Unveiling Q1 2083/84: A Comprehensive Analysis of Leading Commercial Banks and Key Financial Insights

All 20 commercial banks have unveiled their financial reports for the first quarter of FY 2083/84, providing a fresh snapshot of their financial performance during the three-month period. The disclosures offer insights into their profitability, capital strength, asset quality, and overall business growth. This summary highlights key trends in net profit, capital adequacy ratios, non-performing loans, earnings per share, and other major financial indicators.

Net Profit:

In Q1 FY 2083/84, Nabil Bank Limited (NABIL) led Nepal’s commercial banks with the highest net profit of Rs. 2.56 Arba, followed by Global IME Bank Limited (GBIME) with Rs. 2.31 Arba and Rastriya Banijya Bank Limited (RBBL) with Rs. 1.65 Arba. Nabil Bank’s net profit increased by 46.00% compared to Rs. 1.75 Arba in the corresponding quarter of the previous fiscal year.

Nepal Investment Mega Bank Limited (NIMB) recorded the highest net profit growth among commercial banks, surging 2,524.44% to Rs. 1.18 Arba from Rs. 0.05 Arba in Q1 FY 2082/83. Agricultural Development Bank Limited (ADBL) followed with a 1,812.28% increase, while Rastriya Banijya Bank Limited (RBBL) posted a strong 184.31% growth in net profit.

Similarly, Siddhartha Bank Limited (SBL) recorded a 165.94% increase, while Sanima Bank Limited (SANIMA) saw its profit rise by 133.56%. Laxmi Sunrise Bank Limited (LSL) also posted notable growth of 97.88% during the review period.

On the other hand, Citizens Bank International Limited (CZBIL) recorded the sharpest decline, with net profit falling 148.64%, from a profit of Rs. 0.22 Arba to Rs. 0.11 Arba. Himalayan Bank Limited (HBL) reported a 6.57% decline, while Prime Commercial Bank Limited (PCBL) and Standard Chartered Bank Nepal Limited (SCB) saw their profits decline by 5.04% and 2.75%, respectively.

The 20 commercial banks collectively posted a net profit of Rs. 19.14 Arba in Q1 FY 2083/84, compared to Rs. 13.04 Arba in the corresponding period of the previous fiscal year, representing an overall growth of 46.72%. The industry average net profit stood at approximately Rs. 0.96 Arba, up from Rs. 0.65 Arba a year earlier.

Paid-Up Capital:

Global IME Bank Limited (GBIME) holds the highest paid-up capital at Rs. 39.64 Arba, followed by Nepal Investment Mega Bank Limited (NIMB) at Rs. 34.12 Arba, and Nabil Bank Limited (NABIL) at Rs. 33.40 Arba. Laxmi Sunrise Bank Limited (LSL) and Kumari Bank Limited (KBL) follow with Rs. 26.78 Arba and Rs. 26.22 Arba, respectively.

Standard Chartered Bank Nepal Limited (SCB) has the lowest paid-up capital at Rs. 10.04 Arba, followed by Nepal SBI Bank Limited (SBI) at Rs. 11.33 Arba and Everest Bank Limited (EBL) at Rs. 14.40 Arba. The combined paid-up capital of the 20 commercial banks stands at Rs. 417.12 Arba, with an average of approximately Rs. 20.86 Arba per bank.

Reserve and Surplus:

The combined reserve and surplus of all commercial banks totaled Rs. 394.62 Arba, with the industry average standing at Rs. 19.73 Arba. Rastriya Banijya Bank Limited (RBBL) led with Rs. 42.09 Arba, followed by Nabil Bank Limited (NABIL) at Rs. 38.03 Arba and Nepal Investment Mega Bank Limited (NIMB) at Rs. 34.43 Arba.

Global IME Bank Limited (GBIME) ranked fourth with Rs. 30.04 Arba, while Nepal Bank Limited (NBL) stood fifth with Rs. 28.33 Arba. Machhapuchchhre Bank Limited (MBL) recorded the lowest reserve and surplus at Rs. 8.01 Arba, followed by Citizens Bank International Limited (CZBIL) at Rs. 8.93 Arba and Prabhu Bank Limited (PRVU) at Rs. 10.28 Arba.

Deposits From Customers:

Collectively, commercial banks gathered Rs. 7,642.07 Arba in customer deposits, with seven banks surpassing the industry average of Rs. 382.10 Arba. Rastriya Banijya Bank Limited (RBBL) led with Rs. 714.67 Arba, followed by Global IME Bank Limited (GBIME) at Rs. 690.00 Arba and Nabil Bank Limited (NABIL) at Rs. 619.23 Arba.

