBL) with Rs. 7.38 Arba and Global IME Bank Limited (GBIME) with Rs. 6.22 Arba. Nabil Bank’s profit increased by 33.45% compared to Rs. 5.92 Arba in the corresponding period of the previous fiscal year.

Himalayan Bank Limited (HBL) recorded the highest profit growth among the commercial banks, with a staggering 1133.33% increase, rising to Rs. 1.48 Arba from Rs. 0.12 Arba. Kumari Bank Limited followed with a strong 307.73% growth, while Citizens Bank International Limited (CZBIL) posted a 63.28% increase.

On the other hand, Prabhu Bank Limited (PRVU) recorded the sharpest decline in net profit, dropping by 127.59% to a loss of Rs. 0.24 Arba from a profit of Rs. 0.87 Arba. Similarly, NIC Asia Bank Limited (NICA) saw its net profit decline by 104.65% year-on-year, reporting a profit of Rs. 0.18 Arba compared to a loss of Rs. 3.87 Arba in the previous year.

Paid-Up Capital:

Global IME Bank Limited (GBIME) holds the highest paid-up capital at Rs. 38.12 Arba, followed by Nepal Investment Mega Bank Limited (NIMB) at Rs. 34.13 Arba, and Nabil Bank Limited (NABIL) at Rs. 32.05 Arba. Laxmi Sunrise Bank Limited (LSL) and Kumari Bank Limited (KBL) follow with Rs. 26.78 Arba and Rs. 26.23 Arba, respectively.

Standard Chartered Bank Nepal Limited (SCB) has the lowest paid-up capital at Rs. 10.04 Arba, followed by Nepal SBI Bank Limited (SBI) at Rs. 11.33 Arba and Everest Bank Limited (EBL) at Rs. 13.72 Arba. The combined paid-up capital of the 20 commercial banks stands at Rs. 411.17 Arba, with an average of Rs. 20.56 Arba.

Reserve and Surplus:

The combined reserve and surplus of all commercial banks totaled Rs. 394.27 Arba, with the industry average standing at Rs. 19.71 Arba. Rastriya Banijya Bank Limited (RBBL) led with Rs. 40.44 Arba, followed by Nabil Bank Limited (NABIL) at Rs. 39.84 Arba and Nepal Investment Mega Bank Limited (NIMB) at Rs. 33.35 Arba.

Global IME Bank Limited (GBIME) ranked fourth with Rs. 31.95 Arba, while Nepal Bank Limited (NBL) stood fifth with Rs. 27.57 Arba. Machhapuchchhre Bank Limited (MBL) recorded the lowest reserve and surplus at Rs. 8.44 Arba, followed by Citizens Bank International Limited (CZBIL) at Rs. 9.38 Arba and Prabhu Bank Limited (PRVU) at Rs. 9.63 Arba.

Deposits From Customers:

Collectively, commercial banks gathered Rs. 7405.06 Arba in customer deposits, with seven banks surpassing the industry average of Rs. 370.25 Arba. Rastriya Banijya Bank Limited (RBBL) led with Rs. 686.14 Arba, followed by Global IME Bank Limited (GBIME) at Rs. 669.17 Arba and Nabil Bank Limited (NABIL) at Rs. 592.56 Arba.

Standard Chartered Bank Nepal Limited (SCB) recorded the lowest customer deposits at Rs. 147.68 Arba, followed by Nepal SBI Bank Limited (SBI) at Rs. 212.83 Arba and Machhapuchchhre Bank Limited (MBL) at Rs. 220.50 Arba.

Loans and Advances to Customers:

Nabil Bank Limited (NABIL) topped the list in loans and advances with Rs. 460.32 Arba, followed by Global IME Bank Limited (GBIME) with Rs. 439.35 Arba and Rastriya Banijya Bank Limited (RBBL) with Rs. 332.08 Arba. Nepal Investment Mega Bank Limited (NIMB) ranked fourth with Rs. 321.34 Arba.

Standard Chartered Bank Nepal Limited (SCB) had the smallest loan portfolio at Rs. 66.03 Arba, followed by Nepal SBI Bank Limited (SBI) at Rs. 146.08 Arba. The industry average loan disbursement stood at Rs. 247.17 Arba, with seven banks exceeding this average.

Net Interest Income:

Net interest income, a key indicator of core banking earnings, was highest at Nabil Bank Limited (NABIL), which recorded Rs. 17.00 Arba, followed by Global IME Bank Limited (GBIME) at Rs. 16.20 Arba. Nepal Investment Mega Bank Limited (NIMB) ranked third with Rs. 12.98 Arba.

Provisions (Impairment/Reversal):

Banks recorded a total impairment charge of Rs. 37.30 Arba, reflecting provisions made for potential loan losses and credit-related risks. Nepal Investment Mega Bank Limited (NIMB) posted the highest impairment charge at Rs. 6.19 Arba, followed by Prabhu Bank Limited (PRVU) at Rs. 4.94 Arba and Global IME Bank Limited (GBIME) at Rs. 4.78 Arba.

