Income & Net Profit
In terms of net profit, Nabil Bank stood at the top position with a net profit of Rs 7.90 billion, followed by Kumari Bank with Rs 7.38 billion. Similarly, Global IME Bank, Everest Bank and Rastriya Banijya Bank earned net profit of Rs 6.22 billion, Rs 5.06 billion and Rs 4.55 billion respectively. On the other hand, Prabhu Bank reported a net loss of Rs 241.2 million due to non-performing loans and huge pressure on impairment charges.
In the mean time, Everest Bank is at the top in terms of dividend distribution capacity to shareholders with a dividend yield of 38.32 per share. Similarly, Nabil Bank and Standard Chartered Bank have the ability to distribute 19.10 percent and 19.04 percent dividend per share, respectively. However, due to the burden of provisioning of past non-performing loans and regulatory adjustments, the distributable profit of NIC Asia Bank, Himalayan Bank, Prabhu Bank and Nepal Investment Mega Bank has become negative.
Paid-up capital, reserve funds, deposits and loans
Global IME Bank has the largest paid-up capital of Rs 38.11 billion followed by Nepal Investment Mega Bank with Rs 34.12 billion. On the basis of reserve fund, Rastriya Banijya Bank is in the strongest position with Rs 40.45 billion (reserve and retained earning) while Nabil Bank has reserve fund of Rs 39.85 billion. In terms of deposit collection, Rastriya Banijya Bank (Rs 686.13 billion) and Global IME Bank (Rs 669.17 billion) are at the top while Nabil Bank (Rs 460.31 billion) and Global IME Bank (Rs 439.34 billion) have the largest share of the market in loan extensions.
Earnings per share and net worth per share
In terms of EPS, Everest Bank Ltd (Rs. 30.63), Rastriya Banijya Bank Ltd. (Rs. 29.14), Standard Chartered Bank (Rs. 28.38), Nabil Bank (Rs. 28.36) and Kumari Bank (Rs. 28.17) have posted good EPS. On the other hand, Prabhu Bank logged LPS of Rs 1.02 while NIC Asia Bank has EPS of mere Rs 1.22.
On the basis of book value, Nepal Bank has emerged as the strongest bank with net worth per share of Rs 287.70, followed by Everest Bank and Nabil Bank in the second and third positions respectively. In terms of valuation, Kumari Bank and Nepal Bank have the lowest price-to-earnings ratio while NIC Asia Bank's ratio has reached 266.90 times.
There is also a huge difference between the quality of the assets of the banks and the risk of bad loans. Similarly, Everest Bank and Standard Chartered Bank have shown excellent risk management performance by limiting bad loans to 2.03 percent. However, the non-performing loan of Prabhu Bank has reached 15.55 percent, while NIC Asia Bank, Nepal Investment Mega Bank, Himalayan Bank and Kumari Bank have reached 7-9 percent. Overall, banks with strong financial discipline and low bad loans remain attractive to investors, while banks that have struggled to recover after aggressive credit expansion have been further squeezed by the burden of provisioning.
