How the commercial banks performed by the fourth quarter

ShareSansar, August 20:

Now that most of the companies listed with Nepal Stock Exchange Limited (Nepse) have already published their financials for the fourth quarter, it’s high time to recap how they fared, and most importantly, which companies fared the best.

 We will start with the best performing companies in the banking group.

Among the commercial banks, most of the big ones such as Nabil, NIBL, Everest, SCB, HBL, and Nepal SBI continued to meet the expectations.  Among the state-run banks NBL outperformed while RBB posted a modest growth while ADBL came with upsetting figure largely due to a massive sum of Rs 3.3 arba it set aside as staff expenses.

Among the emerging ones, Global IME, NBB, NIC ASIA PCBL, Siddartha and Mega clearly outperformed  in the last fiscal year.  

Table 1:

                                                             Rs in '000'

* unaudited figures

Nabil emerged as the bank with the highest profit (Rs 2.33 arba) followed by NIBL as somewhat distant second with (Rs 19.57 arba), RBB (Rs 17.33 arba), Everest (Rs 1.54 arba and ADBL (Rs 1.50 arba).

Despite disappointing performance of a few of them, particularly ADBL and Grand, most of the commercial banks have done better in the last fiscal year – notwithstanding the fact that they had to struggle with surplus liquidity in the market and the central bank’s move to contain the spread rate within 5 percent.

This can also be substantiated from the fact that there were five banks with net profit of more than Rs 1.5 arba in the last fiscal year, as mentioned above, while there  only four banks to cross that mark in the previous fiscal year—ADBL (Rs 2.25 arba, Nabil (Rs 2.23 arba), NIBL (Rs 1.99 arba), RBB (Rs 1.51 arba).

Likewise, there were only seven banks with their net profit above Rs 1 arba in the previous fiscal year as compared to nine banks in the last fiscal year. See the table below:

Table 2:

Rs in '000'

*unaudited figures

All in all, BFIs have posted robust growth in the last fiscal year despite all odds. Isn’t it something to cheer about!