Commercial Banks shows impressive results in FY 2072/73; able to achieve 68% growth
Fri, Aug 12, 2016 4:42 PM on Latest, Exclusive, Financial Analysis, Featured, Stock Market,
Recently, 21 commercial banks have published their fourth quarter financial reports as of FY 2072/73. We have compared the major indicators of these commercial banks. Average net profit of these commercial banks has increased by 67.98% and average deposits increased by 25% whereas the banks are able to increase their loan portfolio by 32.49%. Nepal Investment Bank Limited (NIB) and NMB Bank (NMB) seem to be financially strong compared to the remaining banks. NMB Bank has better performance in Percentage Change whereas Nepal Investment Bank is ahead in terms of amount.
The average increment in paid up capital is 28.62% i.e from Rs 3.16 arba to Rs 4.07 arba of all banks. NMB Bank has the highest paid up capital increment by 86.96% (merger with 4 financial institutions) followed by Prabhu Bank Limited with 83.28% (merger with Grand Bank Nepal and 25% right share). Paid up capital of 5 commercial banks remain unchanged up to the fourth quarter of the last fiscal year 2072/73 compared to the corresponding quarter of FY 2071/72. The highest paid up capital remains with NIB i.e 7.25 arba.
Mega Bank Nepal Limited has the highest percentage change in reserve and surplus with 373.51%growth. Financially sound NIB Bank has the highest reserve of Rs 10.62 arba and NABIL bank with 7.59 arba. The average reserve and surplus increment of commercial bank is 86.71% in Q4. Nepal Bank Ltd. has also positive result with Rs 38.47crore in reserve and surplus. Out of 21 commercial banks, reserve and surplus of 7 banks increased by more than 100% whereas Prabhu Bank’s reserve and surplus decreased by 23.16% in this Q4 compared to the last corresponding quarter ending.
NMB Bank came through all the commercial banks with 83.65% change in deposits. NMB Bank, Sunrise Bank, Mega Bank, Siddhartha Bank and Prabhu Bank Limited come under the rank of top five banks in terms of deposit collection. The deposits of these top five banks have increased by 40% which is credited to its merger and acquisition process with Bank and Financial Institutions (BFIs).The average deposits of all banks hover at 25.00%. Deposits of all banks, on average, have increased to Rs 57.94 arba from Rs 46.35 arba. Janata Bank Nepal Ltd. with 5 percent change has the lowest percentage change in terms of deposits.
In terms of percentage, NMB Bank tops the remaining 21 commercial banks in fund collection and mobilization whereas in amount Nepal Investment Bank is ahead with Rs 87 arba in Loan and Advances followed by Nabil Bank Ltd. with Rs 77.73 arba. The average loan and advances of the bank remains at 32.49%.NMB Bank, Sunrise Bank, Mega Bank, Siddhartha Bank and Prabhu Bank’s loan has exceeded by 50% in this Q4 compared to previous year corresponding quarter.
The average net interest income of 21 commercial banks remains at 34.03%. NMB Bank’s net interest income is twice the net interest income of Sanima Bank Limited which endures the second position in the list. Nepal Bank has the highest amount of net interest income of Rs 4.69 arba with Nepal Investment Bank as the supporting bank with Rs 3.95 arba.Net interest income is calculated by deducting interest expenses from interest income.Net interest income is the core business of banking industry.
The average operating income of the commercial bank has increased by 67.02%.Nepal Bank Ltd. has the highest operating profit in term of percentage change. Nepal Investment Bank remains ahead with Rs 1.20 arba in amount. Four banks Janata, Prabhu, Sunrise and Kumari Bank have more than 100% increment in operating profit.
Nepal Bank Ltd. has the highest percentage change in net profit by 524% mainly due to its non-operating income along with 47% increment in net interest income. The average net profit of 21commercial banks is 67.98% having five banks above 100% net profit in this Q4 compared to the previous year corresponding quarter. Nepal Bank Limited has the highest amount of net profit with Rs 3 arba net profit .Likewise Nabil Bank and Nepal Investment Bank come in second and third place with Rs Rs 2.82 arba and Rs 2.59 arba respectively.
Nabil Bank Ltd has the highest earning per share and Nepal Bank Ltd. proceedsin the second place. Also Janata Bank Ltd and Kumari Bank Ltd have high percentage growth in term of EPS. Earnings per share of Prabhu bank has decreased to nearly 40%. Average EPS of all commercial banks has increased from Rs.24.63 to Rs 30.32.
