What can we expect from commercial banks in Q3?

ShareSansar, April 30:

A few of the commercial banks have published their third quarterly reports so far, and many more are yet to follow the suit.

However, the third quarter report is a vital indicator of the projected growth of any company in the current fiscal year. In this light, ShareSansar brings to you the expected net profit rise of the commercial banks by the end of the third quarter for the benefit of share investors.

And, if the expected growth of the many of the sought-after commercial banks is anything to by, the commercial banks are going to pledge better dividend to the shareholders by the end of the current fiscal year as the trend is encouraging.

Only sevenout of the total of 30 commercial banks have published their unaudited third quarterly report so far. They are Sanima, Global IME, Citizens, NMB, Kumari, BOK and Nepal Investment Bank Limited have published their third quarter report.

Sanima Bank Limited has reported a net profit rise of 52 percent while Global IME, with which Commerz and Trust Bank Nepal Limited has merged, has stated that it reported net profit growth of 101.89 percent. Though IME’s profit also includes the net profit earned by Commerz and Trust while figures of the corresponding quarter represent those of Global IME only, the core business of Global IME, too, is very impressive.

Citizens Bank International Limited has also reported a rise of 33 percent net profit it posted in the third quarter was mainly propelled by its core business. And then, NMB Bank Limited and Kumari Bank Limited have reported profit rise of 18 percent and 14 percent respectively.  

Similarly, Nepal Investment Bank Limited (NIBL) has posted 4 percent growth in net profit by the end of the third quarter of the current fiscal year 2070/71. This is a significant growth going by the sheer volume of the transaction the bank does.

Another important aspect of the balance sheet is that NIBL’s non-performing loan has considerably gone down from 2.53 percent in the third quarter of the last fiscal to 1.63 percent by the end of the third quarter of the current fiscal.

This despite the fact that the BFIs, especially the commercial banks, have been struggling through the current fiscal due to excess liquidity in the banking system.

What about the other commercial banks?

Will the remaining commercial banks announce good profit rise by the end of the third quarter.

The leading ones are apparently set to report impressive rise in profit, according to the concerned officials.

Its non-performing loan has also significant dropped below 2 percent from 2.53 percent in the third quarter of the last fiscal, sources further informed, adding that the unaudited financial report will come out within the next few days.

Everest Bank Limited is all set report 3 to 4 percent rise in the net profit, or Rs 108 crore to Rs 110 crore, up from Rs 103 crore in the corresponding quarter.

“Our operational profit has crossed Rs 170 crore as compared to Rs 162 crore in the third quarter last fiscal year,” a highly placed source at the bank informed, adding that they were planning to publish the unaudited financial report by next week.

Nepal SBI Bank Limited will report approximately 20 percent profit rise for the third quarter, a senior bank official informed.

“Though we are still finalizing the balance sheet, the net profit figure emerging out suggests something to the tune of Rs 66 crore,” said the source. SBI had posted a net profit of Rs 47.82 crore in the third quarter of the last fiscal.

He further informed that they were planning to publish the unaudited quarterly report by May 5.

Nabil Bank Limited officials said that they were poised to report rise in net profit, but would not give details since they are still compiling data.

“If things go as planned, we may be able to publish the third quarter report by May 8,” a Nabil source added.

Himalayan Bank Limited officials said that they will post a “slight” growth in the net profit, and planned to come out with the balance sheet by next week.

Standard Chartered Bank Limited did not disclose any information regarding the third quarter report.

CEO of Nepal Bangladesh Bank Limited Dhungana also informed that the bank will report approximately Rs 40 crore net profit in the third quarter report, which is expected within a week.

That will be a net profit rise of nearly 30 percent since NB Bank had posted net profit of Rs 31.08 percent in the corresponding quarter of the last fiscal year 2069/70.

“Our non-performing loan has also dropped to below 2 percent,” he added. NB Bank’s NPL had stood at a whopping 3.50 percent at the end of the corresponding quarter of the last fiscal.

Officials with Agricultural Development Bank Limited said that they were currently compiling data from across the country, and that the net profit has “significantly” grown by the end of the third quarter as compared to the corresponding quarter of the last fiscal.

“All we can say at this juncture is that our third quarter profit will come to the tune of 1.1 arba as compared to just Rs 94.53 arba of the corresponding quarter,” a senior ADBL official said.  

NIC Asia Bank Limited officials informed that they will publish their third quarter report within a week with a notable profit rise, a highly placed source at the bank said.

Among the much-sought after young commercial banks, Mega Bank is set to announce around Rs 25.5 crore net profit by the end of the third quarter, according to a highly placed source.

“We are also eyeing a net profit to the tune of Rs 32 crore by the fourth quarter,” the source further informed, adding that they will publish the third quarter report within a few days.

Sources at Janata Bank Limited informed that though they have registered profit growth in the third quarter, it will be in the negative terrain as compared to the corresponding quarter of the fiscal year.

“The growth has been stunted by the second quarter negative growth,” the source explained.

There are no substantial grounds to question the growth of the remaining commercial banks, too. The shareholders of even the crisis-ridden Kist Bank Limited, too, can expect respite if the ongoing merger process with Prabhu Bikas Bank comes to fruition.