एभरेस्ट बैंक लिमिटेडको आव २०८२/८३ को चौथो त्रैमासिक वित्तीय विवरणEverest Bank Limited Q4 Unaudited Financial Result FY 2082/83

Everest Bank Limited

Unaudited Financial Result

4th Quarter Ending F/Y 2082/83

Unaudited Condensed Statement of Financial Position

As on Quarter ended 32nd Ashadh 2083

Fig in NPR '000

Assets This Quarter Ending Immediate Previous year Ending (Audited)

Cash and cash equivalent	9,103,983	6,720,639
Due from Nepal Rastra Bank	35,026,020	64,715,146
Placement with Bank and Financial Institutions	19,457,118	7,996,585
Derivative financial instruments	7,986,459	3,577,724
Other trading assets	-	-
Loan and advances to B/FIs	11,530,295	9,781,759
Loans and advances to customers	235,568,387	213,438,490
Investment securities	57,029,886	49,443,437
Current tax assets	286,182	374,635
Investment in subsidiaries	-	-
Investment in associates	763,349	762,144
Investment property	514,473	564,295
Property and equipment	3,939,362	4,177,562
Goodwill and Intangible assets	183,548	191,980
Deferred tax assets	-	-
Other assets	2,369,174	1,894,847
Total Assets	383,758,236	363,639,245
Liabilities
Due to Bank and Financial Institutions	2,357,963	3,436,943
Due to Nepal Rastra Bank	-	-
Derivative financial instruments	8,044,998	3,598,404
Deposits from customers	316,018,577	298,818,400
Borrowing	-	-
Current Tax Liabilities	-	-
Provisions	-	-
Deferred tax liabilities	8,085	42,194
Other liabilities	15,533,117	19,200,191
Debt securities issued	6,603,613	6,603,613
Subordinated Liabilities	-	-
Total liabilities	348,566,353	331,699,745
Equity
Share capital	13,721,376	12,944,694
Share premium	238,470	238,470
Retained earnings	5,504,212	4,893,096
Reserves	15,727,825	13,863,240
Total equity attributable to equity holders	35,191,883	31,939,500
Non-controlling interest	-	-
Total equity	35,191,883	31,939,500
Total liabilities and equity	383,758,236	363,639,245

Everest Bank Limited

Unaudited Condensed Statement of Profit or Loss

For the Quarter Ended 32nd Ashadh 2083

Fig in NPR '000

Particulars Current Year This Quarter Current Year Upto This Quarter (YTD) Previous Year Corresponding This Quarter Previous Year Corresponding Upto This Quarter (YTD)
Interest income	5,086,025	20,102,585	5,355,949	20,814,261
Interest expense	2,729,036	10,912,126	2,997,582	11,711,937
Net interest income	2,356,989	9,190,459	2,358,366	9,102,324
Fee and commission income	601,086	2,207,864	520,942	1,877,809
Fee and commission expense	106,462	260,600	86,851	347,312
Net fee and commission income	494,624	1,947,263	434,091	1,530,497
Net interest, fee and commission income	2,851,614	11,137,723	2,792,458	10,632,821

Statement of Distributable Profit or Loss

For the Quarter Ended 32nd Ashadh 2083

(As per NRB Regulation)

Fig In ‘000

Particulars Current Year Up to this Qtr YTD Previous Year Corresponding Qtr YTD

Net profit or (loss) as per statement of profit or loss	5,069,936	4,839,903
Appropriations:
a. General reserve	1,013,987	967,981

