A Comparative Analysis of Commercial Banks

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About Us:

IMS Investment Management Services Pvt. Ltd. is a service provider for investing in Nepal Capital market through its web portals www.sharesansar.com and www.commoditysansar.com. IMS was established on 7th March, 2011 under the company act of 2063. We are committed to the fundamental principles: Integrity, Service and Performance.

The company principal activities consist of all the clerical, administrativeand research works that are required for investing in the Nepal Stock marketfor its Corporate and Individual clients on a personalized note.

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Our main objective behind publishing this report is to aware general share marketinvestors about the performance of commercial banks in fiscal year 2068/69.

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A Comparative Analysis of Commercial Banks

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Net Profit:

The fiscal year 2068/69 ended, it was the year when the entire banking professionals, analysts and in-vestors was anticipating huge drop in profit levels due to prolong liquidity crisis in early few months of the fiscal year, slow recovery of real estate and margin loan, deteriorating business and political en-vironment, international economic crisis and so on. But with 13.80 percent increment in total net prof-it figure of banking sector, proves all odds wrong. This result proves that Nepalese Banking sector has capacity to survive in crunch situation as well.

The total net profit of overall banking sector stood at Rs. 15.51 billion for the fiscal year 2068/69 com-pared to Rs.13.63 billion of previous fiscal year. Agricultural Development Bank was able to earn

highest net profit among all commercial banks where as Nabil Bank earned highest profit exclud-ing government banks during the review period.

(Figure in ‘000’)

Banks Net Profit (Rs.) Market Share (In %) RankADBL 1,861,031 12.00 1NABIL 1,722,110 11.10 2RBB 1,446,220 9.32 3NIBL 1,318,264 8.50 4SCB 1,168,997 7.54 5

Figure: Net Profit of Top Five Commercial Banks

Fiscal Year 2068/69 Analysis of Commercial Banks

Major’s Highlights of Banking Industry(Figure in ‘000’)

4th Quarter 2068/69

4th Quarter 2067/68

Difference(In Figure)

% Change

Total Net Profit (In Rs.) 15,512,286 13,630,678 1,881,608 13.80%Total Operating Profit Before Provision (In Rs.) 22,743,895 22,197,196 546,699 4.65%Total Net Interest Income (In Rs.) 32,434,958 31,730,597 704,361 2.22%Total Deposits (In Rs.) 867,611,354 698,100,626 169,510,727 24.28%Total Loans and Advances (In Rs.) 614,354,884 520,190,264 94,164,619 18.10%Total Investment (In Rs.) 180,820,227 148,652,387 32,167,840 21.64%Total Provision (In Rs.) 6,326,546 6,508,873 -182,327 -2.80%Write Back from Possible Losses (In Rs.) 6,043,659 5,035,493 1,008,166 20.02%Net Write Back (In Rs.) -282,887 -1,473,380 1,190,493 -80.80%Average CD Ratio (In Rs.) 70.04% 74.56% -4.52% -6.07%Average Non Performing Loan 2.18% 2.59% -0.41% -15.89%Average Cost of Fund 7.99% 8.29% -0.24% -3.60%Average Interest Yield 11.98% 11.76% 0.22% 1.86%Average Net Interest Spread 3.75% 3.53% 0.22% 6.25%Average Earning Per Share (EPS in Rs.) 21.79 26.24 -4.45 -16.96%Average Return on Equity (ROE) 8.72% 10.53% -1.81% -17.17%Average Return on Asset (ROA) 1.26% 1.32% -0.06% -4.37%Average Price-to-Earning (P/E ratio in Times) 14.93 14.92 0.01 0.09%Average Price to Book Ratio (P/B ratio in Times) 1.88 2.17 -0.28 -13.07%Average Networth (In Rs.) 152.51 133.27 19.24 14.44%

A Comparative Analysis of Commercial Banks

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(Figure in ‘000’)

Banks Net Profit (Rs.) Market Share (In %) RankNABIL 1,722,110 11.10 1NIBL 1,318,264 8.50 2SCB 1,168,997 7.54 3EBL 1,090,563 7.03 4HBL 1,052,505 6.78 5

Figure: Net Profit of Top Five Commercial Banks excluding Government Banks

The total market share on net profit of top 5 com-mercial banks was less than 40 percent whereas in the previous fiscal year it stood around 51 percent. This indicates that these banks are slowly los-ing their holds as compared to last year due to in-creasing competitions among commercial banks.

