Kathmandu. The return on equity (ROE) of commercial banks has improved. There has been an overall improvement in the ROE of commercial banks.

The ROE of banks increased from an average of 7.42 percent in the previous financial year 2081-82 to 9.24 percent in the last financial year 2082-83. Out of the 20 commercial banks in operation till mid-July of the last fiscal year, the ROE of 14 banks has increased while the ROE of the remaining six banks has decreased.

Kumari Bank had the highest ROE of 16.49 percent in the last fiscal year. Kumari Bank’s ROE increased by 11.59 percentage points in a year ago from 4.90 percent in the previous FY. It is followed by Everest Bank at 15.10 percent, Sanima Bank at 14.39 percent and Standard Chartered Bank at 12.85 percent.

The biggest improvement in ROE has been seen by NIC Asia Bank. The bank’s ROE increased to 0.71 percent in the last fiscal year from -14.03 percent in the previous FY. The bank’s ROE improved by 14.74 percentage points.

Kumari Bank’s ROE increased by 11.59 percent. Likewise, Himalayan Bank Ltd (3.48 percent), Citizens Bank (2.99 percent), Nepal Bank (2.87 percent) and Sanima Bank (2.69 percent) surged in the review period.

Similarly, the ROE of NMB Bank increased by 2.24 percent, Prime Commercial Bank by 2.07 percent, Nabil Bank by 1.99 percent, Everest Bank by 1.91 percent, Global IME Bank by 1.20 percent, Rastriya Banijya Bank by 1.03 percent, Nepal SBI Bank by 0.78 percent and Machhapuchchhre Bank by 0.40 percent.

Prabhu Bank has been the biggest loser among the banks with a decline in ROE. Prabhu Bank’s ROE decreased from 2.60 percent to -0.71 percent. That is, the bank’s ROE decreased by 3.31 percentage points.

Nepal Investment Mega Bank’s ROE decreased by 3.05 percentage points from 7.20 percent to 4.15 percent. Laxmi Sunrise Bank’s ROE decreased by 2.74 percentage points from 9.46 percent to 6.72 percent.

The ROE of Agricultural Development Bank decreased by 2.38 percentage points from 10.27 percent to 7.89 percent. Standard Chartered Bank fell 1.43 percentage points to 12.85 per cent from 14.28 per cent. Siddhartha Bank’s ROE declined by 0.79 percentage points to 10.62 per cent from 11.41 per cent.