b. Foreign exchange fluctuation fund 4,309 210

c. Capital redemption reserve	930,552	597,219
d. Corporate social responsibility fund	28,762	5,551
e. Employees' training fund	15,469	8,304
f. Other	-	-
Profit or (loss) before regulatory adjustment	3,076,856	3,260,639
Regulatory Adjustment:
a. Interest receivable (-)/previous accrued interest received (+)	(11,434)	233,836
b. Short loan loss provision in accounts (-)/reversal (+)	-	-
c. Short provision for possible losses on investment (-)/reversal (+)	-	-
d. Short loan loss provision on Non Banking Assets (-)/reversal (+)	49,822	(38,652)
e. Deferred tax assets recognised (-)/ reversal (+)	-	(60,291)
f. Goodwill recognised (-)/ impairment of Goodwill (+)	-	-
g. Bargain purchase gain recognised (-)/reversal (+)	-	-
h. Actuarial loss recognised (-)/reversal (+)	(79,586)	(9,641)
i. Other- Interest Capitalization Reserve	(80,797)	(13,726)
j. Other- Share of Profit/Loss of Associate	(1,205)	46,118
Net profit for the Quarter ended Ashadh 32	2,953,658	3,418,283
Opening Retained Earning as on Shrawan 1	4,893,096	3,302,369
Adjustment (+/-)	-	-
Distribution:
Bonus Shares Issued	(776,682)	(1,176,790)
Cash Dividend Paid	(1,812,257)	(650,765)
Total Distributable profit or (loss) as on Ashadh 32	5,257,815	4,893,096
Annualised Distributable Profit/Loss per Share	38.32	37.80

Publication of Information as Required by Securities Registration and Issuance Regulation 2073 (Related to Sub Rule (1) of Rule 26)

1. Financial Statements

A. Statement of Financial Position and Statement of Profit and Loss

Published along with this report.

B. Related Party Disclosure

Parties are related if any one party can control the other party or exercise the significant influence over the other party in making financial or operational decisions.

Punjab National Bank, a leading Public Sector Bank in India (a Government Public Sector Bank) holds 20.03% promoter shares in the bank and has representation in the Board of the bank, is a related party to the bank.

The Directors, Chief Executive Officer and other key management personnel are also considered to be related parties to the bank. No transaction between the bank and KMPs was observed other than as prescribed under the service byelaws of the bank and is only related to remuneration.

C. Major Financial Highlights

(i) Earnings Per Share Rs. 36.95 (ii) Liquidity Ratio 31.91%

(iii) Market Value per share Rs. 695 (iv) ROA/ ROE 1.36% / 15.10%

(v) PE Ratio 18.81 (vi) Net Worth per Share Rs. 256.47

2. Management Analysis

a) During the review period, the global economy continued to grow at a moderate pace despite persistent geopolitical tensions, evolving trade policies, and volatility in international financial markets. Inflation has generally eased across major economies, enabling several central banks to adopt a more accommodative monetary policy stance. While these developments have supported global economic activity, risks associated with geopolitical uncertainties, commodity price fluctuations, climate-related events, and financial market volatility continue to influence the global outlook.

b) The Nepalese economy remained broadly stable during the review period. Inflation remained within a manageable range, supported by stable supply conditions and prudent monetary management. Robust remittance inflows, comfortable foreign exchange reserves, recovery in tourism, and improved external sector indicators contributed to maintaining macroeconomic stability. Improved liquidity in the banking system and the gradual decline in interest rates have created a more supportive environment for investment and business activities.

c) Nevertheless, private sector credit demand continued to recover gradually, reflecting cautious business sentiment and moderate investment activity. The effective implementation of infrastructure projects, acceleration of capital expenditure, and increased investment in productive sectors are expected to strengthen economic growth in the coming quarters.

d) The banking industry continued to operate under adequate liquidity conditions with increased competition in both deposit mobilization and credit expansion. Banks remained focused on maintaining asset quality, strengthening risk management, enhancing digital banking services, improving operational efficiency, and ensuring compliance with evolving regulatory requirements. The sector continues to play a pivotal role in mobilizing financial resources and supporting sustainable economic development.

e) Against this backdrop, Everest Bank Limited maintained its focus on prudent risk management, sound corporate governance, sustainable business growth, and customer-centric banking services. The Bank continued to strengthen