Net worth per share of Nabil Bank remains to be the highest followed by Nepal Investment Bank and Siddhartha Bank Ltd. The net worth per share of Nabil, Nepal Investment and Siddhartha Bank is Rs 260, Rs 246.38and Rs 206 respectively. Even though Nepal Bank Ltd. has the highest EPS and profit of Rs 3 arba its net worth per share is the lowest among 21 commercial banks. Also net worth of Prabhu Bank has decreased from previous quarter endings.
The average increment in paid up capital is 28.62% i.e from Rs 3.16 arba to Rs 4.07 arba of all banks. NMB Bank has the highest paid up capital increment by 86.96% (merger with 4 financial institutions) followed by Prabhu Bank Limited with 83.28% (merger with Grand Bank Nepal and 25% right share). Paid up capital of 5 commercial banks remain unchanged up to the fourth quarter of the last fiscal year 2072/73 compared to the corresponding quarter of FY 2071/72. The highest paid up capital remains with NIB i.e 7.25 arba.
Mega Bank Nepal Limited has the highest percentage change in reserve and surplus with 373.51%growth. Financially sound NIB Bank has the highest reserve of Rs 10.62 arba and NABIL bank with 7.59 arba. The average reserve and surplus increment of commercial bank is 86.71% in Q4. Nepal Bank Ltd. has also positive result with Rs 38.47crore in reserve and surplus. Out of 21 commercial banks, reserve and surplus of 7 banks increased by more than 100% whereas Prabhu Bank’s reserve and surplus decreased by 23.16% in this Q4 compared to the last corresponding quarter ending.
NMB Bank came through all the commercial banks with 83.65% change in deposits. NMB Bank, Sunrise Bank, Mega Bank, Siddhartha Bank and Prabhu Bank Limited come under the rank of top five banks in terms of deposit collection. The deposits of these top five banks have increased by 40% which is credited to its merger and acquisition process with Bank and Financial Institutions (BFIs).The average deposits of all banks hover at 25.00%. Deposits of all banks, on average, have increased to Rs 57.94 arba from Rs 46.35 arba. Janata Bank Nepal Ltd. with 5 percent change has the lowest percentage change in terms of deposits.
In terms of percentage, NMB Bank tops the remaining 21 commercial banks in fund collection and mobilization whereas in amount Nepal Investment Bank is ahead with Rs 87 arba in Loan and Advances followed by Nabil Bank Ltd. with Rs 77.73 arba. The average loan and advances of the bank remains at 32.49%.NMB Bank, Sunrise Bank, Mega Bank, Siddhartha Bank and Prabhu Bank’s loan has exceeded by 50% in this Q4 compared to previous year corresponding quarter.
The average net interest income of 21 commercial banks remains at 34.03%. NMB Bank’s net interest income is twice the net interest income of Sanima Bank Limited which endures the second position in the list. Nepal Bank has the highest amount of net interest income of Rs 4.69 arba with Nepal Investment Bank as the supporting bank with Rs 3.95 arba.Net interest income is calculated by deducting interest expenses from interest income.Net interest income is the core business of banking industry.
The average operating income of the commercial bank has increased by 67.02%.Nepal Bank Ltd. has the highest operating profit in term of percentage change. Nepal Investment Bank remains ahead with Rs 1.20 arba in amount. Four banks Janata, Prabhu, Sunrise and Kumari Bank have more than 100% increment in operating profit.
Nepal Bank Ltd. has the highest percentage change in net profit by 524% mainly due to its non-operating income along with 47% increment in net interest income. The average net profit of 21commercial banks is 67.98% having five banks above 100% net profit in this Q4 compared to the previous year corresponding quarter. Nepal Bank Limited has the highest amount of net profit with Rs 3 arba net profit .Likewise Nabil Bank and Nepal Investment Bank come in second and third place with Rs Rs 2.82 arba and Rs 2.59 arba respectively.
Nabil Bank Ltd has the highest earning per share and Nepal Bank Ltd. proceedsin the second place. Also Janata Bank Ltd and Kumari Bank Ltd have high percentage growth in term of EPS. Earnings per share of Prabhu bank has decreased to nearly 40%. Average EPS of all commercial banks has increased from Rs.24.63 to Rs 30.32.
Net worth per share of Nabil Bank remains to be the highest followed by Nepal Investment Bank and Siddhartha Bank Ltd. The net worth per share of Nabil, Nepal Investment and Siddhartha Bank is Rs 260, Rs 246.38and Rs 206 respectively. Even though Nepal Bank Ltd. has the highest EPS and profit of Rs 3 arba its net worth per share is the lowest among 21 commercial banks. Also net worth of Prabhu Bank has decreased from previous quarter endings.