Nepal Investment Mega Bank Limited (NIMB) ranked fourth with Rs. 540.80 Arba, followed by Laxmi Sunrise Bank Limited (LSL) at Rs. 439.55 Arba, Nepal Bank Limited (NBL) at Rs. 434.13 Arba, and Kumari Bank Limited (KBL) at Rs. 428.34 Arba. Standard Chartered Bank Nepal Limited (SCB) recorded the lowest customer deposits at Rs. 149.39 Arba, followed by Machhapuchchhre Bank Limited (MBL) at Rs. 228.37 Arba and Nepal SBI Bank Limited (SBI) at Rs. 239.53 Arba.

Loans and Advances to Customers:

Nabil Bank Limited (NABIL) topped the list in loans and advances with Rs. 476.01 Arba, followed by Global IME Bank Limited (GBIME) with Rs. 471.96 Arba and Rastriya Banijya Bank Limited (RBBL) with Rs. 340.43 Arba. Nepal Investment Mega Bank Limited (NIMB) ranked fourth with Rs. 322.41 Arba, followed by Laxmi Sunrise Bank Limited (LSL) with Rs. 321.09 Arba and Kumari Bank Limited (KBL) with Rs. 293.10 Arba.

Standard Chartered Bank Nepal Limited (SCB) had the smallest loan portfolio at Rs. 67.22 Arba, followed by Nepal SBI Bank Limited (SBI) at Rs. 150.50 Arba and Machhapuchchhre Bank Limited (MBL) at Rs. 172.65 Arba. The industry average loan portfolio stood at Rs. 255.38 Arba, with seven banks exceeding the average.

Net Interest Income:

Net interest income, a key indicator of core banking earnings, was highest at Nabil Bank Limited (NABIL), which recorded Rs. 4.73 Arba, followed by Global IME Bank Limited (GBIME) at Rs. 4.19 Arba and Rastriya Banijya Bank Limited (RBBL) at Rs. 4.01 Arba. Nepal Investment Mega Bank Limited (NIMB) ranked fourth with Rs. 3.27 Arba, followed by Laxmi Sunrise Bank Limited (LSL) at Rs. 2.76 Arba.

The combined net interest income of the 20 commercial banks stood at Rs. 49.57 Arba, with the industry average at Rs. 2.48 Arba. Eight banks recorded net interest income above the industry average.

Provisions (Impairment/Reversal):

Banks recorded a total impairment charge of Rs. 11.08 Arba, reflecting provisions made for potential loan losses and credit-related risks. Laxmi Sunrise Bank Limited (LSL) posted the highest impairment charge at Rs. 1.20 Arba, followed by Agricultural Development Bank Limited (ADBL) at Rs. 1.15 Arba and Nepal Investment Mega Bank Limited (NIMB) at Rs. 1.10 Arba.

Citizens Bank International Limited (CZBIL) ranked fourth with an impairment charge of Rs. 1.07 Arba, followed by NIC Asia Bank Limited (NICA) at Rs. 0.93 Arba. The industry average impairment charge stood at Rs. 0.55 Arba. Standard Chartered Bank Nepal Limited (SCB) recorded the lowest impairment charge at negative Rs. 0.06 Arba.

Major Indicators:

Earnings Per Share (EPS):

Rastriya Banijya Bank Limited (RBBL) posted the highest annualized EPS at Rs. 42.20, followed by Everest Bank Limited (EBL) at Rs. 34.78 and Nabil Bank Limited (NABIL) at Rs. 30.34. Standard Chartered Bank Nepal Limited (SCB) ranked fourth with an EPS of Rs. 26.74, while Sanima Bank Limited (SANIMA) recorded Rs. 26.11.

The industry average EPS stood at Rs. 17.87, with ten banks above this benchmark. Agricultural Development Bank Limited (ADBL) posted the lowest EPS at negative Rs. 1.51, followed by Citizens Bank International Limited (CZBIL) at Rs. 2.68 and NIC Asia Bank Limited (NICA) at Rs. 3.42.

Note: Preference Share Dividend is adjusted while calculating EPS.

Distributable Profit Per Share:  

Everest Bank Limited (EBL) reported the highest distributable profit per share at Rs. 26.87, followed by Standard Chartered Bank Nepal Limited (SCB) at Rs. 22.19 and Siddhartha Bank Limited (SBL) at Rs. 21.96. Nepal Bank Limited (NBL) ranked fourth at Rs. 18.73, while Sanima Bank Limited (SANIMA) recorded Rs. 14.68.