Major Indicators:

Earnings Per Share (EPS):

Everest Bank Limited (EBL) posted the highest annualized EPS at Rs. 36.95, followed by Nepal Bank Limited (NBL) at Rs. 30.63 and Rastriya Banijya Bank Limited (RBBL) at Rs. 29.14. Standard Chartered Bank Nepal Limited (SCB) ranked fourth with an EPS of Rs. 28.38, while Kumari Bank Limited (KBL) recorded Rs. 28.17.

The industry average EPS stood at Rs. 18.64, with ten banks above this benchmark. Prabhu Bank Limited (PRVU) posted the lowest EPS at a negative Rs. 1.02, followed by NIC Asia Bank Limited (NICA) at Rs. 1.22 and Himalayan Bank Limited (HBL) at Rs. 6.56.

Distributable Profit Per Share:  

Everest Bank Limited (EBL) reported the highest distributable profit per share at Rs. 38.32, followed by Sanima Bank Limited at Rs. 20.85 and Nabil Bank Limited (NABIL) at Rs. 19.10. Standard Chartered Bank Nepal Limited (SCB) ranked fourth at Rs. 19.04.

Four banks reported negative distributable profit per share, with NIC Asia Bank Limited (NICA) recording the lowest at negative Rs. 99.65, followed by Himalayan Bank Limited (HBL) at negative Rs. 43.58 and Prabhu Bank Limited (PRVU) at negative Rs. 26.82.

Net Worth Per Share:

Rastriya Banijya Bank Limited (RBBL) reported the highest net worth per share at Rs. 358.68, followed by Nepal Bank Limited (NBL) at Rs. 287.70 and Everest Bank Limited (EBL) at Rs. 256.47. Nabil Bank Limited (NABIL) ranked fourth with Rs. 247.28, while Agricultural Development Bank Limited (ADBL) stood fifth at Rs. 233.99.

Prabhu Bank Limited (PRVU) recorded the lowest net worth per share at Rs. 140.92, followed by Citizens Bank International Limited (CZBIL) at Rs. 160.51. The industry average stood at Rs. 206.32.

P/E Ratio:

Kumari Bank Limited (KBL) had the lowest P/E ratio at 7.46 times, followed by Nepal Bank Limited (NBL) at 8.54 times and Prime Commercial Bank Limited (PCBL) at 12.22 times. NIC Asia Bank Limited (NICA) recorded the highest P/E ratio at 266.90 times. This reflects quarter-end ratios, and current ratios may vary with recent stock prices.

Capital Adequacy Ratio (CAR):

Standard Chartered Bank Nepal Limited (SCB) reported the highest Capital Adequacy Ratio (CAR) at 18.13%, followed by Nepal SBI Bank Limited (SBI) at 13.74% and Nepal Bank Limited (NBL) at 13.66%. NIC Asia Bank Limited (NICA) reported the lowest CAR at 11.10%, while the industry average stood at 12.85%. This ratio indicates a bank’s capital position in relation to its risk-weighted assets.

Non-Performing Loan (NPL):

Everest Bank Limited (EBL) had the lowest NPL at 0.49%, while Prabhu Bank Limited (PRVU) reported the highest NPL at 15.55%. The industry average NPL stood at 5.44%.

Return on Assets (ROA) & Return on Equity (ROE):

Kumari Bank Limited (KBL) recorded the highest ROA at 16.49%, while Kumari Bank Limited (KBL) also reported the highest ROE at 1.51%. Everest Bank Limited (EBL) followed with an ROA of 14.41% and ROE of 1.32%.

Additional Indicators: Cost of Funds, CD Ratio, Base Rates, and Interest Spread

- Cost of Funds:  Nepal SBI Bank Limited (SBI) reported the highest cost of funds at 4.06%, while Standard Chartered Bank Nepal Limited (SCB) had the lowest at 2.53%.

- CD Ratio:  Prime Commercial Bank Limited (PCBL) recorded the highest CD ratio at 83.36%, followed by NMB Bank Limited (NMB) at 82.77%. Standard Chartered Bank Nepal Limited (SCB) had the lowest CD ratio at 47.24%.

- Base Rate:  NIC Asia Bank Limited (NICA) had the highest base rate at 5.83%, while Rastriya Banijya Bank Limited (RBBL) reported the lowest at 4.20%.

- Interest Spread:  Everest Bank Limited (EBL) recorded the highest interest spread at 4.31%, followed by Standard Chartered Bank Nepal Limited (SCB) at 3.77%. Himalayan Bank Limited (HBL) had the lowest spread at 2.83%.

The table below provides a detailed overview of these financial indicators across the 20 commercial banks for Q4 FY 2082/83.