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Banks achieve double digit profit growth

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

source: the himalayan times, 30 jan 2018



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