Net trading income	82,322	680,101	79,055	468,682
Other operating income	(346)	46,801	122,199	69,114
Total operating income	2,933,590	11,864,625	2,993,713	11,170,617
Impairment charge/(reversal) for loans and other losses	(504,523)	272,873	(428,275)	(155,327)
Net operating income	3,438,112	11,591,752	3,421,987	11,325,943
Operating expense
Personnel expenses	704,774	2,847,322	713,458	2,640,457
Other operating expenses	80,300	954,564	272,109	1,010,647
Depreciation & Amortisation	172,273	405,414	171,356	326,421
Operating Profit	2,480,766	7,384,452	2,265,065	7,348,417
Non operating income	5,496	5,496	-	10,688
Non operating expense	(337)	2,897	-	2,152
Profit before income tax	2,486,600	7,387,051	2,265,065	7,356,954
Income tax expense
Current Tax	745,980	2,317,115	952,640	2,577,341
Deferred Tax	-	-	(60,291)	(60,291)
Profit for the period	1,740,620	5,069,936	1,372,716	4,839,903
Condensed Statement of Comprehensive Income
Profit/(Loss) for the period	1,740,620	5,069,936	1,382,267	4,839,903
Other Comprehensive Income	75,977	118,442	(3,384)	(54,415)
Total Comprehensive Income	1,816,597	5,188,378	1,378,884	4,785,488
Earnings per share
Basic earnings per share	-	36.95	-	37.39
Diluted earnings per share	-	36.95	-	37.39
Profit attributable to:
Equity holders of the Bank	1,740,620	5,069,936	1,382,267	4,839,903
Non-controlling interest	-	-	-	-
Profit for the period	1,740,620	5,069,936	1,382,267	4,839,903
Ratios as per NRB Directive
Capital Fund to RWA	-	-

Tier 1 Capital to RWA - 9.98% - 10.44%

CET 1 Capital to RWA - 9.98% - 10.44%

Non-Performing Loan (NPL) to Total Loan	-	-
Total Loan Loss Provision to Total NPL	-	-
Cost of Funds	-	-
Credit to Deposit Ratio	-	-
Base Rate	-	-
Base Rate Average (Applicable)	-	-
Interest Rate Spread	-	-
Market Share Price (in Rs.)	-	695.00	-	701.56
Return on Total Assets (Annualized in %)	-	-
Return on Equity (Annualized in %)	-	-
Net Worth Per Share (in Rs.)	-	256.47	-	246.74
Total Assets Per Share	-	2,796.79	-	2,809.18

Notes:

१. The bank has adopted NFRS 9 for Expected Credit Loss Model and presented it in the financial statement as per the Expected Credit Loss Related Guidelines, 2024 issued by NRB. Provision for the quarter as per NRB Norms comes to the Higher side as compared to ECL Model hence, the bank has booked loan loss provisions as per NRB Norms.

२. Interest income recognition on loans and advances is recognized as per the Guidance Note on Interest Income Recognition, 2025 issued by NRB.

३. The loans and advances include accrued interest receivable, and staff loans are presented with net of impairment charges.

४. Regulatory adjustment on Accrued Interest Receivable, possible losses on Investment Property (NBA) and Interest Capitalized on Term Loan has been made as per NRB Directive.

५. Previous year figures have been reclassified and regrouped wherever necessary to make the same comparable with the current year's figure.

६. The above figures are subject to change upon otherwise as per the direction of the Regulators and/or Auditor.

७. Detailed interim financial reports have been published in our Bank's website. (www.everestbankltd.com).

its financial position through disciplined balance sheet management, adequate capital and liquidity, portfolio diversification, and continuous enhancement of digital banking capabilities.

f) The Bank remains committed to financing productive sectors of the economy while maintaining prudent credit underwriting standards and effective risk management practices. Continuous investment in technology, operational excellence, cybersecurity, human capital, and service quality remains central to the Bank's long-term strategy.

g) Management remains confident that the Bank's strong capital base, sound governance framework, experienced management team, diversified business portfolio, and prudent risk management practices will enable it to navigate evolving economic conditions effectively and create sustainable value for shareholders and all other stakeholders. The Bank will continue to align its business strategies with Nepal Rastra Bank's regulatory framework while supporting Nepal's economic growth through responsible and sustainable banking.

