See the net profit of 28 commercial banks; NABIL & Nepal Investment makes it to the top in the second quarter

• Dheerusha Tiwari

It has been only fifteen days since the second quarter of FY 2074/75 has come to an end. The BFIs in the country have been announcing their unaudited quarterly reports in a prompt manner. Within the 15^th of Magh, 2074, all commercial banks have published their second quarter report. The investors in the secondary market are inquisitive on the financial status of each commercial bank. Net profit is a key indicator for investors to decide upon their choice of investment. Net profit reflects upon the operational efficiency and competitiveness of the banks. Therefore, this article aims to provide our esteemed readers an insight on the status of net profit of each commercial bank as of second quarter of FY 2074/75. The provided table sums up the second quarter net profit of FY 2074/75 and FY 2073/74 of the twenty eight commercial banks in the country.

The provided figures are rupees in thousands.

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Which are the top three banks in terms of net profit? Nepal Bank Limited (NBL) was ahead in terms of net profit as of first quarter of FY 2074/75. As for the second quarter of FY 2074/75, the bank that has left all 27 commercial banks  behind is NABIL Bank Limited. NABIL Bank has finally grabbed the top position among the 28 commercial banks with a net profit worth Rs 1.8377 arba. It increased its net profit from Rs 1.74 arba as of second quarter of FY 2073/74. Furthermore, Nepal Investment Bank (NIB) is seen to be in the second position with a net profit of Rs 1.8304 arba. It showed an increment in net profit from Rs 1.58 arba (Q2, FY 2073/74). NIB is behind NABIL by a mere 0.39% (i.e. Rs 72.99 lakhs). Finally, state owed commercial bank namely, Rastriya Banijya Bank has maintained the third position with a net profit of Rs 1.78 arba which is 46.66% higher than the second quarter of FY 2073/74 (i.e. Rs 1.21 arba). Rastriya Banijya Bank has not been listed in NEPSE. In terms of listed commercial banks, NIB is followed by Nepal Bank Limited (NBL) with a net profit of Rs 1.63 arba as per the published quarterly reports.

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Which banks made a tremendous growth in terms of net profit as compared to the second quarter of FY 2073/74? NABIL, NIB and Rastriya Banijya Bank are the banks that have undoubtedly grabbed top three positions in terms of net profit. However, if the readers are to analyze which banks have improved their net profit with respect to the net profit of second quarter of last fiscal year, Nepal Credit & Commercial Banks (NCCB), Sunrise Bank Limited (SRBL) and Kumari Bank Limited (KBL) have increased their net profit by 356.74%, 188.43% and 71.9%. For instance, NCCB increased its net profit from Rs 7.71 crore (Q2, FY 2073/74) to Rs 35.45 crore (Q2, FY 2074/75). SRBL has further attained a net profit of Rs 58.75 crore (Q2, FY 2074/75) from Rs 20.37 (Q2, FY 2073/74). Finally, KBL has shown growth from Rs 27.93 crore (Q2, FY 2073/74) a net profit of Rs 48.02 crore (Q2, FY 2074/75).

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Which bank holds what position? If we compare the position of commercial banks in terms of net profit in respect to the first and second quarter of FY 2074/75, NABIL bank has made its position at the first place down from third position. Similarly, NBL has lost its first position (Q1, FY 2074/75) to the forth position in the second quarter. In addition to this, NIB is consistent with second position in both the quarters of FY 2074/75. RBB has come one place ahead from forth to third position among the commercial banks. EBL is consistent with its fifth position in both the quarters. HBL is observed to be competitive by escalating to sixth position straight from ninth position. Similarly, ADBL has entered in the top seven banks while it was not even among top ten banks in the first quarter of this fiscal year. SCB and NMB has declined two positions i.e. from sixth to eighth and from seventh to ninth respectively. GBIME is consistent in both the quarters of the current fiscal year in the tenth rank among the commercial banks. The tabular below compares the position of the commercial banks in terms of net profit as of second quarter of FY 2074/75, first quarter of FY 2074/75 and as of second quarter of FY 2073/74.  

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Hence, the provided figures show the net profit as per the second quarter of FY 2074/75 of the commercial banks in the country. What say do you have on their performance? Which bank do you think has done better in terms of other indicators beside net profit?  Did the commercial bank of your choice perform as expected? Please feel free to leave your opinions in the comment section. (Disclaimer:  Any kind of information that is provided in the article should not be used as a sole advice or recommendation by investors in order to design their investment portfolio. So, before taking steps for any kind of the information, the investors are required to base their judgment on their own financial analysis, appropriateness of the information and seek independent financial advice. The information of the company has been taken from the authorized sources such as website of the company, NEPSE, financial reports and press releases of the companies so, any changes not updated in these may differ in the analysis.)