24th August 2020, Kathmandu
Have you ever wondered about investing in shares of a bank? And have you ever wondered how much you are earning from your shares? Well, your earnings per share (EPS) are one of the major components that indicate the profit a bank is making.
If you have invested in shares of a bank, you’ve heard about dividends, right? Dividends are the return on your investment (ROI) in shares. As an investor, you should always look at the EPS of the bank as higher EPS means a higher dividend!
Mathematically, you can calculate your EPS with a formula as well. If you take the Net Profit of a company (here, a bank) and divide it by its total number of shares, you will get your earnings per share!
It is a simple formula that can unfold many stories. Keep up with us, and let’s find out the EPS of commercial banks of Nepal!
Net Profit of Commercial Banks in Nepal
|S.N||Names of Commercial Bank||Net Profit (in Arba)|
|1||Rastriya Banijya Bank||4.45|
|3||Agricultural Development Bank||3.47|
|4||NIC Asia Bank||3.12|
|5||Global IME Bank||3.09|
|6||Nepal Investment Bank||2.57|
|10||Prime Commercial Bank||2.29|
|13||Standard Chartered Bank||1.98|
|15||Nepal SBI Bank||1.53|
|17||Bank of Kathmandu||1.48|
|22||Nepal Bangladesh Bank||1.24|
|26||Century Commercial Bank||0.91|
Number of Shares of Commercial Banks in Nepal along with their Paid Up Capital
|S.N||Names of Commercial Bank||Paid Up Capital (in Arba)||No. of Ordinary Shares (in crores)|
|1||Rastriya Banijya Bank||9||9|
|3||Agricultural Development Bank||14.99||9.56|
|4||NIC Asia Bank||9.72||9.72|
|5||Global IME Bank||18.98||18.98|
|6||Nepal Investment Bank||14.25||14.25|
|10||Prime Commercial Bank||13.99||13.99|
|13||Standard Chartered Bank||8.01||8.01|
|15||Nepal SBI Bank||8.96||8.96|
|17||Bank of Kathmandu||8.55||8.55|
|22||Nepal Bangladesh Bank||8.5||8.5|
|26||Century Commercial Bank||8.42||8.42|
Earnings per Share of Commercial Banks in Nepal
|S.N||Names of Commercial Bank||Earnings Per Share (EPS)|
|1||Rastriya Banijya Bank||49.44|
|3||Agricultural Development Bank||32.88|
|4||NIC Asia Bank||32.13|
|5||Global IME Bank||16.27|
|6||Nepal Investment Bank||18.07|
|10||Prime Commercial Bank||16.39|
|13||Standard Chartered Bank||24.76|
|15||Nepal SBI Bank||17.09|
|17||Bank of Kathmandu||17.26|
|22||Nepal Bangladesh Bank||15.01|
|26||Century Commercial Bank||10.77|
If you look at the above figures, you’ll see that Rastriya Banijya Bank (RBB) has the highest EPS at Rs 49.44. Similarly, Nabil Bank and Agricultural Development Bank (ADB) also have impressive EPS at Rs 37.24 and Rs 32.88 respectively.
We hope this indication helps you as an investor not just with banks but other companies as well!
Note: The data are taken from the unaudited fourth quarterly report of fiscal year 2076/77.