(In %)

Banks Change in Net Profit

Banks Change In Net Profit

Civil Bank 1,931.85 NIC -20.48NBBL 608.77 C&T Bank -32.10Sunrise Bank 228.04 LUMBINI -50.36Mega 193.80 Century Bank -63.68Grand 106.19 NMB -72.89

Figure: Change in Net Profit of Top and Least Five Commercial Banks

During the review period, Civil Bank Limited was able to increase its net profit by 1931.85 percent whereas NMB Bank Limited showed worst perfor-mance, its profit decreases by 72.89 percent. High-est profit earnings banks didn’t appear on this table which indicates that these banks capacity of earning profit is in saturation point and their growth rate is static. As most of the new commercial banks base is small compared to big banks, so their growth rate is higher than compared to old commercial banks. But the profit figure is higher in big banks, this can be understood with this example: US GDP grows by less than 1% which still is in billions whereas other coun-tries GDP grow by 10% but is still less than that of US.

Operating Profit Before Provision:

During the review period, total operating profit before provision of the commercial banks grew by 2.46% to Rs.22.74 billion as compared to previous finan-cial year. It is obvious that growth in operating profit results growth in net profit too but the gap between net profit and operating profit during the 2068/69 fiscal year is less compared to previous year due to more income from non-operating activities, less pro-vision for possible losses, recovery of bad loan etc.

NABIL Bank Limited had the highest operating profit before provision among all the banks during the re-view period whereas Nepal Investment Bank Limited stood second. Civil Bank Limited had the highest growth rate of 168.24% whereas Nepal Bank Limited had a significant decline in operating profit by 50.37%. (Figure in ‘000’)

Banks Operating Profit Before Provision (Rs.)

Market Share (%)

Rank

NABIL 3,076,962 13.53 1NIBL 2,110,097 9.28 2SCB 1,902,402 8.36 3ADBL 1,838,856 8.09 4EBL 1,790,391 7.87 5

Figure: Operating Profit Before Provision of Top FiveCommercial Banks

(In %)

Banks Change in Operating Profit Before Provision

Banks Change in Operat-ing Profit Before Provision

Civil Bank 168.24 RBB -32.08Mega 106.62 Sunrise Bank -37.12GLOBAL IME 40.01 MBL -43.82NABIL 39.71 KIST -48.72Janata 36.58 Nepal Bank -50.37

Figure: Change in Operating Profit Before Provision of Top and Least Five Commercial Banks

Cost of Fund, Net Interest Spread and Net Interest Income:

About a year ago, when the liquidity crisis was at its peak in banking industry, most of the commercial banks had accepted long-term fixed deposits at as high as 14 percent per annum. The reason: these banks were an-ticipating the crisis to drag on for a few years to come. But such anticipation proved to be wrong for the time being. Drastic improvement currently seen in the li-quidity situation of banking sector has pulled down the rate of deposits. But compared to deposit rates, lending rates has not decline in the same ratio because most of the acceptance of long term deposits at higher rates foreseeing prolong liquidity crisis in the country.

On account of improvement in liquidity position of commercial banks, their average cost of funds too de-clined from 8.29% in the previous fiscal year to 7.99% in 2068/69 fiscal year whereas their average net interest spread also improved during the review period which stood at 3.75% compared to 3.53% previous fiscal year.

