Staff Expenses: Government Banks Spend the Highest Among all Commercial Banks
Mon, Oct 19, 2015 10:00 AM on Latest, Exclusive, Financial Analysis, Stock Market,
A 6 year analysis of staff expenses of Commercial Banks by sharesansar shows a very interesting story. The overall staff expense of the banking industry has been rising since FY 2067/68. The 4th Quarter report of the banking industry shows that the average staff expenses this year has been the highest ever.
On average the banking industry spent the least Rs.352.09 million in FY 2067/68 and highest Rs.595.99 million in FY 2071/72. Unsurprisingly, banks with large government stakes have consistently been the banks with the highest staff expenses.
Further, an analysis of the average staff expenses and total operating expenses shows that staff expenses occupy a greater proportion of the total operating expenses.
Staff expense constituted 33.94% of operating expenses in FY 2066-67 while the same figure now stands at 36.58%. It had dropped down to a low of 30.86% in FY 2068-69.
As of Q4 2072 the average amount spent on staff expenses is equivalent to 74.40% of the total net profit. In FY 2068/69 it was as high as 287.97% of net profit. Agricultural Development Bank Ltd., Rastriya Banijya Bank Ltd. And Nepal Bank Ltd. Spent the most on staff expenses while Grand Bank Ltd., Lumbini Bank Ltd. and Prime Commercial Bank Ltd. Spent the least.
Further, an analysis of the average staff expenses and total operating expenses shows that staff expenses occupy a greater proportion of the total operating expenses.
Staff expense constituted 33.94% of operating expenses in FY 2066-67 while the same figure now stands at 36.58%. It had dropped down to a low of 30.86% in FY 2068-69.
As of Q4 2072 the average amount spent on staff expenses is equivalent to 74.40% of the total net profit. In FY 2068/69 it was as high as 287.97% of net profit. Agricultural Development Bank Ltd., Rastriya Banijya Bank Ltd. And Nepal Bank Ltd. Spent the most on staff expenses while Grand Bank Ltd., Lumbini Bank Ltd. and Prime Commercial Bank Ltd. Spent the least.
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