3. Details relating to legal action

No major legal proceedings have been committed by or against the bank, its promoters, or its directors' concerning violations of current laws, criminal activities, or financial misconduct, apart from those commonly linked to regular banking practices.

4. Analysis of share transactions and progress of the bank

(i) The management holds a neutral stance regarding the bank's share transactions in the securities market, as the pricing and trading of its shares are determined by open market activities at the Nepal Stock Exchange.

(ii) This section provides the bank's highest, lowest, and closing share prices, as well as the total volume of shares traded and the number of trading days during the quarter.

Highest Price : Rs. 735.00 Lowest Price: Rs. 670.00 Last Price: Rs. 695.00

Transaction Volume : 20,22,140 no. of shares Days of transaction: 64

5. Problems and Challenges

Internal Challenges

• The banking sector is presently facing a surplus of liquidity.

• Business expansion is constrained by restrictions on capital access.

• Managing operational expenses is proving to be challenging.

• Attracting qualified and experienced talent, along with providing adequate local training, remains a significant hurdle.

• It is becoming increasingly difficult to generate revenue from non-interest sources.

• Ensuring prompt loan recovery and sustaining high-quality risk assets continue to be persistent challenges.

External Challenges

• Geopolitical tensions, policy uncertainty and traded tariff/disputes, ongoing conflicts in the Middle East and other global hotspots are likely to pose a significant threat to economic stability.

• Constant regulatory changes at both national and international levels can create compliance challenges, necessitating substantial modifications to operational processes.

• Variations in interest rates can affect a bank's net interest margin and profitability, as well as impact its lending and deposit activities.

• A heightened emphasis on Environmental, Social and Governance (ESG) factors may compel banks to adapt their operations to sustainable practices, influencing their lending and investment choices.

• There is a rising trend in cyber fraud incidents. Lack of Cyber security Awareness and difficult Terrain makes branch expansion costly, especially in rural areas.

• Nepal is still added to the Financial Action Task Force (FATF) Grey List. This would have significant consequences for Nepal's banking Industry and financial sector, as well as the broader economy.

6. Strategy

To improve the bank's operations, prioritize digital innovation and adopt digital banking solutions to enhance customer experience, bank is offering digital and online services to facilitate smooth & seamless financial and non-financial transactions.

• Evaluate customer feedback and market dynamics to remain competitive.

• To gain insight into customer preferences, provide personalized and tailored services, and enhance customer relationships.

• Launch new financial products and services to broaden the customer base and address their variety of needs.

• Efficiently manage assets and liabilities while optimizing internal processes to lower costs, boost efficiency, and deliver faster services to clients.

• Establish strong cyber-security protocols.

• Invest in employee training to enhance service quality. Educate customers about financial literacy, Banking products, services, and digital platforms to promote their adoption and support financial inclusion in underserved areas.

• Continuously monitor both internal and external environmental shifts, adopting a proactive stance. Allocate resources to strategic marketing initiatives to increase awareness of the bank's offerings and strengthen its brand image.

• Develop a comprehensive risk management framework alongside a resilient AML/CFT strategy. Enhancing risk management practices to ensure financial stability and foster customer trust.

7. Corporate Governance

EBL is dedicated to upholding exemplary standards of corporate governance, business integrity, and professionalism across all its operations. This commitment assures stakeholders that the bank is managed ethically, adheres to best practices and relevant legislation, operates within established risk parameters, and actively enhances and safeguards their investments. To facilitate effective and efficient banking operations, Board Level Committees as well as Management level committees have been constituted.

Declaration by the Chief Executive Officer on the Truthfulness and Accuracy of information

I, as on date, hereby take responsibility for the accuracy of the information and details contained in this report. I also hereby declare that to the best of my knowledge and belief, the information contained in this report is true, accurate and complete and there are no other matters concealed, the omission of which shall adversely affect the informed investment decision by the investors.