A Comparative Analysis of Commercial Banks

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However, commercial banks average cost of fund and net interest spread rate did not improve as much as compared to improvement in liquidity condition in the industry principally due to their higher cost-ing deposit in the form of higher yield fixed deposits with long maturity period. It is apparent that decline in average cost of fund and increase in average net interest spread will surely contribute to increase in net interest income of commercial banks. During the review period, Net Interest Income of banking indus-try increased by meager 2.22% compared to last year. Overall Net interest Income stood at Rs.32.43 billion.

(In %)

Banks Cost of Fund Banks Cost of FundSCB 3.44 Bank of Asia 9.63RBB 4.79 MBL 9.84NABIL 4.82 Sanima Bank 9.91Nepal Bank 5.03 Century Bank 10.44NSBI 5.49 Civil Bank 10.52

Figure: Cost of Fund of Top and Least Five Commercial Banks

Most of the big commercial banks have low cost of fund since they were less hit by the liquidity crisis. As a result, they have fewer deposits that yield higher interest rate. Standard Chartered Bank had low cost of fund among all commercial banks i.e 3.44% and Civil Bank had highest cost of fund i.e.10.52%.

(In %)

Banks Net Interest Spread

Banks Net Interest Spread

Nepal Bank 6.19 Civil Bank 2.79NBBL 5.34 NSBI 2.58EBL 5.32 LAXMI 2.50NABIL 5.01 Janata 2.36NIBL 4.50 MBL 1.46

Figure: Net Interest Spread of Top and Least Five Commercial Banks

During the review period, Nepal Bank Limited had highest Net Interest Spread i.e. 6.19% and Machha-puchhre Bank Limited had lowest i.e. 1.46%.

(In %)

Banks Change in Net Interest Income

Banks Change in Net Interest Income

Century Bank 173.09 KIST -15.02Civil Bank 101.64 MBL -15.37Mega 60.31 Sunrise Bank -17.56GLOBAL IME

37.59 Nepal Bank -18.49

Janata 33.50 NBBL -28.96

Figure: Change in Net Interest Income of Top and Least Five Commercial Banks

Deposits:

There is a drastic change in deposits figure during the review period compared to previous fiscal year. At that time there was a huge competition among commercial banks to attract deposits from the mar-ket. Banks had invested millions of rupees under vari-ous advertisement schemes just to pull good deposits from their customers. High competition level led to higher interest rates in deposits.

With the improvement of liquidity crunch, this year there was a whopping 24.28% increment in overall de-posits of commercial banks compared to previous fis-cal year. Now, due to lack of investment sectors most of the commercial banks are hesitant to take huge depos-its from the market. It has come to know that presently commercial banks are even discouraging institutional depositors’ huge amount. This all suggest that situa-tion is contrary to what it was a year before. Currently banking sector is facing liquidity surplus in the market.

An overall deposit of banking sector was Rs.867.61 billion at the end of the fourth quarter of the fiscal year 2068/69. The large amount of deposits help the banks make good profit by mobilizing them in different produc-tive sectors. Consequently, the efficiency and growth of banks lies heavily upon its capacity to increase their investments in productive sectors by attracting higher deposits from public and private institutions.

Like previous fiscal year, this year also Rastriya Banijaya Bank had largest amount of deposits among all commercial banks whereas Nepal Investment Bank Limited lead the race excluding government banks. During the review period, new commercial banks like Century, Civil, Commerz & Trust, Jana-ta had higher deposit growth rate. Since all old big banks were avoiding taking huge deposits at higher rates made the deposit fled to newer banks which helped to improve their ranking in the industry.

(Figure in ‘000’)

Banks Total Deposits (Rs.)

