Agricultural Development Bank & Nepal Bank exhibit more staff expenses among all commercial banks: A study
Mon, Jul 4, 2016 4:44 PM on Latest, Featured, Company Analysis, Stock Market,
ShareSansar.com have compared the staff expenses of commercial banks to its paid up capital, revenue, total operating income and total expenses. (The study also includes staff bonus while studying staff expenses in some heading.)
The analysis shows that government owned commercial banks have more staff expense than other commercial banks. Agriculture Development Bank Limited (ADBL) and Nepal Bank Limited (NBL) has the highest staff expenses.
Sanima Bank Limited (SANIMA), Civil Bank Limited (CIVIL), Prime Commercial Bank Limited (PRIME) and Lumbini Bank Limited (LUBL) has the lowest staff expenses.
Number of Branch, number of Staff and business expansion is also the factor of increment of staff expenses.
2. Staff Expenses plus Staff Bonus Compared to Total expenses:
Out of total expenses, staff expenses including bonus covers more than 50% in all the commercial banks. Staff expense of ADBL covers 84.50% of the total expense of the bank whereas staff expense of NBL covers 79.94% of the total expenses. The staff expense of CIVIL contributes 50.07% of the total expenses which is the lowest out of all the commercial banks.
3. Total Expenses (Excluding Interest Expenses) Compared to Revenue:
Total expense (excluding the interest expense) covers 29.23 percent in average of the total revenue of commercial banks. The total expense of NBL covers 51.54% of its total revenue which is the highest out of all commercial banks. The total expense Prime Commercial Bank Limited (PCBL) covers 15.51% of its total revenue which is lowest when compared with other commercial banks. ADBL, Standard Chartered Bank Limited (SCB), Himalayan Bank (HBL) and Prabhu Bank Limited (PRVU) total expense covers more than 40% of its total revenue.
5.Staff Expenses By Capital: The staff expense of Nepal Bank covers 26.5% of the total paid up capital. Staff expense of Everest Bank Limited covers 23.4% of its total paid up capital. Staff expense of eleven bank covers less than 10 percent of total paid up capital.
- Staff Expenses (Excluding Bonus) Compared to Total operating Income: The average staff expenses of commercial bank is 20.12 percent excluding the staff bonus. The above data shows that the government bank staff expense is more than 40 percent of total operating income. Except ADBL and NBL, staff expense of all the banks is less than 30 percent. If ADBL and NBL are excluded than the average staff expense of all the commercial bank will stand at Rs 17.43 percent.
2. Staff Expenses plus Staff Bonus Compared to Total expenses:
Out of total expenses, staff expenses including bonus covers more than 50% in all the commercial banks. Staff expense of ADBL covers 84.50% of the total expense of the bank whereas staff expense of NBL covers 79.94% of the total expenses. The staff expense of CIVIL contributes 50.07% of the total expenses which is the lowest out of all the commercial banks.
3. Total Expenses (Excluding Interest Expenses) Compared to Revenue:
Total expense (excluding the interest expense) covers 29.23 percent in average of the total revenue of commercial banks. The total expense of NBL covers 51.54% of its total revenue which is the highest out of all commercial banks. The total expense Prime Commercial Bank Limited (PCBL) covers 15.51% of its total revenue which is lowest when compared with other commercial banks. ADBL, Standard Chartered Bank Limited (SCB), Himalayan Bank (HBL) and Prabhu Bank Limited (PRVU) total expense covers more than 40% of its total revenue.
- Staff Expenses Compared to total Expenses: The average staff expense (excluding staff bonus) under this heading is 52.35%. Staff expense of ADBL covers 83.76% and NBL covers 78.03% out of their total expenses which is the highest. Government owned bank has such high staff expenses due to huge number of staffs and staff benefits facilities.
5.Staff Expenses By Capital: The staff expense of Nepal Bank covers 26.5% of the total paid up capital. Staff expense of Everest Bank Limited covers 23.4% of its total paid up capital. Staff expense of eleven bank covers less than 10 percent of total paid up capital.
