Q4 financial report of 8 commercial banks: NIC Asia holds highest dividend distribution capacity

KATHMANDU: Eight commercial banks have published their financial statements for the fourth quarter of the last financial year. NIC Asia Bank, Global IME Bank, Sanima Bank, Machhapuchhre Bank, Prabhu Bank, Laxmi Bank, Citizens Bank International and Sunrise Bank have released their fourth quarter financial statements.

Among these eight banks, NIC Asia Bank has the ability to distribute the highest dividend.

In the fourth quarter of previous fiscal year, the distributable profit of the NIC Asia Bank was Rs 2.24 billion. In the last fiscal year the bank has earned Rs 4.52 billion profit. Based on the distributable profit, this bank has a dividend capacity of 19.43 percent.

According to the NFRS system, the distributable profit is the profit after separating it under various headings from the net profit earned by the company. From this profit, the bank distributes dividends to the shareholders. The dividend capacity is obtained by dividing the company’s distributable profit by the number of outstanding shares of the company.

Similarly, the dividend capacity of Global IME Bank is 13.45 percent. The company distributed 10 percent bonus shares and 3.50 percent cash dividend to the shareholders from the previous year’s profit. In the fourth quarter of last year, the distributable profit of the company was Rs 3.19 billion.

In the meantime, Sunrise Bank has the lowest dividend yield of 2.53 percent among the eight commercial banks that have released their financial statements till date. The distributable profit of this bank till the fourth quarter of last fiscal year was Rs 25.61 million.

Global IME Bank has the highest net profit earner of Rs 5.20 billion in last fiscal year.

Source: Q4 financial report of respective banks