Market Share (In %)

Rank

RBB 87,775,031 10.12 1NIBL 57,010,603 6.57 2Nepal Bank 56,042,591 6.46 3NABIL 54,905,676 6.33 4 NSBI 53,337,265 6.15 5

Figure: Total Deposits of Top Five Commercial Banks

A Comparative Analysis of Commercial Banks

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(In %)

Banks Change in Loan and Advances

Banks Change In Loan and Advances

Century Bank 253.92 BOK 7.59Civil Bank 148.16 NBBL 6.89C&T Bank 124.75 SCB 6.25Janata 108.17 Bank of Asia 5.29Mega 66.38 NIBL 2.45

Figure: Change in Loan and Advances of Top and Least Five Commercial Banks

(In %)

Banks Investment in Real Estate Loan

Banks Investment in Real Estate Loan

Grand 21.30 NSBI 5.04SBL 20.98 C&T Bank 4.89KIST 20.97 RBB 4.81Prime Bank 20.43 Mega 3.91NIBL 18.80 ADBL 0.70

Figure: Investment in Real Estate Loan/Total Provision of Top and Least Five Commercial Banks

Provision is made by commercial banks as per the di-rective of Nepal Rastra Bank against bad loan. The overall provision of possible losses stood at Rs.6.32 billion which has decreased by 2.80% compared to previous fiscal year. The given figure suggest that there was a slow recovery of real estate and margin loans from the market which led to untimely pay-ment of principal amount and interest by clients of commercial banks.

(Figure in ‘000’)

Banks Total Provi-sion (Rs.)

Banks Total Provi-sion (Rs.)

ADBL 2,067,858 Janata 31,570RBB 639,248 LAXMI 31,395MBL 583,739 Century Bank 30,149NABIL 516,588 KIST -NIBL 314,915 Grand -

Figure: Total Provision of Top and Least Five Commercial Banks

Another convinced part during the fiscal year 2068/69 was that figure of write back of pos-sible losses stood at Rs.6.04 billion com-pared to Rs.5.03 billion in previous fiscal year.

(In %)

Banks Change in Deposit

Banks Change in Deposit

Century Bank 228.26 LUMBINI 13.22Civil Bank 198.33 Bank of Asia 12.24C&T Bank 152.51 NABIL 10.68Janata 120.55 SCB -5.35GLOBAL IME

78.77 NMB -31.86

Figure: Change in Deposits of Top and Least Five Commercial Banks

Loans and Advances:

As compared to deposits, loans and advances did not grow at same proportion mainly due to lim-ited investment opportunity provided to bank-ing sector in the economy. In spite of this, there was a satisfactory growth in lending of commer-cial banks i.e. 18.10% during the review period at Rs.614.35 billion. Newer commercial bank had a substantial growth in lending compared to previous fiscal year where as most of old banks had meager growth which can be seen from the table below.

Out of the 32 commercial banks in the country, only 4 banks real estate loan exposure was above limit set by Nepal Rastra Bank i.e. above 25 percent. Grand Bank had the highest percentage of loan exposure in real estate i.e. 21.30% whereas Agriculture Development Bank had the lowest share i.e. 0.70%. But the data reveals that during the review period commercial banks were able to diminish their exposure in real estate sector. There was a significant growth in long term loans of commercial banks i.e. 18.30% during the review period compared to same period of previous fiscal year which signals that more loans were given to project financing for hydropower projects, industrial projects and other manufacturing and service sectorsthat can help in sustainable growth of an overall economy.

(Figure in ‘000’)

Banks Total Loan & Advances (Rs.)

Market Share (In %) Rank

NIBL 42,912,083 6.98 1NABIL 42,867,767 6.98 2RBB 40,448,862 6.58 3ADBL 39,393,095 6.41 4EBL 36,616,832 5.96 5

Figure: Total Loans & Advances of Top Five Commercial Banks

A Comparative Analysis of Commercial Banks

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(Figure in Rs ‘000’)

Banks Write Back from Possible Losses ADBL 2,175,984RBB 994,873MBL 662,545NBBL 402,628NIBL 253,299

Figure: Total Write Back from Possible Losses of Top Five Commercial Banks

Non Performing Loan:

The risk of commercial banks fell during the review period as compared to previous fiscal year. Aver-age non-performing loan decreased by 15.89 per-cent to 2.18 percent in the fiscal year 2068/69. Fig-ure suggests that the banking business environment is slowly improving in the country. Out of 32 com-mercial banks, only 3 banks NPA remained above 5% which is regarded riskier according to NRB dictums.

