Comparative study of Nabil, Everest & Standard Chartered Bank
Wed, Jul 13, 2016 11:45 AM on Latest, Exclusive, Featured, Company Analysis, Stock Market,
Everest Bank Limited (EBL), Nabil Bank Limited (NABIL) and Standard Chartered Bank Limited (SCB) are one of the most sought after commercial banks in the secondary market. All the three banks have very strong fundamentals. Investors compare these three banks to find out which one is best for investment.
ShareSansar has studied unaudited 3rd quarterly reports of the ongoing fiscal year of all the three banks. Also, we have compared year on year (Y-o-Y) growth rate on the basis of an annual report from FY 2067/68 till FY 2071/72.
Comparing the paid up capital of three commercial banks by the end of Q3, paid up capital of NABIL bank is higher than EBL and SCB. Paid up Capital of Nabil Bank, Everest Bank and Standard Chartered Bank stands at Rs 4756.57 million, Rs 2742.60 million and 2248.16 million respectively. Everest Bank has 12 million convertible preference share in its paid up capital.
Comparing the reserve, NABIL bank has a higher reserve than both the banks. NABIL, EBL and SCB have reserves of Rs 6817.56 million, Rs 5356.82 million and Rs 4607.17 million respectively.
Everest Bank and Standard chartered must meet a paid up requirement of Rs 4 arba by the end of fiscal year 2072/73. Investors are expecting these banks will come up with something to meet the paid up capital requirement.
The core business of banking sector is to provide loan to customers from the deposit collected.
Nabil Bank has the highest deposit collection out of all the three banks. Nabil bank has almost 45% of total deposit collection of three banks. The SCB and EBL covers 23.13% and 31.77% of the total deposit collection. NABIL is aggressive in deposit collection and loan mobilization compared to Everest and Standard Chartered Bank. NABIL bank covers 40% of total loan mobilization of the three banks.
NABIL has higher net interest income compared to EBL and SCB. Nabil bank covers 46.74% of the total net interest income earned by all the three banks.
Net profit of NABIL stands at Rs 2068.79 million, whereas net profit of EBL and SCB stands at Rs 1209.05 million and 906.78 million respectively in the third quarter of the ongoing fiscal year.
NABIL bank seems to be generating profit from its core and consistent business.
SCB has greater Capital Adequacy ratio than other two. However, all three banks have maintained the CAR as per the regulatory norms of Nepal Rasta Bank (NRB).
SCB has the lowest NPL out of all the three banks in the third quarter of the ongoing fiscal year. NABIL NPL is more than 1 percent, whereas EBL and SCB NPL is below 1 Percent.
Year to year Growth Rate Comparison.
Comparing the paid up capital of three commercial banks by the end of Q3, paid up capital of NABIL bank is higher than EBL and SCB. Paid up Capital of Nabil Bank, Everest Bank and Standard Chartered Bank stands at Rs 4756.57 million, Rs 2742.60 million and 2248.16 million respectively. Everest Bank has 12 million convertible preference share in its paid up capital.
Comparing the reserve, NABIL bank has a higher reserve than both the banks. NABIL, EBL and SCB have reserves of Rs 6817.56 million, Rs 5356.82 million and Rs 4607.17 million respectively.
Everest Bank and Standard chartered must meet a paid up requirement of Rs 4 arba by the end of fiscal year 2072/73. Investors are expecting these banks will come up with something to meet the paid up capital requirement.
The core business of banking sector is to provide loan to customers from the deposit collected.
Nabil Bank has the highest deposit collection out of all the three banks. Nabil bank has almost 45% of total deposit collection of three banks. The SCB and EBL covers 23.13% and 31.77% of the total deposit collection. NABIL is aggressive in deposit collection and loan mobilization compared to Everest and Standard Chartered Bank. NABIL bank covers 40% of total loan mobilization of the three banks.
NABIL has higher net interest income compared to EBL and SCB. Nabil bank covers 46.74% of the total net interest income earned by all the three banks.
Net profit of NABIL stands at Rs 2068.79 million, whereas net profit of EBL and SCB stands at Rs 1209.05 million and 906.78 million respectively in the third quarter of the ongoing fiscal year.
NABIL bank seems to be generating profit from its core and consistent business.
SCB has greater Capital Adequacy ratio than other two. However, all three banks have maintained the CAR as per the regulatory norms of Nepal Rasta Bank (NRB).
SCB has the lowest NPL out of all the three banks in the third quarter of the ongoing fiscal year. NABIL NPL is more than 1 percent, whereas EBL and SCB NPL is below 1 Percent.
Year to year Growth Rate Comparison.
- Analyzing the year to year growth rate of three commercial banks, we found out the year on year growth of Reserve and Surplus of NABIL is 17%, EBL is 24.58% and SCB is 11.0%.
- Year on year growth in deposit collection of NABIL, EBL and SCB is 20.32%, 24.58% and 11.0%.
- Year on Year growth in interest income of NABIL and EBL is 2.39% and 3.64% respectively. Interest income of SCB has declined by 1.35%.
- EBL year on year growth rate in staff expenses is higher than Nabil and SCB. Even if the staff expense of NABIL and SCB is added it will be lesser than staff expense of EBL.
- Year on year growth rate in operating Profit of NABIL and EBL is almost the same.
- SCB has outperformed other two banks in terms of Asset quality and has been successful in maintaining the lowest NPL in comparison with the other two banks.
- The average staff expenses of Nabil Bank is 17.09%, of EBL its 20.46% and of SCB its 27.69%.
- Return on Equity and Return on assets of all bank are almost same. ROE And ROA Of three banks is declining stage when compared to previous fiscal years.
- Everest Bank earnings per share is higher than Nabil and SCB. Nabil and SCB earning per share is almost same in FY 2071/72. Looking at the reports of the past five years we found out that the earnings per share of all the three banks are in declining stage.
- In terms of Net worth per share, EBL bank top the list and followed by NABIL and SCB.
- In terms of Profitability, NABIL has recorded high net profit margin, whereas EBL and SCB are in same situation.
