Commercial Bank; First Quarter Report - Nepal Stock Market Update Analysis

Commercial Banks have generated high profit in the first quarter of this fiscal year as compared to the corresponding period of the previous fiscal year.  Profit generation in the last fiscal year was slightly affected due to spillover effect of the earthquake. 

As per the unaudited financial reports of the first quarter published by 28 banks, Nepal Bank Limited (NBL) has topped the list with total profit of Rs 1166.08 million as compared to Rs 444.36 million of the corresponding period of the previous fiscal year. NABIL stands in 2^nd position according to profit made in the first quarter.

Table 1: Nepal Stock Market (Net Profit Analysis)

S.N	Name	Paid Up Capital (Q1)	Reserve & Surplus	Net '000'  Profit (Q1)		Increase	EPS (Rs)
		Rs in '000'	Rs in '000'	This Quarter	Corresponding Previous Q1	%	Annualized
1	Nepal Bank	6,499,478.00	1,534,512.00	1,166,084.00	444,366.00	162.41	71.76
2	Nabil Bank	6,183,540.00	6,207,884.00	798,365.00	653,509.00	22.16	50.67
3	NIB	8,706,612.00	8,321,939.00	740,800.00	423,834.00	74.78	34.03
4	Everest Bank	2,742,604.00	6,383,001.00	513,421.00	363,703.00	41.16	77.13
5	Rastriya Banijya B	8,588,972.00	1,234,778.00	500,832.00	603,960.00	(17.07)
6	Himalayan Bank	4,964,357.00	4,813,778.00	438,461.00	322,785.00	35.83	38.98
7	ADBL	10,374,400.00	9,860,800.00	422,391.00	288,680.00	46.31	36.91
8	Global IME Bank	7,150,550.00	1,976,100.00	420,933.00	313,565.00	34.24	23.55
9	Siddhartha Bank	3,375,119.00	3,589,818.00	359,676.00	172,036.00	109.07	47.61
10	Nepal SBI Bank	3,883,736.00	3,448,238.00	354,178.00	302,071.00	17.24	36.48
11	NMB Bank	5,430,062.00	2,445,788.00	353,685.00	142,855.00	147.58	31.46
12	Standard Chartered	2,812,426.00	5,110,514.00	349,424.00	345,245.00	1.21	49.70
13	Citizen Bank	5,537,352.00	1,648,217.00	345,157.00	142,780.00	141.74	24.93
14	Prabhu Bank	5,881,402.00	554,723.00	282,464.00	261,701.00	7.93	4.80
15	Sanima Bank	5,278,997.00	1,015,647.00	271,622.00	176,844.00	53.59	20.19
16	BOKL	4,576,891.00	4,206,366.00	270,974.00	168,748.00	60.57	23.68
17	NICA Bank	5,819,650.00	2,187,598.00	261,046.00	157,391.00	65.85	17.90
18	Sunrise Bank	5,301,396.00	1,096,387.00	253,116.00	117,802.00	114.86	19.10
19	Prime Commercial	3,705,262.26	2,006,816.57	251,058.14	220,598.01	13.80	27.10
20	Machhapuchhre Bank	4,666,430.00	920,723.00	246,951.00	173,124.00	42.64	21.17
21	Nepal Bangladesh B	4,011,759.00	2,252,594.00	225,019.00	124,892.00	80.17	22.00
22	Laxmi Bank	3,039,229.00	3,447,178.00	156,872.00	110,347.00	42.16	17.88
23	Mega Bank	3,240,575.00	2,609,600.00	146,947.00	84,348.00	74.21	17.80
24	Kumari Bank	2,690,000.00	1,500,000.00	137,400.00	48,600.00	182.71	31.49
25	NCC Bank	2,353,176.00	1,533,049.00	129,027.00	127,127.00	1.49	21.69
26	Century Bank	2,840,800.00	2,120,000.00	74,274.00	74,224.00	0.06	10.46
27	Janata Bank	2,060,000.00	682,665.00	63,978.00	57,553.00	11.16	12.42
28	Civil Bank	3,082,779.00	537,904.00	17,102.00	58,753.00	(70.89)	1.85

The profit of commercial banks increased significantly because of expanding credit as their capacity to float loans increased along with NRB's mandatory provision to increase capital by four folds.

