Kathmandu: The average PE ratio of the 19 listed commercial banks is 33.22. The ROE (TTM) of the banks is 9.42 percent. The PE ratio of 9 of the banks is less than 20. According to Smart Wealth Pro, NMB Bank has the lowest PE ratio among the commercial banks. Based on the market price on Wednesday (Magh 9), this bank has a PE of 11.19.

The release of the second-quarter financial reports for FY 2081/82 by all 20 commercial banks sheds light on their financial performance, offering a detailed view of profitability, business volume, and key financial metrics. This analysis covers the second-quarter results, highlighting trends across net profit, capital adequacy, and other pivotal indicators.

Nepal Investment Mega has a PE of 12.75, Prime Commercial Bank has a PE of 12.76, Global IME has a PE of 13.92, Himalayan Bank has a PE of 16.32, Sanima Bank has a PE of 16.97, Everest has a PE of 18.65 and Prabhu Bank has a PE of 19.76. The remaining banks have a PE ratio of above 20. NIC Asia has the highest PE. Its PE ratio is 182.17. Kumari has a PE of 96.19 and Nepal Bank has a PE of 40.51.

Similarly, Standard Chartered Bank has the highest Return on Equity (ROE) among the banks. Its ROE (TTM) is 16.20 percent. Prabhu has a ROE of 15.47 percent, Everest has a ROE of 14.75 percent, Nabil Bank has a ROE of 12.39, and Sanima has a ROE of 11.85 percent. This has been calculated based on the last 12 months data (TTM).

Net Profit:

In Q2 FY 2081/82, Nabil Bank Limited (NABIL) led with a net profit of Rs. 3.24 Arba, marking a 1.29% increase over the same period last year. Global IME Bank Limited (GBIME) followed with a net profit of Rs. 3.05 Arba, although this represents a 49.51% incline from the previous year. Nepal Investment Mega Bank (NIMB) took third with Rs. 2.83 Arba.

Prabhu Bank Limited (PRVU) recorded the highest growth, a staggering 85.50% rise, while NIC Asia Bank Limited (NICA) saw the largest decline at 92.03%.

Paid-Up Capital: Global IME Bank Limited (GBIME) holds the highest paid-up capital at Rs. 38.12 Arba, followed by Nepal Investment Mega Bank Limited (NIMB) at Rs. 34.13 Arba, and Nabil Bank Limited (NABIL) with Rs. 27.06 Arba. Standard Chartered Bank Nepal Limited (SCB) has the lowest paid-up capital at Rs. 10.04 Arba.

Loans and Advances to Customers:

Global IME Bank Limited (GBIME) topped the list in loans and advances with Rs. 4.07 Kharba, followed by Nabil Bank Limited (NABIL) with Rs. 3.91 Kharba.

Standard Chartered Bank Nepal Limited (SCB) had the smallest portfolio at Rs. 78.17 Arba. The industry average loan disbursement was Rs. 2.27 Kharba, with eight banks exceeding this average.

Provisions (Impairment/Reversal): Banks allocated Rs. 24.67 Arba for loan loss provisions and delayed loan repayments. Kumari Bank Limited (KBL) recorded the highest impairment charge at Rs. 3.27 Arba, with Nepal Bank Limited (NBL) next at Rs. 2.53 Arba.

Earnings Per Share (EPS): Standard Chartered Bank Nepal Limited (SCB) posted the highest annualized EPS at Rs. 32.67, followed by Everest Bank Limited (EBL) at Rs. 32.06 and Nabil Bank Limited (NABIL) at Rs. 23.98. The industry average EPS was Rs. 14.72, with nine banks above this benchmark. NIC Asia Bank Limited (NICA) had the lowest EPS at Rs. 2.03.

Distributable Profit Per Share:  Everest Bank Limited (EBL) reported a distributable profit exceeding Rs. 20.99 per share, followed by Sanima Bank Limited at Rs. 13.25. Six banks reported negative distributable profit per share for the quarter.

Non-Performing Loans (NPL): Everest Bank Limited (EBL) had the lowest NPL at 0.66%, while Kumari Bank Limited (KBL) reported the highest NPL at 6.96%.