Nepal | July 21, 2019

Banks achieve double digit profit growth

Himalayan News Service

Kathmandu, January 29

The collective profit of commercial banks in first half of current fiscal increased by 10.36 per cent compared to the corresponding period of the previous fiscal.

The 28 commercial banks in operation generated total profit worth Rs 23 billion in the first half of 2017-18 compared to Rs 20.85 billion in the same period of 2016-17, as per the unaudited financial reports published by commercial banks.

The profit of commercial banks in the first half was a marked improvement when compared to dismal three per cent profit growth witnessed in first quarter of this fiscal.

However, the profit growth of commercial banks has been squeezed over the year. The profit growth of commercial banks stood at above 40 per cent in the first half of last fiscal compared to the same period of the fiscal 2015-16.

Nepal Investment Bank Ltd was the top profit maker in the review period as it generated profit worth Rs 1.86 billion.

It was followed by Nabil Bank with total profit worth Rs 1.83 billion, government-owned Rastriya Banijya Bank (Rs 1.78 billion), Nepal Bank (Rs 1.63 billion) and Everest Bank (Rs 1.14 billion), as per the financial statements published by the commercial banks.

Altogether nine banks generated profit above Rs one billion.

Apart from aforementioned top five profit makers, Himalayan Bank, Agricultural Development Bank, Standard Chartered Bank and NMB Bank made it to the ‘billionaires club’ in first half.

The total profit of nine ‘billionaire’ banks had 53.7 per cent weightage on the total profit of the banks.

Similarly, Civil Bank, Janata Bank, Century Bank, NCC Bank and Mega Bank ranked at the bottom five in terms of profit generation during the review period.

In the review period, eight banks landed in the red zone in terms of profit growth.

These included Prabhu Bank, NIC Asia Bank, Nepal Bangladesh Bank, Nepal Bank, Machhapuchchhre Bank, Bank of Kathmandu, Sunrise Bank, Citizens Bank International, as per the financial results till the second quarter of the current fiscal year.

Likewise, Nepal Credit and Commerce (NCC) Bank was the forerunner in terms of profit growth in the first half of fiscal.

Profit growth of NCC Bank stood at a staggering 356.7 per cent, followed by Kumari Bank (71 per cent), Janata Bank (68 per cent), Rastriya Banijya Bank (46 per cent) and Century Bank (45 per cent), compared to the corresponding period of the previous fiscal.

First half results

Banks 2016-17 2017-18
Nepal Investment 1,584,967 1,860,000
Nabil 1,747,944 1,830,000
Rastriya Banijya 1,217,734 1,780,000
Nepal Bank 1,895,077 1,630,000
Everest 971,576 1,140,000
Himalayan 1,027,879 1,100,000
Agricultural Development 906,689 1,020,000
Standard Chartered 740,146 1,010,000
NMB 701,079 1,000,000
Global IME 906,209 954,200
Nepal SBI 758,725 913,000
Sanima 622,411 824,784
Siddhartha 726,036 772,817
Prime 559,718 715,128
Prabhu 1,112,328 634,960
Citizens 631,668 628,600
Sunrise 609,709 594,290
NIC Asia 721,404 572,110
BoK 601,449 551,530
Laxmi 406,394 519,270
Kumari 279,354 480,200
Machhapuchchhre 575,311 471,870
Nepal Bangladesh 540,629 438,000
Mega 370,910 393,650
Nepal Credit & Commerce 77,619 354,520
Century 223,935 325,100
Janata 161,347 271,700
Civil 167,339 219,770

Figures in Rs ‘000; Source: Unaudited financial reports of commercial banks

A version of this article appears in print on January 30, 2018 of The Himalayan Times.

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