(In %)

Banks NPA Banks NPARBB 7.27 NSBI 0.54ADBL 6.35 Mega 0.49Nepal Bank 5.23 Sanima Bank 0.48NBBL 4.29 Lumbini 0.47KIST 3.94 Prime Bank 0.47

Figure: NPA of Top and Least Five Commercial Banks

Credit Deposit (CD) Ratio:

Corresponding to NRB directives, the commercial banks are supposed to maintain up to 80 percent CD ratio. Agreeing this, it was only Agricultural Development Bank Limited which comes under NRB radar, whereas all other remaining commercials banks had been able to maintain less than 80 percent CD ratio. The older banks like Standard Chartered, Nepal Bank, Rastriya Banijaya Bank have less than 60 percent CD ratio which intimate that lack of investment opportunity in the market obstruct them of not utilizing fully capacity provided by central bank. Comparatively previous fiscal year the CD ratio of the commercial banks has decreased by 6.07 percentduring the review period.

(In %)

Banks CD Ratio Banks CD RatioADBL 80.76 NMB 65.76KBL 75.63 SCB 59.53SBL 75.40 NBBL 57.34Civil Bank 75.07 Nepal Bank 55.89Century Bank 74.79 RBB 48.71

Figure: CD Ratio of Top and Least Five Commercial Banks

Earnings per Share (EPS) and Return on Equity (ROE):

The significance of EPS is obvious, as the viability of any business depends on the income it can gener-ate. Earnings per share allow us to compare different companies’ power to make money. During the review period, the average EPS of commercial banks was Rs.21.79, decline by 16.96 percent whereas out of 32 commercial banks only 11 banks were able to earn above industry average. During the review period, growth in paid up capital of commercial banks in the form of right and bonus share have led to reduce in av-erage EPS of the banks regardless of overall increment in net profit during the same period. Nabil Bank Lim-ited had the highest EPS i.e. Rs.84.84 whereas Centu-ry Commercial Bank had the lowest EPS of Rs.0.28.

(In Rs)

Banks EPS Banks EPSNABIL 84.84 Janata 2.87EBL 78.37 Civil Bank 1.97SCB 72.60 C&T Bank 1.10HBL 43.85 MBL 0.44NIBL 43.75 Century Bank 0.28

Figure: EPS of Top and Least Five Commercial Banks

The average return on equity was 8.72% compared to 10.53% of previous fiscal year. This shows that commercial banks had not been able to increase their profit in the ratio of their paid up capital growth. While on the contrary, investors can expect less re-turn than previous fiscal year. ROE is one of the best financial performance indicators of a company. The mandatory requirement of NRB to rise paid up capital of commercial banks up to Rs 2 billion, has hit banking sector hard on their EPS and ROE.

(In %)

Banks ROE Banks ROENABIL 27.36 C&T Bank 1.07EBL 25.99 MBL 0.41NBBL 24.69 Century Bank 0.26SCB 24.12 Nepal Bank -15.19HBL 20.85 RBB -51.70

Figure: ROE of Top and Least Five Commercial Banks

A Comparative Analysis of Commercial Banks

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Conclusion:

Fiscal year 2068/69 ended with a positive note. Commercial Banks were able to increase their net profit which was not expected at the beginning of reviewed year. A liquidity crisis which was the major obstacle in starting few months had gradually turned to be improving in the banking sector. NPA seems to be in declining trend, growing remittance flow due to all time high of US dollar and increase in confidence towards commercial banks due to downfall of finance companies and cooperativeswill surely promote favorable banking environmentin comingfiscal year.

Higher liquidity surplus in banking system resulted in lower cost of fund paired with wider net interest spread will surely boost profits of commercial banks in coming years. Consequently, investors are hoping good return this year, which is also pictured from the Nepse levels of last one year.

