Seven Commercial Banks Reveal Fourth-Quarter Results, Dividend Capacity Ranges from 5% to 38%
Kathmandu — Seven commercial banks have disclosed their fourth-quarter financial statements for the fiscal year 2081/82, revealing dividend distribution capacities ranging from 5.25% to 38.27%. The banks include Machhapuchhre Bank, Kumari Bank, Siddhartha Bank, Agricultural Development Bank, Citizens Bank, Everest Bank, and Sanima Bank.
According to the published figures, Everest Bank leads with the highest dividend capacity of 38.27%, followed by Sanima Bank at 20.47%, Agricultural Development Bank at 18.42%, Machhapuchhre Bank at 15.7%, Siddhartha Bank at 13.22%, and Citizens Bank at 5.25%. Kumari Bank reported a negative distributable profit, making dividend distribution unlikely.
Bank-wise Performance Overview:
Machhapuchhre Bank posted a net profit of Rs 2.01 billion, up 92.45% from last year. Interest income rose 15.41% to Rs 5.75 billion, while loan loss provisions dropped sharply from Rs 1.39 billion to Rs 35.37 million. Earnings per share (EPS) stood at Rs 17.31.
Kumari Bank saw a significant turnaround, with profits reaching Rs 2.11 billion compared to Rs 4.6 million in the previous year. Provisions fell from Rs 6 billion to Rs 2 billion, and interest income grew 7% to Rs 11.55 billion. However, distributable profit remained negative at Rs 2.79 billion.
Siddhartha Bank earned Rs 3.39 billion in net profit, up 10.24%, with distributable profit surging 220% to Rs 1.86 billion. Interest income rose 6.43% to Rs 8.44 billion. EPS stood at Rs 24.1. Despite allocating Rs 1.46 billion for debenture redemption, it maintains a dividend capacity of 13.22%.
Agricultural Development Bank recorded a 44% profit increase to Rs 4.15 billion. Provisions dropped to Rs 100 million from Rs 2.15 billion, while interest income fell 7% to Rs 9.82 billion. EPS was Rs 27.06.
Citizens Bank reported a 2% decline in profit to Rs 1.29 billion. Provisions rose from Rs 1.72 billion to Rs 2.67 billion, while interest income grew nearly 12% to Rs 6.36 billion. EPS stood at Rs 8.76.
Everest Bank achieved a net profit of about Rs 5 billion, up 32.80%. Net interest income increased 19.36% to Rs 9.12 billion, and operating profit rose 31.63% to Rs 7.45 billion, enabling its industry-high dividend capacity of 38.27%.
Sanima Bank posted Rs 2.57 billion in profit, up 7.24%. Interest income rose 2.81% to Rs 6.35 billion, and distributable profit jumped 92.13% to Rs 2.78 billion. Non-performing loans stood at 1.21%, EPS at Rs 18.93, and net worth per share at Rs 168.83.
Dividend Capacity Summary:
Everest Bank — 38.27%
Sanima Bank — 20.47%
Krishi Bikas Bank — 18.42%
Machhapuchhre Bank — 15.7%
Siddhartha Bank — 13.22%
Citizens Bank — 5.25%
Kumari Bank — Negative