Commercial Banks of Nepal: Net Profit upto second quarter FY 2075/76

Currently there are 27 commercial banks in Nepal. 

Let’s look how they performed up to second quarter of Fiscal Year 2076/77.

Note: In above data, Janata Bank's Net Profit is excluded from calculation as it recently merged with Global IME Bank to depict true position of Global IME bank.

Highest Net Profit: As we can see, Rastriya Banijya Bank earned the highest Net Profit i.e. Rs. 2.20 arba among the existing commercial banks of Nepal up to the second quarter of FY 2076/77 followed by Nabil Bank in second position which posted a net profit of Rs. 2.04 arba up.

Lowest Net Profit: Civil bank reported the lowest Net profit up to the second quarter of FY 2076/77 i.e. Rs. 31.6 crore followed by Citizens Bank International with the net profit of Rs. 68.7 crore.

Rate of change in Net Profit: NMB bank’s net profit in this second quarter of FY 2076/77 increased by 47% in comparison to the net profit of second quarter of FY 2075/76. Nepal Bank’s net profit declined by 18% in comparison to its net profit of same quarter last year.

Industry Average Analysis

The average Net Profit of the commercial banking sector for this fiscal year remains at Rs. 1.22 arba which was Rs. 1.12 arba in the second quarter of last fiscal year. As a result, the average Net profit of the entire commercial banking industry increased by 10.77%.

Among 27 commercial banks, Only 10 of them earned higher Net Profit than the industry average Net Profit of Rs. 1.22 arba in this quarter.

Post Merger of GBIME and JBNL

Let’s look at the Net Profit and current market prices at once

                                                               Price is as of March 1, 2020

Note: Global IME Bank recently merged with Janata Bank due to which it is among one of the top Profit earning commercial bank with least stock price but it’s No of shares are almost double than other banks. So don’t think it is less priced looking at the table

The information are collected through secondary sources. So the author doesnot take the guarantee of the accuracy of the data

This article is for Informational purpose only. Investors are informed not to use this solely to make investment decisions. Invest wisely