FINANCIAL PERFORMANCE ANALYSIS OF NEPALESE COMMERCIAL BANKS (A Comparative study on Sunrise Bank Ltd, Siddhartha Bank Ltd, Global IME Bank Ltd, Everest Bank Ltd and Nepal Bank Ltd)

Abstract

Financial performance is a complete assessment of a company's entire situation in a variety of categories, including assets, liabilities, equity, expenses, income, and profitability. It is determined utilizing a variety of business-related algorithms that allow consumers to calculate exact information about a company's future efficacy. The study is based on Five Nepalese Bank secondary data from FY 2011/12 to FY 2020/21. The primary goals of the research are to determine the current situation and assess the factors that influence banks' financial performance. Descriptive and casual research designs serve as the foundation for this study. The independent factors in this study are loan and advance to total deposit, interest coverage ratio, earnings per share, and price earnings ratio and the dependent variables are ROA and ROE. The average return on ROA of NBL is higher than other sample banks which shows that the better performance and profitability of the banks. The average return of ROE of EBL is higher which shows higher profitability of bank. The variables LATD, EPS, and PER show a negative insignificance association with ROA according to Pearson correlation. ICR and Return on Assets have a big link. In a similar way, return on equity and LATD, ICR, and EPS are significantly correlated. On the other hand, there is a negative insignificant connection between ROE and the PER variable. Regression analysis using SPSS 25 reveals that LATD, ICR, EPS, and PER taken together account for 73.6% of the variation in ROA, with other variables not included in this study accounting for the remaining 26.4%. Similarly, the combined effects of LATD, ICR, EPS, and PER can account for 69.4% of the variation in ROE, with other factors not covered in this study accounting for the remaining 30.6%.