Kumari Bank is the forerunner as the bank's profit grew by 182.71 percent in the first quarter of the fiscal year 2073-74. Bank's net profit  has increased to Rs. 13.74 crore in Q1 as compared to Rs 4.86 crore in the corresponding quarter.

Table 2: Nepal Stock Market (Net Profit Growth % Analysis)

S.N	Name	Paid Up Capital (Q1)	Reserve & Surplus	Net '000'  Profit (Q1)		Increase	EPS (Rs)
		Rs in '000'	Rs in '000'	This Quarter	Corresponding Previous Q1	%	Annualized
1	Kumari Bank	2,690,000.00	1,500,000.00	137,400.00	48,600.00	182.71	31.49
2	Nepal Bank	6,499,478.00	1,534,512.00	1,166,084.00	444,366.00	162.41	71.76
3	NMB Bank	5,430,062.00	2,445,788.00	353,685.00	142,855.00	147.58	31.46
4	Citizen Bank	5,537,352.00	1,648,217.00	345,157.00	142,780.00	141.74	24.93
5	Sunrise Bank	5,301,396.00	1,096,387.00	253,116.00	117,802.00	114.86	19.10
6	Siddhartha Bank	3,375,119.00	3,589,818.00	359,676.00	172,036.00	109.07	47.61
7	Nepal Bangladesh B	4,011,759.00	2,252,594.00	225,019.00	124,892.00	80.17	22.00
8	NIB	8,706,612.00	8,321,939.00	740,800.00	423,834.00	74.78	34.03
9	Mega Bank	3,240,575.00	2,609,600.00	146,947.00	84,348.00	74.21	17.80
10	NICA Bank	5,819,650.00	2,187,598.00	261,046.00	157,391.00	65.85	17.90
11	BOKL	4,576,891.00	4,206,366.00	270,974.00	168,748.00	60.57	23.68
12	Sanima Bank	5,278,997.00	1,015,647.00	271,622.00	176,844.00	53.59	20.19
13	ADBL	10,374,400.00	9,860,800.00	422,391.00	288,680.00	46.31	36.91
14	Machhapuchhre Bank	4,666,430.00	920,723.00	246,951.00	173,124.00	42.64	21.17
15	Laxmi Bank	3,039,229.00	3,447,178.00	156,872.00	110,347.00	42.16	17.88
16	Everest Bank	2,742,604.00	6,383,001.00	513,421.00	363,703.00	41.16	77.13
17	Himalayan Bank	4,964,357.00	4,813,778.00	438,461.00	322,785.00	35.83	38.98
18	Global IME Bank	7,150,550.00	1,976,100.00	420,933.00	313,565.00	34.24	23.55
19	Nabil Bank	6,183,540.00	6,207,884.00	798,365.00	653,509.00	22.16	50.67
20	Nepal SBI Bank	3,883,736.00	3,448,238.00	354,178.00	302,071.00	17.24	36.48
21	Prime Commercial	3,705,262.26	2,006,816.57	251,058.14	220,598.01	13.80	27.10
22	Janata Bank	2,060,000.00	682,665.00	63,978.00	57,553.00	11.16	12.42
23	Prabhu Bank	5,881,402.00	554,723.00	282,464.00	261,701.00	7.93	4.80
24	NCC Bank	2,353,176.00	1,533,049.00	129,027.00	127,127.00	1.49	21.69
25	Standard Chartered	2,812,426.00	5,110,514.00	349,424.00	345,245.00	1.21	49.70
26	Century Bank	2,840,800.00	2,120,000.00	74,274.00	74,224.00	0.06	10.46
27	Rastriya Banijya B	8,588,972.00	1,234,778.00	500,832.00	603,960.00	(17.07)
28	Civil Bank	3,082,779.00	537,904.00	17,102.00	58,753.00	(70.89)	1.85

Likewise, Nepal Bank, NMB Bank, Citizen Bank, Sunrise Bank, Siddhartha Bank, Everest Bank &Nepal Bangladesh Bank Limited has also increased net profit by 162.41%, 147.58%, 141.74%, 114.86%, 109.07%, 94.69% & 80.17% respectively in the first quarter. CZBIL'S net profit has raised to Rs 34.51 crore from Rs 14.27 crore where as NBB's net interest income has raised to Rs 32.94 crore in Q1 from Rs 19.64 crore in the corresponding quarter of the previous fiscal year.

