Profit and Expected Dividend of 13 Commercial Banks of Nepal
August 8, 2019 | Investopaper
Commercial Banks of Nepal are in the process of publishing the fourth quarter report of fiscal year 2075/76. After the completion of the fiscal year, the banks will announce dividends to the shareholders. So, the recent report can be a guideline for what an investor can expect in dividends from the profit of 2075/76.
Until now, 13 commercial banks have already published the report. We have compiled the profit of the commercial banks and expected dividends of these banks for your ease.
Note:
—This material is based on the unaudited fourth-quarter report of the fiscal year 2075/76.
—The audit report may vary. So, will the dividend rate.
—Only 13 commercial banks data are included.
The table below shows the paid-up capital, profit and distributable profit of the 13 commercial banks. Agricultural Development Bank (ADBL) leads in profit with Rs. 4.35 Arba. Everest Bank and Global IME Bank follow along with Rs. 3.05 Arba and Rs. 2.80 Arba respectively.
Profit of Commercial Banks of Nepal
| S.N | COMMERCIAL BANK | PAID-UP CAPITAL (Rs. In Arba) | PROFIT (Rs. In Arba) | DISTRIBUTABLE PROFIT (Rs. In Arba) |
| 1 | Agricultural Development Bank | 9.02 | 4.35 | 3.31 |
| 2 | Nepal Bank | 9.81 | 2.61 | 3.45 |
| 3 | Everest Bank | 8.11 | 3.05 | 2.19 |
| 4 | Global IME | 10.31 | 2.8 | 2.43 |
| 5 | Sanima Bank | 8 | 2.24 | 1.63 |
| 6 | Prabhu Bank | 8.89 | 2.05 | 1.73 |
| 7 | Siddhartha Bank | 8.89 | 2.31 | 1.65 |
| 8 | Nepal SBI Bank | 8.45 | 2.3 | 1.6 |
| 9 | Machhapuchhre Bank | 8.06 | 1.7 | 1.32 |
| 10 | Bank of Kathmandu | 8.06 | 1.94 | 1.3 |
| 11 | Citizens Bank | 8.37 | 1.49 | 1.12 |
| 12 | Laxmi Bank | 8.92 | 1.58 | 1.16 |
| 13 | Kumari Bank | 8.69 | 1.33 | 0.97 |
The table below shows the expected dividend and a dividend yield of 13 commercial banks. Agricultural Development Bank, Nepal Bank, and Everest Bank occupy the top 3 spots with 36.50 percent, 35 percent, and 27 percent expected dividend respectively. We have also included the current market price of each bank to calculate the dividend yield and make a fair evaluation.
Expected Dividend & Dividend Yield of Commercial Banks
| S.N | COMMERCIAL BANK | Expected Dividend (In %) | Dividend Yield (%) | Current Market Price (Rs. ) [Shrawan 22] |
| 1 | Agricultural Development Bank | 36.5 | 8.39 | 435 |
| 2 | Nepal Bank | 35 | 10.57 | 331 |
| 3 | Everest Bank | 27 | 4.14 | 652 |
| 4 | Global IME | 23.5 | 7.97 | 295 |
| 5 | Sanima Bank | 20 | 5.63 | 355 |
| 6 | Prabhu Bank | 19 | 6.99 | 272 |
| 7 | Siddhartha Bank | 18.5 | 5.76 | 321 |
| 8 | Nepal SBI Bank | 18.5 | 4.04 | 458 |
| 9 | Machhapuchhre Bank | 16 | 6.15 | 260 |
| 10 | Bank of Kathmandu | 16 | 6.11 | 262 |
| 11 | Citizens Bank | 13 | 5.88 | 221 |
| 12 | Laxmi Bank | 13 | 5.99 | 217 |
| 13 | Kumari Bank | 11 | 5.21 | 211 |
