How did the commercial banks fair in the third quarter?
ShareSansar, May 21:
As almost all of the listed companies have come up with their unaudited financial report for the third quarter, it is worthwhile to compare the performance of the companies by the end of the quarter. As part of a series on the performance of the listed companies, we have taken the commercial banks for now.
If we look at the table 1, we realize that the banking group has fared pretty well when it comes to key indicators such as net profit, deposit and loan mobilization, EPS, ROE and ROA.
Table 1: The industrial growth
|
Particulars |
3rd Quarter 2070/71 |
3rd Quarter 2069/70 |
Difference (In figure) |
% Change |
|
Total Net Profit |
14,514,291.57 |
12,906,227.35 |
1,608,064.22 |
12.46% |
|
Total Operating Profit Before Provision |
25,237,577.84 |
23,613,945.83 |
1,623,632.01 |
6.88% |
|
Total Net Interest Income |
32,768,627.36 |
30,986,559.48 |
1,782,067.88 |
5.75% |
|
Total Deposits |
1,131,832,450.11 |
930,876,879.06 |
200,955,571.05 |
21.59% |
|
Total Loans and Advances |
850,895,558.16 |
718,241,152.11 |
132,654,406.05 |
18.47% |
|
Total Provision |
5,039,813.35 |
7,191,790.45 |
-2,151,977.10 |
-29.92% |
|
Average CD ratio |
69.12% |
76.05% |
-0.07 |
-9.11% |
|
Average Non Performing Loan |
3.13% |
2.63% |
0.50% |
19.01% |
|
Average Net Interest Spread |
4.36% |
4.39% |
-0.03% |
-0.68% |
|
Annualized Average Earning Per Share (EPS) |
24.15 |
22.75 |
1.40 |
6.15% |
|
Annualized Average Return on Equity (ROE) |
16.38% |
14.33% |
2.05% |
14.31% |
|
Annualized Average Return on Asset (ROA) |
1.16% |
1.42% |
-0.26% |
-18.31% |
|
Average Networth (In Rs.) |
163.04 |
147.78 |
15.26 |
10.33% |
Table 2: Top five in terms of net profit
|
S.No. |
Name |
Net profit (Rs in ‘000’) |
Growth |
|
1 |
NABIL |
1,646,716 |
6.00% |
|
2 |
NIBL |
1,391,624 |
4.00% |
|
3 |
RBS |
1,255,654 |
21.60% |
|
4 |
EBL |
1,080,947 |
4.86% |
|
5 |
SCB |
999,453 |
17.86% |
Table 3: Top Five in terms of growth
|
S.No. |
Name |
Growth |
Net profit (Rs in ‘000’) |
|
1 |
MBL |
223.41% |
317,932 |
|
2 |
Century |
161.92% |
62,667 |
|
3 |
GBIME |
101.48% |
727,373 |
|
4 |
Mega |
98.22% |
257,992 |
|
5 |
NICA |
62.89% |
627,312 |
Tables 2 and 3 below list the top five performers in terms of net profit and growth. We can see that though the leading banks top the group when it comes to net profit, younger banks and those from the middle range banks, most of which have opted for merger, comprise most of the best performers.
Table 4: Scrips above Rs 1500
|
S.No. |
Name |
Price (In Rs) |
Net profit (Rs in ‘000’) |
Growth |
NPL |
EPS (In Rs) |
Networth (In Rs) |
|
1 |
EBL |
2225.00 |
1,080,947 |
4.86% |
0.62% |
75.02 |
307.55 |
|
2 |
NABIL |
1915.00 |
1,646,716 |
6.00% |
2.96% |
72.72 |
274.17 |
|
3 |
SCB |
1783.00 |
999,453 |
17.86% |
0.52% |
65.27 |
274.50 |
It is interesting to note (Table 4) that though Standard Chartered Bank Limited (SCB) has posted the highest growth among the top-notch banks, EPS of Everest Bank Limited (EBL) is the highest – thanks to the lower paid-up capital as compared to the other two banks in this category. NPL is somewhat worrisome in the case of Nabil.
