Which commercial banks have the highest profit-sharing capacity? Here is the top 5 list!

With the beginning of this fiscal year, the profit-sharing season for the companies listed on the Nepal Stock Exchange (NEPSE) has also started. Some listed companies have also declared their profits. Recently, a listed commercial bank on NEPSE announced its earnings. Among the banks that have announced their dividend, Machhapuchchhre Bank emerged as the top one.

Apart from banks, some mutual funds have also declared their profits. The board meeting of Machhapuchchhre Bank Limited, held on the 13th of this month, proposed distributing 14% in profits, including a 13.30% bonus and 0.70% cash dividend for the fiscal year 2079/80.

After approval from the Nepal Rastra Bank and subsequent endorsement by the company’s upcoming annual general meeting, these profits will be distributed to the investors.

Today, we will discuss the top 5 commercial banks with the highest profit-sharing capacity. As per the financial reports for the last fiscal year up to the fourth quarter, Everest Bank Limited has the highest profit-sharing ability among the listed commercial banks. Everest Bank can distribute up to 40.50% in profits, with a distributable profit of NPR 4 Arba 33 Crore 32 lakhs and 5 Thousand.

Next in line is NIC Asia Bank Limited, which has the second-highest profit-sharing capacity. NIC Asia Bank can distribute up to 31.99% in profits, with a distributable profit of NPR 3 Arba 69 Crore 88 lakhs 34 thousand, according to the financial reports for the last fiscal year up to the fourth quarter.

Standard Chartered Bank Limited holds the third position regarding profit distribution capacity. Standard Chartered Bank can distribute up to 28.99% in profits, with a distributable profit of NPR 2 Arba 73 Crore 39 Lakhs 36 Thousand , per the financial reports for the last fiscal year up to the fourth quarter.

When providing the financial details for the last fiscal year up to the fourth quarter, Sanima Bank Limited ranks fourth in profit-sharing capacity among the listed commercial banks. Sanima Bank has a profit-sharing ability of 17.73%, with a distributable profit of NPR 1 Arba 69 Crore 88 Lakhs 34 Thousand .

Machhapuchchhre Bank Limited, listed at number five in the profit-sharing capacity list, had a profit-sharing capacity of 15.29% per the financial reports for the last fiscal year up to the fourth quarter. However, the bank has announced a profit-sharing proposal of 13.30% as a bonus and 0.70% as a cash dividend, totalling 14% for the fiscal year 2079/80. After approval from the Nepal Rastra Bank and endorsement by the company’s upcoming annual general meeting, these profits will be distributed to the investors.