Nabil Bank Limited has posted a modest net profit increment by 22.16% in the first quarter of the current year fiscal year 2073-74. The Bank has extended loan of Rs 67.43 arba in the corresponding quarter of the previous fiscal year.

Likewise, Citizens Bank, Siddhartha Bank and Sunrise Bank doubled their profit in the first quarter of this fiscal year as compared to the previous fiscal year.

Everest Bank (EBL) has also posted impressive profit rise of 41.16% in the fisrt quarter of the current fiscal year.  As compared to earnings per share (EPS), EBL stands in the first position with EPS Rs 77.13, Nepal Bank in 2^nd postion with EPS Rs 71.76, Nabil in 3^rd position with EPS Rs 50.67 respectively.

Table 3: Nepal Stock Market (Earning Per Share Analysis)

S.N	Name	Paid Up Capital (Q1)	Reserve & Surplus	Net '000'  Profit (Q1)		Increase	EPS (Rs)
		Rs in '000'	Rs in '000'	This Quarter	Corresponding Previous Q1	%	Annualized
1	Everest Bank	2,742,604.00	6,383,001.00	513,421	363,703	41.16	77.13
2	Nepal Bank	6,499,478.00	1,534,512.00	1,166,084	444,366	162.41	71.76
3	Nabil Bank	6,183,540.00	6,207,884.00	798,365.00	653,509.00	22.16	50.67
4	Standard Chartered	2,812,426.00	5,110,514.00	349,424	345,245	1.21	49.70
5	Siddhartha Bank	3,375,119.00	3,589,818.00	359,676.00	172,036.00	109.07	47.61
6	Himalayan Bank	4,964,357.00	4,813,778.00	438,461	322,785	35.83	38.98
7	ADBL	10,374,400.00	9,860,800.00	422,391	288,680	46.31	36.91
8	Nepal SBI Bank	3,883,736.00	3,448,238.00	354,178.00	302,071.00	17.24	36.48
9	NIB Bank	8,706,612.00	8,321,939.00	740,800.00	423,834.00	74.78	34.03
10	Kumari Bank	2,690,000.00	1,500,000.00	137,400	48,600	182.71	31.49
11	NMB Bank	5,430,062.00	2,445,788.00	353,685.00	142,855.00	147.58	31.46
12	Prime Commercial	3,705,262.26	2,006,816.57	251,058.14	220,598.01	13.80	27.10
13	Citizen Bank	5,537,352.00	1,648,217.00	345,157.00	142,780.00	141.74	24.93
14	BOKL	4,576,891.00	4,206,366.00	270,974	168,748	60.57	23.68
15	Global IME Bank	7,150,550.00	1,976,100.00	420,933.00	313,565.00	34.24	23.55
16	Nepal Bangladesh B	4,011,759.00	2,252,594.00	225,019.00	124,892.00	80.17	22.00
17	NCC Bank	2,353,176.00	1,533,049.00	129,027	127,127	1.49	21.69
18	Machhapuchhre Bank	4,666,430.00	920,723.00	246,951.00	173,124.00	42.64	21.17
19	Sanima Bank	5,278,997.00	1,015,647.00	271,622.00	176,844.00	53.59	20.19
20	Sunrise Bank	5,301,396.00	1,096,387.00	253,116.00	117,802.00	114.86	19.10
21	NICA Bank	5,819,650.00	2,187,598.00	261,046.00	157,391.00	65.85	17.90
22	Laxmi Bank	3,039,229.00	3,447,178.00	156,872.00	110,347.00	42.16	17.88
23	Mega Bank	3,240,575.00	2,609,600.00	146,947	84,348	74.21	17.80
24	Janata Bank	2,060,000.00	682,665.00	63,978.00	57,553.00	11.16	12.42
25	Century Bank	2,840,800.00	2,120,000.00	74,274.00	74,224.00	0.06	10.46
26	Prabhu Bank	5,881,402.00	554,723.00	282,464.00	261,701.00	7.93	4.80
27	Civil Bank	3,082,779.00	537,904.00	17,102.00	58,753.00	(70.89)	1.85
28	Rastriya Banijya B	8,588,972.00	1,234,778.00	500,832.00	603,960.00	(17.07)

Nepal Stock Market  assumes that the financial reports of Commercial Banks hint towards the possibility that profit of class 'A' financial institutions of the country will increase substantially in the first quarter of this fiscal.