Know commercial banks share price when it crossed 1175 index (a comparative study of then and now)
ShareSansar, August 9:
NEPSE index crossed 1000 points on July 23rd, 2015 after a year. A similar pattern of growth in the market was last seen during the first CA polls held in 2008 when the market jumped to its all time high of 1,175 points.
Let’s look at the situation of Commercial Banks then and compare their Price, EPS and P/E ratio with what they are now.
As per the annual financial report of the Fiscal Year 2064/65 (2007/08), the average P/E ratio of the commercial Banks stood at 58.90 times, EPS at Rs.48.14. The average share price of the commercial banks was Rs.1961.35.
As of August 6th 2015, the average EPS of commercial banks stands at Rs.28.03, average P/E ratio at 24.29 times and the average price of commercial banks stand at Rs.760.81. Clearly, if the market is to rise to its old high of 1175, the prices of commercial banks are sure to rise dramatically.
In the Fiscal Year 2064/65, Standard Chartered Bank Nepal Limited (SCB) had the highest P/E ratio and EPS. Its P/E ratio stood at 51.77 times and EPS at Rs.131.92. When the market reached its all time high of 1175 points, the share price of Standard Chartered bank had crossed Rs.6,830 per unit.
As per the third quarter report of the Fiscal Year 2071/72, Standard Chartered’s P/E ratio is at 34.49 times and its annualized EPS stands at Rs.56.79. The last traded price of Standard Chartered stood at Rs.2,328 as of August 6.
Similarly, Nabil Bank Limited (NABIL) EPS in fiscal year 2064/65 was Rs.108.31, its P/E ratio was 48.70 times, and its price crossed Rs.5, 275 whereas, as of August 6th 2015, Nabil’s shares are being traded at Rs.2300. Its annualized EPS as of Q3 2071/72 is Rs.59.63 and its P/E ratio stands at 38.57 times.
| As of year ended 2064/65 (2007/8) | As of Aug 6th 2015 | |||||
| Commercial Banks | Price | P/E | EPS | Price | P/E | EPS (annualized) |
| Nepal Bank Limited | 62.89 | 273 | 36.70 | 7.44 | ||
| Rastriya Banijya Bank Limited | 446.13 | 0.00 | 63.05 | |||
| Nabil Bank Limited | 5275 | 48.7 | 108.31 | 2300 | 38.57 | 59.63 |
| Nepal Investment Bank limited | 2450 | 42.33 | 57.87 | 801 | 18.72 | 42.80 |
| Standard Chartered Bank Nepal Limited | 6830 | 51.77 | 131.92 | 2328 | 40.99 | 56.79 |
| Himalayan Bank Limited | 1980 | 31.56 | 62.74 | 1078 | 30.75 | 35.06 |
| Nepal SBI Bank Limited | 1511 | 53.34 | 28.33 | 1139 | 31.55 | 36.10 |
| Nepal Bangladesh Bank Limited | 1001 | 12.49 | 80.16 | 570 | 20.26 | 28.14 |
| Everest Bank Limited | 3132 | 34.11 | 91.82 | 2600 | 34.91 | 74.48 |
| Bank of Kathmandu Limited | 2350 | 39.21 | 59.94 | 591 | 19.56 | 30.21 |
| Nepal Credit and Commerce Bank Limited | 475 | 12.83 | 35.63 | 458 | 15.21 | 30.11 |
| Lumbini Bank Limited | 631 | 19.18 | 32.91 | 366 | 22.26 | 16.45 |
| NIC Asia Bank Limited | 730 | 25.32 | 28.83 | |||
| Machhapuchhre Bank Limited | 1285 | 124.19 | 10.35 | 600 | 28.38 | 21.14 |
| Kumari Bank Limited | 1005 | 61.47 | 16.35 | 391 | 28.37 | 13.78 |
| Laxmi Bank Limited | 1113.007 | 67.66 | 16.45 | 416 | 30.39 | 13.69 |
| Siddhartha Bank Limited | 1090 | 63.04 | 17.29 | 752 | 20.68 | 36.36 |
| Agriculture Development Bank Limited | 32.21 | 463 | 33.86 | 13.68 | ||
| Global IME Bank Limited | 8.91 | 494 | 22.85 | 21.61 | ||
| Citizens Bank International Limited | 8.79 | 560 | 21.83 | 25.66 | ||
| Sunrise Bank Limited | -3.89 | 469 | 24.93 | 18.81 | ||
| Grand Bank Nepal Limited | 855 | 172.38 | 4.96 | |||
| NMB Bank Limited | 930 | 127.71 | 7.28 | 0.00 | 23.23 | |
| Prabhu Bank Limited | 388 | 13.45 | 28.86 | |||
| Janata Bank Nepal Limited | 271 | 31.10 | 8.71 | |||
| Mega Bank Nepal Limited | 0.00 | 13.65 | ||||
| Civil Bank Limited | 275 | 31.26 | 8.80 | |||
| Century Commercial Bank Limited | 335 | 32.66 | 10.26 | |||
| Sanima Bank Limited | 1430 | 25.557 | 56 | 648 | 29.29 | 22.13 |
| Prime Commercial Bank | 4 | 485 | 20.64 | 23.50 | ||
*The figures presented above of FY 2064/65 have been compiled using the data of 17 commercial banks that are still in operation now.
*The figures for FY 2071/72 have been compiled from the third quarter report of 2071/72 published by all 30 commercial Banks.
* The banks highlighted in yellow indicate that those banks were not in operation in 2008 but are in operation now.
*Grand Bank was being traded in the Year 2008 but it is not being traded now as it is in the process of being acquired by Prabhu Bank Limited and NMB was traded then but is not traded now as it has entered the merger process with other financial institutions.
*Rastriya Banijya Bank has not floated its IPO yet so it was neither traded then nor now.
