Comment 1; This year, SCB has tasted bitter pills. Nabil price, once, had over
taken its share price. Now, also, Nabil is challenging SCB's supremacy.
EBL is closely following it. Its status, prestige and standing are being
challenged.
This dollar-happy bank must have earned a lot this time due to exchange rate fluctuations. Though, 3rd quarter profit was not impressive, I hope, its 4th quarter profit will scale up. The most conservative lender as it is, there is good chance that its other financial indicators will remain strong. Its price has not moved up that much in several months.
My assessment is that this year, this wounded lion will roar loud. Although, it had some tough talking against the NRB provision of raising paid up capital, I think, they will increase the capital this year substantially, may be much higher than the minimum requirement. There could be a bumper harvest for the shareholders of SCB this year like something what Nabil did last year.
Disclosure: I hold SCB shares (nearly 4% of my investment in capital market) and may be, my assessment above could have some influences of this factor. However, irrespective of price going up or down, I will hold SCB shares for some more years.
Comment 2; Standard Chartered Bank is one bank that can boast about being the bank with the one of the best financial indicators in the banking sector of the country. However, other banks have surpassed it in terms of profits. As I have said before I would not write off SCB as of yet based on 3rd quarter reports of the bank.
The NRB has directed the commercial banks to raise their paid up capital to increase their paid up capital to Rs.2 billion by the end of Ashadh 2071.The paid up capital of the bank stands at Rs.1,853,900,000 as of 3rd quarter 2069/70 which is still short of Rs.2 billion by Rs.146,100,000. The bank can still offer atleast 40-45(%) returns (a mix of bonus share and cash dividend) to it its share holders. The bank will have to offer a minimum of 8% bonus share so one can expect around 10% bonus shares and the rest cash dividend.
There isn't much to complain about the financial report of the bank (3rd quarter 2069/70) apart from the profit but as an investor we put profit over everything else and the return prospects based on the profit earned by the company. The reserve of the bank stands at Rs.3,118,573,000 which is excellent. The provisioning for the possible losses stands at Rs.81,089,000 which is not again not bad. The profit earned by the bank is Rs.848,097,000 which is Rs.1,951,000 less than the previous year's 3rd quarter ending. The non-performing loan of the bank stands at 0.88% and its Earning Per Share (Annualized) stands at Rs.61.
From my view point it would be wiser to wait till the fourth quarter report of the bank are out before drawing any conclusion.
Src : Rajesh sharma, Freak Money, Jamb forum
This dollar-happy bank must have earned a lot this time due to exchange rate fluctuations. Though, 3rd quarter profit was not impressive, I hope, its 4th quarter profit will scale up. The most conservative lender as it is, there is good chance that its other financial indicators will remain strong. Its price has not moved up that much in several months.
My assessment is that this year, this wounded lion will roar loud. Although, it had some tough talking against the NRB provision of raising paid up capital, I think, they will increase the capital this year substantially, may be much higher than the minimum requirement. There could be a bumper harvest for the shareholders of SCB this year like something what Nabil did last year.
Disclosure: I hold SCB shares (nearly 4% of my investment in capital market) and may be, my assessment above could have some influences of this factor. However, irrespective of price going up or down, I will hold SCB shares for some more years.
Comment 2; Standard Chartered Bank is one bank that can boast about being the bank with the one of the best financial indicators in the banking sector of the country. However, other banks have surpassed it in terms of profits. As I have said before I would not write off SCB as of yet based on 3rd quarter reports of the bank.
The NRB has directed the commercial banks to raise their paid up capital to increase their paid up capital to Rs.2 billion by the end of Ashadh 2071.The paid up capital of the bank stands at Rs.1,853,900,000 as of 3rd quarter 2069/70 which is still short of Rs.2 billion by Rs.146,100,000. The bank can still offer atleast 40-45(%) returns (a mix of bonus share and cash dividend) to it its share holders. The bank will have to offer a minimum of 8% bonus share so one can expect around 10% bonus shares and the rest cash dividend.
There isn't much to complain about the financial report of the bank (3rd quarter 2069/70) apart from the profit but as an investor we put profit over everything else and the return prospects based on the profit earned by the company. The reserve of the bank stands at Rs.3,118,573,000 which is excellent. The provisioning for the possible losses stands at Rs.81,089,000 which is not again not bad. The profit earned by the bank is Rs.848,097,000 which is Rs.1,951,000 less than the previous year's 3rd quarter ending. The non-performing loan of the bank stands at 0.88% and its Earning Per Share (Annualized) stands at Rs.61.
From my view point it would be wiser to wait till the fourth quarter report of the bank are out before drawing any conclusion.
Src : Rajesh sharma, Freak Money, Jamb forum
