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  Performance of Commercial Banks as of Q4-FY65/66
Monday - 2nd November, 2009 | ResCon
 
 

Research @ ResCon:

The Accumulated Net Profit summary of the Commercial Bank Group is given below.

Up to Q4 of 2065/66:                              Rs 11.600 billion
Average Net Profit at Q4 2064/65:          Rs 552.400 million

Up to Q4 of 2064/65:                              Rs 8.422 billion
Average Net Profit at Q4 2064/65:          Rs 350.930 million

Increment in Net Profit:                          114%

Please note that the table below comprises of figures of all the commercial banks (listed, not listed and government-owned banks) except for DCBL, Sunrise & Lumbini (these banks are yet to publish their financial statements).

  1. The 4th Quarter of FY 2065/66 unaudited Net Profit figures of Commercial Bank group clearly show that commercial banks, in general, performed well this quarter as compared to corresponding quarter of the previous year.

  2. On an average, commercial banks’ profit advanced by 114% this year. The group accumulated Rs 11.600 billion in net profit this quarter compared to Rs 8.422  billion net profit in the corresponding previous year.

  3. The net profit of each bank is 552.40 million on an average.

  4. Bank of Asia’s, Prime Commercial Bank and Nepal Bangladesh Bank have highest net profit advancement. Their profit figures have exceptionally increased by 1279%, 406% and 209% respectively over the corresponding previous quarter.

  5. NMB Bank, Nepal Credit and Commerce and Global banks are the only banks that have profit figures in the negative zone.

  6. Nepal Bangladesh Bank has posted the highest net profit amount of Rs 2.472 billion. Other followers are Rastriya Banijya Bank, Nabil Bank and Standard Chartered Bank respectively.

Amount in Rs/million

#

Company FY 2065/66
(Upto 4th Qtr)
FY 2064/65
(Upto 3rd Qtr)
Change
1 Bank of Asia Nepal  61.51 4.461 1279%
2 Prime Commercial Bank  141.777 28.007 406%
3 Nepal Bangladesh Bank  2472.19 800.408 209%
4 KIST Bank 88.376 47.271 87%
5 Citizen Bank  95.81 54.841 75%
6 Laxmi Bank  186.169 120.031 55%
7 Siddhartha Bank  215.602 143.173 51%
8 Kumari Bank  258.462 174.93 48%
9 Everest Bank  624.068 451.218 38%
10 Nabil Bank  1031.05 746.468 38%
11 Nepal SBI Bank  334.35 247.771 35%
12 Nepal Investment Bank  914.575 696.732 31%
13 Nepal Industrial & Commercial Bank  316.646 243.058 30%
14 Bank of Kathmandu  461.507 361.499 28%
15 Standard Chartered Bank  1028.28 818.921 26%
16 Himalayan Bank  742.425 635.869 17%
17 Rastriya Banijya Bank  2032.23 1770.554 15%
18 Machhapuchchhre Bank  92.935 85.016 9%
19 NMB Bank  61.339 72.822 -16%
20 Nepal Credit & Com. Bank  410.621 498.755 -18%
21 Global  Bank  30.488 61.234 -50%
22 DCBL Bank  N/A 58.749 N/A
23 Sunrise Bank  N/A -27.209 N/A
24 Lumbini Bank  N/A 327.649 N/A
Total 11,600.41 8,422.23 2392%
Average 552.4 350.93 114%

Such a phenomenal growth in Quarter to Quarter net profit indicates that our commercial banks are performing well amidst the global financial crisis. However, the challenge now is to sustain the growth and stability during these recessionary times.

ResCon Tip-Off:

We know that there exists a strong positive correlation between Earnings and Market Share Price figures. That is, if earnings’ figure of a company increases, the share price of the company will increase too. But in case of the Nepalese commercial banks, we are not seeing the same phenomenon. In spite of better performance, the share prices of most of the commercial banks are down.

If you are someone who follows Warren Buffett, you will certainly know that the market price of a company must always address the fundamentals of that company. In our case, there are some good commercial banks which are undervalued currently. These banks’ share prices will definitely go up in the future. All you need to do is put on your thinking cap and choose the correct one.
Well if you think you need some professional help, let us know.