Low growth of businesses in real terms, lack of implementation of big projects, delay in decision making process and non availability of full year budget are creating a major problem in the progress of banking sector in the economy. There is also heightening competition among banks and financial institutions which is very well coped by the Central bank by issuing merger policies among each other, incline to create a positive impact in the long termof banking industry.

The unstable political situation coupled with low eco-nomic growth, widening trade deficit, high inflation continued to remain the major challenges during this fiscal year. The overall growth of the banking system is satisfactory taking in note the number of problem faced by the country last fiscal year. However, the number of steps taken by the NRB to address the problem faced by commercial bank is a positive sign and this will surely result good performance in the future.

Price to Earnings Ratio, Price to Book Ratio and Net worth:

The P/E ratio gives you an idea of what the market is willing to pay for the company’s earnings. The higher the P/E the more the market is willing to pay for the company’s earnings. Some investors read a high P/E as an overpriced stock and that may be the case, however it can also indicate the market has high hopes for this stock’s future and has bid up the price. The overall average P/E ratio of bank-ing industry was 14.93 times compared to 14.92 of previous fiscal year which indicates that the price of commercial banks in secondary market are cor-rectly valued (P/E ratio around 10-15 is regarded as correctly values as per international standard). Out of 32 commercial banks, 15 companies P/E ratio was above average level.

Price-to-book ratio is another ratio which is used to find undervalue securities. It is just a ratio of market price of a company’s shares (share price) over its book value of stock. Standard Chartered Bank had highest P/B ratio of 5.98 whereas Nepal Bangladesh Bank had lowest P/B ratio of 0.85 times.

(In Times)

Banks PE Ratio Banks PE RatioNMB 57.81 NIBL 11.68Sanima Bank 37.49 NCCB 10.02NSBI 27.96 GLOBAL 9.90SCB 24.78 ADBL 7.94KIST 24.14 NBBL 3.46

Figure: P/E ratio of Top and Least Five Commercial Banks

(In Times)

Banks PB Ratio Banks PB RatioSCB 5.98 KIST 1.08NABIL 4.37 ADBL 1.03NSBI 4.03 MBL 1.00EBL 3.43 NCCB 0.91BOK 3.31 NBBL 0.85

Figure: P/B ratio of Top and Least Five Commercial Banks

( In Rs )

Banks NetworthNABIL 310.09EBL 301.57SCB 301.01NIBL 215.06HBL 210.33

Figure: Net worth of Top Five Commercial Banks

A Comparative Analysis of Commercial Banks

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Annexure

Paid up capital(Figure in Rs ‘000’)

ADBL 9,474,300RBB 5,497,610NIBL 3,012,924MBL 2,478,795HBL 2,400,000Prime Bank

2,245,746

GLOBAL IME

2,184,812

Citizen Bank

2,101,840

NSBI 2,093,990NABIL 2,029,769Sanima Bank

2,016,000

Sunrise Bank

2,015,000

NBBL 2,009,396Janata 2,000,000KIST 2,000,000NMB 2,000,000Grand 2,000,000Bank of Asia

2,000,000

Nepal Bank

1,772,828

LAXMI 1,694,081Mega 1,631,000SBL 1,619,244SCB 1,610,168BOK 1,604,187KBL 1,603,800LUMBINI 1,430,000C&T Bank 1,400,000NCCB 1,400,000EBL 1,391,636NIC 1,311,552Civil Bank 1,200,000Century Bank

1,080,000

Reserve(Figure in Rs ‘000’)

ADBL 4,849,278NABIL 4,264,398NIBL 3,466,649SCB 3,236,606EBL 2,805,114HBL 2,647,984BOK 1,438,664NSBI 1,203,692NIC 1,080,993KBL 885,658NBBL 838,000LAXMI 780,234SBL 700,386LUMBINI 612,613GLOBAL IME