Four banks reported negative distributable profit per share, with NIC Asia Bank Limited (NICA) recording the lowest at negative Rs. 103.21, followed by Himalayan Bank Limited (HBL) at negative Rs. 43.39 and Prabhu Bank Limited (PRVU) at negative Rs. 28.83. Nepal Investment Mega Bank Limited (NIMB) also reported negative distributable profit per share of Rs. 15.12.

Note: DPS is non-annualized 

Net Worth Per Share:

Rastriya Banijya Bank Limited (RBBL) reported the highest net worth per share at Rs. 369.23, followed by Nepal Bank Limited (NBL) at Rs. 292.89 and Everest Bank Limited (EBL) at Rs. 243.01. Nabil Bank Limited (NABIL) ranked fourth with Rs. 233.90, while Agricultural Development Bank Limited (ADBL) stood fifth at Rs. 232.58.

Prabhu Bank Limited (PRVU) recorded the lowest net worth per share at Rs. 143.64, followed by Citizens Bank International Limited (CZBIL) at Rs. 155.43 and Machhapuchchhre Bank Limited (MBL) at Rs. 164.37. The industry average stood at Rs. 205.00, with six banks reporting net worth per share above the industry average.

P/E Ratio:

Global IME Bank Limited (GBIME) had the lowest P/E ratio at 10.88 times, followed by Prime Commercial Bank Limited (PCBL) at 11.98 times and Nepal Bank Limited (NBL) at 13.42 times. NMB Bank Limited (NMB) recorded 14.32 times, while Kumari Bank Limited (KBL) stood at 14.55 times.

NIC Asia Bank Limited (NICA) recorded the highest P/E ratio at 93.91 times, followed by Citizens Bank International Limited (CZBIL) at 82.57 times and Siddhartha Bank Limited (SBL) at 31.12 times. Agricultural Development Bank Limited (ADBL) reported a negative P/E ratio of 55.59 times. The industry average P/E ratio stood at 36.84 times. These figures reflect quarter-end ratios, and current P/E ratios may vary with changes in recent stock prices.

Capital Adequacy Ratio (CAR):

Standard Chartered Bank Nepal Limited (SCB) reported the highest Capital Adequacy Ratio (CAR) at 19.01%, followed by Nepal Bank Limited (NBL) at 13.64% and Nepal SBI Bank Limited (SBI) at 13.62%. Machhapuchchhre Bank Limited (MBL) recorded the lowest CAR at 9.22%, while the industry average stood at 12.35%. This ratio indicates a bank’s capital position in relation to its risk-weighted assets.

Non-Performing Loan (NPL):

Everest Bank Limited (EBL) had the lowest NPL at 0.50%, while Prabhu Bank Limited (PRVU) reported the highest NPL at 14.80%. The industry average NPL stood at 5.57%.

Return on Assets (ROA) & Return on Equity (ROE):

Standard Chartered Bank Nepal Limited (SCB) recorded the highest ROA at 11.52%, while Everest Bank Limited (EBL) reported the highest ROE at 14.31%. Sanima Bank Limited (SANIMA) followed with an ROA of 1.41% and ROE of 14.07%, while Prime Commercial Bank Limited (PCBL) recorded an ROA of 1.40% and ROE of 12.52%.

Additional Indicators: Cost of Funds, CD Ratio, Base Rates, and Interest Spread

Cost of Funds: Nepal SBI Bank Limited (SBI) reported the highest cost of funds at 3.69%, while Standard Chartered Bank Nepal Limited (SCB) had the lowest at 2.37%.

CD Ratio: Prime Commercial Bank Limited (PCBL) recorded the highest CD ratio at 86.41%, followed by NMB Bank Limited (NMB) at 84.71%. Standard Chartered Bank Nepal Limited (SCB) had the lowest CD ratio at 47.21%.

Base Rate: NIC Asia Bank Limited (NICA) had the highest base rate at 5.55%, while Rastriya Banijya Bank Limited (RBBL) reported the lowest at 3.90%.

Interest Spread: Everest Bank Limited (EBL) recorded the highest interest spread at 4.18%, followed by Siddhartha Bank Limited (SBL) and Standard Chartered Bank Nepal Limited (SCB), both at 3.68%. Himalayan Bank Limited (HBL) had the lowest spread at 2.78%.

The table below provides a detailed overview of these financial indicators across the 20 commercial banks for Q1 FY 2083/84.