Financial Performance of Nepal's Commercial Banks: An Overview

In the latest financial report, Nepal's commercial banks have demonstrated a range of performances in key financial metrics. The data highlights net profit, earnings per share (EPS), return on equity (ROE), book value, distributable profit, and distributable EPS for 19 banks. This comprehensive analysis provides valuable insights into the financial health and dividend potential of these institutions.

In the current fiscal year, half a dozen commercial banks are not in a position to distribute dividends to shareholders. According to the unpublished financial details of the last fiscal year disclosed by the banks, the distributable profit of 4 banks is negative, and some banks are also unable to distribute dividends due to not making capital reserves in the previous fiscal year.

According financial report, NIMB bank, Himalayan Bank, Nic Asia and Kumari Bank doesn't support to distribute dividend to their shareholders.

Like wise , NMB bank -1.3% , Siddhartha Bank - 2.9%, Global IME bank-3.06%, Machapuchhera Bank and Citizens bank distribute 4% dividend to their shareholders.

Among all commercial bank, Everest bank will distribute more dividend about 29%, SCB bank- 26.5%, Agriculture Development Bank - 19.79%, NABIl bank - 14.26%

Key Financial Metrics

Net Profit:

The highest net profit is reported by NABIL Bank (706.00), followed by PRVU (448.08) and GBIME (601.62).

On average, the net profit of the banks stands at 318.05.

Earnings Per Share (EPS):

SCB leads with an EPS of 35.09, followed by EBL (31.44) and NABIL (26.09).

The average EPS across the banks is 17.59.

Return on Equity (ROE):

SCB again tops the list with an ROE of 16.09%, followed by EBL (13.32%) and PRVU (12.3%).

The average ROE among the banks is 9.41%.

Book Value:

NBL has the highest book value at 257.57, followed by ADBL (235.8) and EBL (236.06).

The average book value is 185.35.

Distributable Profit and EPS:

NABIL Bank also excels in distributable profit (385.73) and distributable EPS (14.26).

The overall average distributable profit is 37.06, with an average distributable EPS of 4.34.

Dividend History

Historically, NABIL Bank has been a consistent performer in terms of dividends, providing investors with a steady return. Last year, NABIL distributed a dividend of 11% to its shareholders, showcasing its commitment to rewarding investors. The current financial year's performance indicates a similar trend, with expectations of maintaining or improving the dividend distribution.

Conclusion

The financial data underscores the robust performance of Nepal's leading commercial banks. Institutions like NABIL, SCB, and EBL are at the forefront, delivering strong profits and returns on equity. For investors, these banks not only offer solid financial performance but also a promising outlook for dividends, making them attractive options for both stability and growth.

Future Outlook

As we move forward, the stability and growth potential of these banks will be closely watched. Factors such as market conditions, regulatory changes, and economic developments will play crucial roles in shaping their future performance. Investors should stay informed about these dynamics to make well-informed decisions.

By keeping a close eye on these financial metrics and historical performance, investors can better understand the potential returns and risks associated with investing in Nepal's commercial banks.