592,517

Prime Bank

580,754

NCCB 527,972Bank of Asia

375,333

Citizen Bank

355,093

Grand 301,552Sunrise Bank

277,678

NMB 272,755KIST 243,567Sanima Bank

223,676

MBL 168,196Mega 152,257Janata 134,237Century Bank

77,767

C&T Bank 38,984Civil Bank 28,273Nepal Bank

-4,450,239

RBB -8,294,989

Deposit(Figure in Rs ‘000’)

RBB 87,775,031NIBL 57,010,603Nepal Bank

56,042,591

NABIL 54,905,676NSBI 53,337,265EBL 50,006,101HBL 47,730,994ADBL 43,238,985SCB 35,965,631GLOBAL IME

26,933,768

SBL 25,948,506BOK 24,991,449Prime Bank

23,990,953

LAXMI 22,715,599NIC 22,111,851KBL 21,985,199MBL 21,545,280KIST 20,173,994Sunrise Bank

18,756,490

Citizen Bank

17,354,535

NBBL 16,952,703NCCB 16,485,357NMB 15,965,434Bank of Asia

15,351,206

Grand 15,023,186Sanima Bank

11,178,734

Mega 9,192,557Civil Bank 8,807,545Janata 7,722,767LUMBINI 7,668,600C&T Bank 6,282,049Century Bank

4,460,715

Loan and Advances(Figure in Rs ‘000’)

NIBL 42,912,083NABIL 42,867,767RBB 40,448,862ADBL 39,393,095EBL 36,616,832HBL 35,968,473Nepal Bank

29,698,857

NSBI 26,142,094GLOBALIME

20,764,483

SBL 20,217,584SCB 19,828,508BOK 19,319,137Prime Bank

19,036,778

KBL 17,877,542NIC 17,242,307LAXMI 16,701,214MBL 16,105,660KIST 14,966,533Citizen Bank

14,415,394

Sunrise Bank

14,380,598

NCCB 12,900,602NMB 12,468,479Bank of Asia

12,255,021

Grand 11,426,710NBBL 10,943,161Sanima Bank

9,530,237

Mega 7,933,536Civil Bank 7,751,525Janata 7,461,289LUMBINI 6,979,191C&T Bank 5,599,146Century Bank

4,202,186

A Comparative Analysis of Commercial Banks

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Net Write Back(Figure in Rs ‘000’)

RBB 355,625NBBL 331,663Nepal Bank

321,925

ADBNL 108,126Sunrise Bank

81,228

MBL 78,806HBL 74,293Grand 21,636KIST 14,642LUMBINI 14,086GLOBAL IME

14,050

NSBI 13,683 NCCB -7,590SCB -17,288BOK -17,852Century Bank

-30,149

LAXMI -30,851Janata -31,570C&T Bank -31,579Citizen Bank

-46,291

Civil Bank -46,747 NIC -49,309Sanima Bank

-52,835

Bank of Asia

-56,713

NIBL -61,616Mega -66,122 Prime Bank

-89,573

EBL -101,706 SBL -147,426KBL -184,591NMB -263,052NABIL -379,790

Net Profit(Figure in Rs ‘000’)

ADBL 1,861,031NABIL 1,722,110RBB 1,446,220NIBL 1,318,264SCB 1,168,997EBL 1,090,563HBL 1,052,505NBBL 702,901BOK 607,661NSBI 475,628Nepal Bank

406,727

NIC 394,200LAXMI 358,834GLOBAL IME

353,051

Prime Bank

338,566

SBL 330,457KBL 275,619Citizen Bank

222,974

Bank of Asia

220,891

LUMBINI 193,442Grand 183,667NCCB 176,113Sunrise Bank

146,614

Sanima Bank

120,985

KIST 100,232Mega 71,460NMB 62,272Janata 57,362Civil Bank 23,671C&T Bank 15,457MBL 10,818Century Bank

2,994

Net Worth(Figure in Rs )

