Performance of Commercial Banks as of Q2-FY65/66

Sunday - 15th February, 2009 | ResCon

Research @ ResCon:

The Accumulated Net Profit summary of the Commercial Bank Group is given below.

Up to Q2 of 2064/65:                              Rs 3.859 billion
Average Net Profit at Q2 2064/65:          Rs 160.810 million

Up to Q2 of 2065/66:                              Rs 5.868 billion
Average Net Profit at Q2 2065/66:          Rs 244.51 million

Net Profit increased by:                          170%

Please note that the figure below comprises of the figures of all the commercial banks, both listed and not listed.

The 2nd Quarter of FY 2065/66 unaudited Net Profit figures of Commercial Bank group clearly shows that commercial banks, in general, performed well in this quarter as compared to corresponding quarter of the previous year. On an average, commercial banks’ profit advanced by 170% this quarter. The group accumulated Rs 5.868 billion in net profit this quarter compared to Rs 3.859 billion net profit in the corresponding previous year quarter. Please check the table below for unaudited net profit/loss figures of the commercial banks up to 2nd quarter.

Amount in Rs/million

#

Company FY 2065/66
(Up to 2nd Qtr)
FY 2064/65
(Up to 2nd Qtr)
Change
1 Bank of Asia Nepal Ltd 18.714 -1.49 1356%
2 Prime Commercial Bank Ltd 55.225 -8.632 740%
3 Nepal Bank Ltd 458.8 69.6 559%
4 Sunrise Bank Ltd 46.701 -13.151 455%
5 Rastriya Banijya Bank Ltd 1111.604 381.541 191%
6 Development Credit Bank Ltd 50.209 18.86 166%
7 Global  Bank Ltd 65.27 32.81 99%
8 Citizen Bank Int'l Ltd 35.587 19.254 85%
9 Nepal SBI Bank Ltd 155.274 93.755 66%
10 Everest Bank Ltd 289.558 182.276 59%
11 Laxmi Bank Ltd 94.417 60.071 57%
12 Bank of Kathmandu Ltd 229.18 149.121 54%
13 Siddhartha Bank Ltd 109.786 72.245 52%
14 Himalayan Bank Ltd 378.824 258.2 47%
15 Nepal Ind & Com Bank Ltd 177.779 121.291 47%
16 Kumari Bank Ltd 133.679 93.215 43%
17 NMB Bank Ltd 42.753 30.095 42%
18 Nepal Investment Bank Ltd 423.343 302.415 40%
19 Nabil Bank Ltd 429.325 345.21 24%
20 Standard Chartered Bank Ltd 484.701 394.81 23%
21 Nepal Bangladesh Bank Ltd 588.453 578.881 2%
22 Lumbini Bank Ltd 265.345 295.3 -10%
23 Nepal Credit & Com. Bank Ltd 198.703 299.255 -34%
24 Machhapuchchhre Bank Ltd 24.956 84.526 -70%
Total 5,868.19 3,859.46 4092%
Average 244.51 160.81 170%

Such a phenomenal growth in Quarter to Quarter net profit indicates that our commercial banks are performing well amidst the global financial crisis. However, the challenge now is to sustain the growth and stability during these recessionary times.

ResCon Tip-Off:

We know that there exists a strong positive correlation between Earnings and Market Share Price figures. That is, if earnings’ figure of a company increases, the share price of the company will increase too. But in case of the Nepalese commercial banks, we are not seeing the same phenomenon. In spite of better performance, the share prices of most of the commercial banks are down.

If you are someone who follows Warren Buffett, you will certainly know that the market price of a company must always address the fundamentals of that company. In our case, there are some good commercial banks which are undervalued currently. These banks’ share prices will definitely go up in the future. All you need to do is put on your thinking cap and choose the correct one.
Well if you think you need some professional help, let us know.