Net Profit of Commercial Banks in Nepal [With Ranking]

INVESTOPAPER

Until the third quarter of the current fiscal year i.e. 2076/77, the commercial banks of Nepal have earned Rs. 45.70 Arba in net profit. The total profit is only 2.50 percent higher than the corresponding period of the last fiscal year. In the first nine months of the fiscal year 2075/76, the banks had earned a combined total profit of Rs. 44.63 Arba.

The slowdown in the growth rate of profit of the banks is mainly due to the impact of lockdown on the deposits as well as lending.  The lockdown in the last 20 days of the third quarter, resulted in the huge provision for some of the banks. With a higher base rate, the net interest income of some of the banks has also declined. This has resulted in a fall in the net profit of banks such as Rastriya Banijya Bank, Nabil Bank, Nepal Investment Bank, Nepal Bank among others.

Banks like Global IME Bank, Prime Commercial Bank, NMB Bank, Mega Bank etc have  improved their profitability as compared to the other banks.

Top Banks With Above Rs 3 Arba In Profit

Nabil Bank stands at the top among the 27 banks despite the fall in the net profit. Nabil has posted a profit of Rs. 3.16 Arba in the nine months of this fiscal year. In the same period last year, such profit stood at Rs. 3.19 Arba.

You May Also Like: Nabil Bank Quarterly Report

Global Ime Bank, after successful merger with Janata Bank, has earned Rs. 3.15 Arba in profit until the Chaitra end. Global Ime has placed itself as one of the top banks of Nepal and currently occupies number two spot in terms of net profit.

Rastriya Banijya Bank is the only other banks with above Rs 3 Arba in profit. The government bank earned a net profit of Rs. 3.04 Arba in the nine months. This is less than Rs 3.50 Arba profit of the bank in the same period of the previous year.

Also Read: Rastriya Banijya Bank Quarterly Report

Banks With Lowest Profit

Civil Bank, as always, remains at the bottom with the net profit of mere Rs. 32 crores. The profit has declined from the previous year’s Rs. 49 crores.

Likewise, Bank of Kathmandu, Century and Sunrise bank have a profit of less than Rs. 1 Arba. BOK, Century and Sunrise Bank reported a profit of Rs. 87.34 crores, Rs 91.57 crores and Rs 93.52 crores respectively.

The ranking of the commercial banks of Nepal based on the net profit is presented in the table below:

Net Profit of Commercial Banks in Nepal [With Ranking]

RANK BANKS NET PROFIT (Rs. Arba)
1 Nabil Bank 3.16
2 Global IME Bank 3.15
3 Rastriya Banijya Bank 3.04
4 Nepal Investment Bank 2.5
5 NIC Asia Bank 2.5
6 Everest Bank 2.35
7 Himalayan Bank 2.32
8 Agricultural Development Bank 2.04
9 Prime Commercial Bank 2.03
10 Nepal Bank 2
11 NMB Bank 1.88
12 Standard Chartered Bank 1.8
13 Sanima Bank 1.62
14 Prabhu Bank 1.46
15 Mega Bank 1.45
16 Nepal SBI Bank 1.44
17 Siddhartha Bank 1.34
18 Machhapuchhre bank 1.17
19 NCC 1.17
20 Citizen Bank International 1.09
21 Laxmi Bank 1.09
22 Kumari Bank 1.01
23 Nepal Bangladesh Bank 1
24 Sunrise Bank 0.94
25 Century Bank 0.92
26 Bank of Kathmandu 0.87
27 Civil Bank 0.36

Banks With Positive Growth In Profit

15 Commercial Banks have increased their profit as compared to the corresponding period of the previous year.

Global Ime Bank has reported a highest rise in profit by 68.46 percent. Including the profit of Janata Bank before merger, Global IME Bank has posted a profit of Rs. 3.15 Arba, up from Rs. 1.87 Arba of the previous year.

Similarly, the profit of Century Bank improved by almost 50 percent to Rs 91.57 crores. Century Bank had earned Rs. 61.06 crores until the end of Chaitra 2075.

Likewise, Prime Commercial Bank’s profit climbed by 31 percent to Rs. 2.03 Arba, which stood at Rs. 1.55 Arba in the previous year same period.

The banks who have increased their profitability are shown in the table below:

    NET PROFIT (Rs. Arba)
RANK BANKS Chaitra End, 2076 Chaitra End, 2075 Percent Change
1 Global IME Bank 3.15 1.87 68.46
2 Century Bank 0.92 0.61 49.96
3 Prime Commercial Bank 2.03 1.55 31.18
4 Mega Bank 1.45 1.21 19.5
5 Himalayan Bank 2.32 2.01 15.04
6 NMB Bank 1.88 1.65 14.05
7 NIC Asia Bank 2.5 2.28 9.92
8 Everest Bank 2.35 2.22 6.16
9 Laxmi Bank 1.09 1.03 5.85
10 Standard Chartered Bank 1.8 1.73 3.92
11 Sanima Bank 1.62 1.58 2.75
12 Citizen Bank International 1.09 1.07 2.01
13 Kumari Bank 1.01 1 0.94
14 Prabhu Bank 1.46 1.45 0.81
15 NCC 1.17 1.16 0.47

Banks With Decline In Profit

Out of the 27 banks, 12 banks have reported a fall in profit as compared to the third quarter of the last fiscal year.

Bank of Kathmandu has the highest plunge in profit by almost 27.50 percent. BOK earned Rs. 87.34 crores, down from Rs. 1.20 Arba of the previous year.

You May Also Like: Bank of Kathmandu (BOK) Quarterly Report

Likewise, Civil and Sunrise Bank reported a slid in profit by 27 percent and 23.71 percent respectively. Civil Bank which earned Rs 49.38 crores in the previous year posted a profit of Rs 36.05 crores this year. Likewise, Sunrise Bank’s profit declined from Rs. 1.23 Arba to Rs. 93.52 crores.

The banks that earned less than the previous year are presented in the table below:

    NET PROFIT (Rs. Arba)
RANK BANKS Chaitra End, 2076 Chaitra End, 2075 Percent Change
1 Bank of Kathmandu 0.87 1.2 -27.49
2 Civil Bank 0.36 0.49 -26.99
3 Sunrise Bank 0.94 1.23 -23.71
4 Siddhartha Bank 1.34 1.59 -15.88
5 Rastriya Banijya Bank 3.04 3.5 -13.23
6 Nepal Bangladesh Bank 1 1.14 -11.95
7 Nepal Bank 2 2.25 -11.08
8 Nepal SBI Bank 1.44 1.6 -10.14
9 Agricultural Development Bank 2.04 2.21 -7.77
10 Machhapuchhre bank 1.17 1.24 -5.96
11 Nepal Investment Bank 2.5 2.57 -2.73
12 Nabil Bank 3.16 3.19 -1.01


Note:
The above figures are based on the un-audited third-quarter report published by the respective company. Investors are advised to take other things into consideration along with this report while making investment decisions. The numbers may vary after the final audit.

Read Related Contents:

3 Government Banks Of Nepal: Comparative Analysis

Share This Via:

Investopaper

Investopaper is a financial website which provides news, articles, data, and reports related to business, finance and economics.

2 thoughts on “Net Profit of Commercial Banks in Nepal [With Ranking]

  • May 15, 2020 at 11:59 pm
    Permalink

    thank you for information

    Reply
  • May 24, 2020 at 5:02 pm
    Permalink

    Thank you so much. Excellent for information. All the best.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected !!