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