Earnings per share (EPS) of most commercial banks have declined in the first quarter of the current fiscal year compared to the same period last year, according to financial reports published by the banks. Of the 19 commercial banks listed on the Nepal Stock Exchange (Nepse), only four reported a fall in EPS in the first quarter of 2025/26. Citizens Bank has posted a negative EPS.

EPS represents the portion of a company’s profit allocated to each outstanding share of common stock. It is calculated by dividing a company’s net profit by the number of its shares. In the banking sector, EPS serves as a key indicator of profitability and operational efficiency.

Everest Bank recorded the highest EPS among commercial banks, at Rs 36.44 per share—an increase of Rs 1.59 compared to the corresponding quarter of the previous fiscal year. Standard Chartered Bank stood second with an EPS of Rs 27.57, down Rs 9 from Rs 36.57 a year ago. Similarly, the EPS of Prime Commercial Bank dropped by Rs 0.59 to Rs 25.94.

Nabil Bank’s EPS stood at Rs 25.49, followed by NMB Bank at Rs 19.95, Global IME Bank at Rs 19.51, Nepal SBI Bank at Rs 18.41, and Kumari Bank and government-owned Nepal Bank both at Rs 16.11. Machhapuchchhre Bank posted an EPS of Rs 13.83, Sanima Bank Rs 13.15, Himalayan Bank Rs 12.45, Prabhu Bank Rs 9.49, Siddhartha Bank Rs 9.03, and Laxmi Sunrise Bank Rs 5.46.

Among the lowest performers were NIC Asia Bank with an EPS of Rs 3.21, Nepal Investment Bank with Rs 0.17, and Citizens Bank with a negative EPS of Rs –5.97.

A higher EPS typically signals better earnings performance, suggesting that the institution can provide higher returns to shareholders, either through dividends or capital gains. On the other hand, a declining or negative EPS raises concerns about profitability, efficiency, or growing costs.

EPS is one of the most closely watched indicators for investors in the stock market. A consistently high EPS suggests stable income and potential for dividend payouts, while a shrinking EPS can dampen investor confidence.

Table

EPS of commercial banks (in Rs)