Table 5: Scrips between price range of Rs 600 to Rs 1499
|
S.No. |
Name |
Price (In Rs) |
Net profit (Rs in ‘000’) |
Growth |
NPL |
EPS (In Rs) |
Networth (In Rs) |
|
1 |
SBI |
1004.00 |
674,714 |
22.81% |
0.35% |
33.95 |
168.32 |
|
2 |
NIB |
842.00 |
1,391,624 |
4.00% |
1.63% |
44.75 |
202.93 |
|
3 |
HBL |
822.00 |
792,852 |
10.42% |
2.84% |
36.48 |
210.23 |
|
4 |
NICA |
735.00 |
627,312 |
62.89% |
2.77% |
36.18 |
216.97 |
|
5 |
NBB |
649.00 |
401,756 |
29.25% |
1.80% |
24.23 |
179.84 |
|
6 |
SBL |
618.00 |
362,559 |
28.84% |
3.14% |
26.66 |
157.84 |
|
7 |
GBIME |
590.00 |
727,373 |
101.48% |
2.82% |
23.61 |
147.21 |
Table 5 shows that the growth of the banks which have gone for merger is higher than the other banks in this category. Growth of Global IME Bank is awesome. NIBL, nonetheless, has the highest EPS. Though some of the banks in this category have better indicators than SBI, they are priced lesser.
Table 6: Scrips between price range of Rs 400 to Rs 599
|
S.No. |
Name |
Price (In Rs) |
Net profit (Rs in ‘000’) |
Growth |
NPL |
EPS (In Rs) |
Networth (In Rs) |
|
1 |
BOK |
550.00 |
355,000 |
-17.25% |
1.52% |
24.65 |
190.59 |
|
2 |
LBL |
463.00 |
233,565 |
-14.60% |
2.21% |
18.38 |
174.39 |
|
3 |
SANIMA |
470.00 |
320,823 |
52.00% |
0.05% |
19.41 |
123.78 |
|
4 |
PCBL |
470.00 |
423,708 |
9.20% |
2.01% |
21.41 |
133.16 |
|
5 |
MBL |
468.00 |
317,932 |
223.41% |
2.20% |
17.10 |
125.79 |
|
6 |
NCC |
452.00 |
172,092 |
-27.96% |
3.40% |
18.26 |
166.78 |
|
7 |
ADBL |
440.00 |
800,512 |
-18.00% |
6.43% |
21.29 |
259.28 |
|
8 |
CZBIL |
430.00 |
304,056 |
33.02% |
2.39% |
19.29 |
127.69 |
|
9 |
KBL |
405.00 |
192,390 |
14.29% |
3.69% |
19.81 |
178.46 |
|
10 |
NMB |
418.00 |
312,468 |
17.38% |
1.32% |
20.83 |
136.24 |
|
11 |
Mega |
405.00 |
257,992 |
98.22% |
1.99% |
11.07 |
116.31 |
In the table above, MBL, Mega and Sanima are the best performers in terms of growth in this category. Interestingly, BoK, despite its recent crisis, has the highest EPS followed by PCBL and ADBL. In terms of NPL, ADBL is worrisome, so are Kumari and NCC. It may be noted that half of the banks under this category have similar net worth compared to those between the price range of Rs 600 to Rs 1499 (Table 5) but most of the other indicators are weaker.
Table 7: Scrips below Rs 400
|
S.No. |
Name |
Price (In Rs) |
Net profit (Rs in ‘000’) |
Growth |
NPL |
EPS (In Rs) |
Networth (In Rs) |
|
1 |
SRBL |
395.00 |
272,736 |
24.86% |
3.62% |
18.05 |
135.18 |
|
2 |
NBL |
315.00 |
384,039 |
54.31% |
5.33% |
12.91 |
12.98 |
|
3 |
LUBL |
280.00 |
145,405 |
24.48% |
1.53% |
11.21 |
134.22 |
|
4 |
JBNL |
274.00 |
46,261 |
-63.24% |
1.39% |
2.99 |
105.27 |
|
5 |
GRAND |
268.00 |
89,476 |
-44.73% |
4.55% |
5.97 |
113.43 |
|
6 |
CBL |
249.00 |
75,850 |
-10.12% |
1.57% |
5.06 |
105.70 |
|
7 |
KIST |
207.00 |
-213,640 |
-288.37% |
23.72% |
-10.68 |
61.26 |
|
8 |
Century |
0 |
62,667 |
161.92% |
0.67% |
4.18 |
110.07 |
The Table 7 shows why the banks under this category have not been able to fare well in the secondary market. Half of the banks under this category have registered negative growth. Most of the young commercial banks fall under this group. The oldest bank in the country, NBL, and the newest bank, Century, have, nonetheless, posted remarkable growth in the third quarter.
