Unveiling Q4 2081/82: A Comprehensive Analysis of Leading Commercial Banks and Key Financial Insights

All 20 commercial banks have unveiled their financial reports for the fourth quarter of FY 2081/82, offering a fresh look into their performance during the twelve-month period. The disclosures present a deeper understanding of their profitability, capital strength, and overall business growth. This summary captures the major highlights and evolving trends in net earnings, capital adequacy ratios, and other essential financial indicators.

Net Profit:

In Q4 FY 2081/82, Nabil Bank Limited (NABIL) led with a net profit of Rs. 7.13 Arba, marking a 15.01% increase over the same period last year. Nepal Investment Mega Bank (NIMB) followed with a net profit of Rs. 6.76 Arba, though this represents a 64.46% increase from the previous year. Global IME Bank Limited (GBIME) took third with Rs. 6.20 Arba.

Kumari Bank Limited (NBL) recorded the highest growth, a staggering 45280.14% rise, while NIC Asia Bank Limited (NICA) saw the largest decline at 77.03%.

Paid-Up Capital:

Global IME Bank Limited (GBIME) holds the highest paid-up capital at Rs. 38.12 Arba, followed by Nepal Investment Mega Bank Limited (NIMB) at Rs. 34.13 Arba, and Nabil Bank Limited (NABIL) with Rs. 27.06 Arba. Standard Chartered Bank Nepal Limited (SCB) has the lowest paid-up capital at Rs. 10.04 Arba.

Note: ADBL Capital includes Rs. 5.43 Arba in irredeemable non-cumulative preference shares.

Reserve and Surplus:

The combined reserve and surplus of all commercial banks totaled Rs. 3.69 Kharba, with the industry average standing at Rs. 18.46 Arba. Rastriya Banijya Bank Limited (RBBL) led with Rs. 37.78 Arba, followed by Nabil Bank Limited (NABIL) at Rs. 36.68 Arba and Nepal Investment Mega Bank Limited (NIMB) with Rs. 33.23 Arba.

Deposits From Customers:

Collectively, commercial banks gathered Rs. 64.43 Kharba in customer deposits, with eight banks surpassing this average. Global IME Bank Limited (GBIME) led at Rs. 5.50 Kharba, followed by Nabil Bank Limited (NABIL) at Rs. 5.24 Kharba and Rastriya Banijya Bank (RBBL) at Rs. 5 Kharba. Standard Chartered Bank Nepal Limited (SCB) recorded the lowest deposit collection at Rs. 1.25 Kharba.

Loans and Advances to Customers:

Nabil Bank Limited (NABIL) topped the list in loans and advances with Rs. 4.13 Kharba, followed by Global IME Bank Limited (GBIME) with Rs. 4.12 Kharba.

Standard Chartered Bank Nepal Limited (SCB) had the smallest portfolio at Rs. 72.21 Arba. The industry average loan disbursement was Rs. 2.33 Kharba, with eight banks exceeding this average.

Net Interest Income:

Net interest income, reflecting core banking earnings, saw Global IME Bank Limited (GBIME) leading at Rs. 16.71 Arba, closely followed by Nabil Bank Limited (NABIL) at Rs. 16.33 Arba.

Provisions (Impairment/Reversal):

Banks allocated Rs. 25.52 Arba for loan loss provisions and delayed loan repayments. Global IME Bank Limited (GBIME) recorded the highest impairment charge at Rs. 4.31 Arba, with NIC Asia Bank Limited (NICA) next at Rs. 4.14 Arba.

Major Indicators:

Earnings Per Share (EPS):

Everest Bank Limited (EBL) posted the highest annualized EPS at Rs. 37.99, followed by Agriculture Development Bank Limited (ADBL) at Rs. 27.63 and Nabil Bank Limited (NABIL) at Rs. 26.34. The industry average EPS was Rs. 18.44, with ten banks above this benchmark. NIC Asia Bank Limited (NICA) had the lowest EPS at Rs. 1.08. 

Distributable Profit Per Share:

Net Worth Per Share:

Rastriya Banijya Bank Limited (RBBL) reported the highest net worth per share at Rs. 341.59, followed by Nepal Bank Limited (NBL) at Rs. 259.81 and Agriculture Development Bank Limited (ADBL) at Rs. 243.40. Kumari Bank Limited (KBL) recorded the lowest net worth per share at Rs. 142.19, while the industry average stood at Rs. 201.57.

*Note: Preference Share is excluded while calculating the Net worth of Agriculture Development Bank (ADBL).

P/E Ratio:

Prabhu Bank Limited (PRVU) had the lowest P/E ratio at 9.60 times, followed by  Nepal Bank Limited (NBL) at 11.35 times. This reflects quarter-end ratios, and current ratios may vary with recent stock prices.

Capital Adequacy Ratio (CAR):

Standard Chartered Bank Nepal Limited (SCB) reported the highest CAR at 17.82%, while Himalayan Bank Limited (HBL) reported the lowest at 11.64%. This ratio indicates a bank’s capital in relation to its risk-weighted assets.

Non-Performing Loan (NPL):

Everest Bank Limited (EBL) had the lowest NPL at 0.38%, while Himalayan Bank Limited (HBL) reported the highest NPL at 7.28%.

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

Standard Chartered Bank Nepal Limited (SCB) recorded the highest ROA at 1.95% while  Everest Bank Limited (EBL) reported the highest ROE at 15.36%. 

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

- Cost of Funds:  Prime Commercial Bank Limited (PCBL) reported the highest cost of funds at 5.21%, with Standard Chartered Bank Nepal Limited (SCB) having the lowest at 3.22%.

- CD Ratio: NMB Bank Limited (NMB) had the highest CD ratio at 84.33%, while Rastriya Banijya Bank Limited (RBBL) had the lowest at 62.39%.

- Base Rate:  NIC Asia Bank Limited (NICA) had the highest base rate of 7.04%, and Rastriya Banijya Bank Limited (RBBL) reported the lowest at 4.89%.

- Interest Spread: The average net interest spread across commercial banks was around 3.6% to 3.9%.

The table below provides a detailed overview of these financial indicators across the 20 commercial banks for Q4 FY 2081/82.