Kathmandu. Last fiscal year 2082. In 2018, commercial banks earned a profit of Rs 70 billion.
According to the financial details of the last fiscal year, the 20 commercial banks in operation earned a net profit of Rs 69.88 billion. Previous fiscal year 2081. The bank had earned a net profit of Rs 52.81 billion in the review period. In this regard, the profit of the banks has increased by 32.32 percent compared to the previous year.
Although there has been a significant improvement in the profitability of the banks, the provision of loan loss due to bad loans has not improved the dividend capacity much. Out of the 19 commercial banks listed in NEPSE, 15 are able to distribute dividends while four are not in a position to distribute dividends from the distributable profit of the last fiscal year.
What is the dividend potential of a bank?TAG_OPEN_strong_22
Among the commercial banks, Everest Bank has the highest dividend yield while Citizens Bank and Kumami Bank have shown the lowest dividend yield. Everest Bank has a dividend of 38.32 percent. Last year, the bank’s dividend was 37.80 percent.
Similarly, Siddhartha Bank is the second largest bank in the world. The bank has a dividend yield of 26.15 percent. This is double the number of previous years. Last year, Siddhartha Bank had a dividend of 13.04 percent.
Sanima Bank is in the third position. The bank has a dividend yield of 20.85 percent. The bank’s dividend was 15.48 percent in the previous year.
In the review year, Nabil Bank has the ability to distribute 19.10 percent dividend, Standard Chartered Bank 19.09 percent, Nepal Bank 15.84 percent, Global IME Bank 12.02 percent and Nepal SBI Bank 11.04 percent.
Prime Commercial Bank, NMB Bank, Machhapuchchhre Bank, Laxmi Sunrise Bank, Agriculture Development Bank, Citizens Bank and Kumari Bank have made single digit dividend each.