NABIL 310.09EBL 301.57SCB 301.01NIBL 215.06HBL 210.33BOK 189.68NIC 182.42NSBI 157.48KBL 155.22ADBL 151.18LAXMI 146.06SBL 143.25LUMBINI 142.84NBBL 141.70NCCB 137.71GLOBAL IME

127.12

Prime Bank

125.86

Bank of Asia

118.77

Citizen Bank

116.89

Grand 115.08Sunrise Bank

113.78

NMB 113.64KIST 112.18Sanima Bank

111.10

Mega 109.34Century Bank

107.20

MBL 106.79Janata 106.71C&T Bank 102.78Civil Bank 102.36RBB -50.88Nepal Bank

-151.02

CD Ratio(Figure in %)

ADBL 80.76%KBL 75.63%SBL 75.40%Civil Bank 75.07%Century Bank

74.79%

NABIL 74.69%Janata 74.56%Citizen Bank

74.40%

NIC 73.70%LUMBINI 73.09%NSBI 73.09%Mega 72.82%Sunrise Bank

72.81%

Prime Bank

72.51%

Sanima Bank

72.19%

C&T Bank 72.12%NIBL 72.00%Bank of Asia

71.69%

NCCB 71.51%LAXMI 71.41%GLOBAL IME

71.37%

EBL 69.84%BOK 69.19%HBL 67.99%Grand 67.82%KIST 66.89%MBL 66.63%NMB 65.76%SCB 59.53%NBBL 57.34%Nepal Bank

55.89%

RBB 48.71%

A Comparative Analysis of Commercial Banks

10

ROE(Figure in Rs %)

NABIL 27.36%EBL 25.99%NBBL 24.69%SCB 24.12%HBL 20.85%NIBL 20.34%BOK 19.97%NIC 16.48%LAXMI 14.50%NSBI 14.42%SBL 14.25%ADBL 12.99%GLOBALIME

12.71%

Prime Bank

11.98%

KBL 11.07%LUMBINI 9.47%Bank of Asia

9.30%

NCCB 9.13%Citizen Bank

9.08%

Grand 7.98%Sunrise Bank

6.39%

Sanima Bank

5.40%

KIST 4.47%Mega 4.01%NMB 2.74%Janata 2.69%Civil Bank 1.93%C&T Bank 1.07%MBL 0.41%Century Bank

0.26%

Nepal Bank

-15.19%

RBB -51.70%

P/E Ratio(Figure in Times)

NMB 57.81Sanima Bank

37.49

NSBI 27.96SCB 24.78KIST 24.14Grand 23.41Citizen Bank

21.68

Bank of Asia

20.64

Sunrise Bank

17.18

BOK 16.58LAXMI 16.05NABIL 15.97LUMBINI 15.75Prime Bank

15.72

NIC 15.57HBL 14.89KBL 14.08EBL 13.18SBL 12.01NIBL 11.68NCCB 10.02GLOBAL IME

9.90

ADBL 7.94NBBL 3.46RBB 0.00Nepal Bank

0.00

Mega 0.00Civil Bank 0.00C&T Bank 0.00Century Bank

0.00

MBL -Janata -

ROA(Figure in Rs %)

NBBL 3.40%SCB 2.79%NABIL 2.67%ADBL 2.61%BOK 2.07%NIBL 1.97%EBL 1.93%LUMBINI 1.92%HBL 1.90%NIC 1.54%RBB 1.44%LAXMI 1.37%Bank of Asia

1.23%

Prime Bank

1.23%

GLOBAL IME

1.13%

SBL 1.12%Citizen Bank

1.10%

KBL 1.08%Grand 1.04%NCCB 0.90%Sanima Bank

0.88%

NSBI 0.82%Nepal Bank

0.71%

Sunrise Bank

0.69%

Mega 0.63%Janata 0.56%KIST 0.44%NMB 0.33%Civil Bank 0.22%C&T Bank 0.20%Century Bank

0.05%

MBL 0.04%

A Comparative Analysis of Commercial Banks

11

Corporate Clients

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