एभरेष्ट बैंकको ३० औं वार्षिक साधारण सभा र वित्तीय विवरण सार्वजनिकEverest Bank's 30th Annual General Meeting and Financial Statements Publicized

Everest Bank Limited

Notice Regarding the 30th Annual General Meeting

(First published date: 2083/01/15 BS)

As per the decision of the 402nd meeting of the Board of Directors held on 2083 Bhadra 18 BS, the 32nd Annual General Meeting of this bank will be held on the following date, time, and place to discuss the following proposals. This notice has been published for the information of all shareholders.

Date of Meeting: Friday, 2083 Ashoj 14 BS corresponding to 30 September 2026

Venue: Agrawal Chamber, Bhatbhateni, Kathmandu

Time: 10:00 AM

Agenda for the 32nd Annual General Meeting of the Bank

1. Report of the Chairman on behalf of the Board of Directors.

2. To discuss and approve the audited Balance Sheet as of Ashadh 32, 2083 BS, the Profit and Loss Account for the fiscal year 2082/83 BS ended on the same date, and the Cash Flow Statement for the same period, along with the auditor's report.

3. To discuss and approve the proposal recommended by the 402nd meeting of the Board of Directors held on 2083/01/15 BS to provide bonus shares and cash dividends to shareholders as follows:

(a) Special resolution to issue 15% bonus shares,

(b) To discuss and approve the recommendation to distribute 10% cash dividend (including tax on bonus shares).

4. To pass a special resolution regarding the amendment of the Articles of Association and Bylaws.

The capital will increase after the proposed bonus shares of the bank are issued, so the amendment will be made accordingly.

5. To appoint the auditor for the fiscal year 2083/84 BS and determine their remuneration.

6. Miscellaneous

Share Register Book Closure

For the purpose of the Annual General Meeting, the share register book of the bank will be closed for one day on Thursday, 2083/06/01 BS.

Note:

(1) Shareholders attending the meeting are requested to bring their share certificate or, for dematerialized shares, their DEMAT Account number, DEMAT Statement, and identification documents (such as citizenship certificate/national identity card or any other identification document).

(2) We request concerned shareholders to update their bank account DEMAT Account number for the purpose of depositing cash dividends into their bank accounts.

(3) The attendance register for the Annual General Meeting will be open from 9:00 AM and close at 11:00 AM.

G.P.Rajbahak & Co.

Chartered Accountants

INDEPENDENT AUDITOR'S REPORT

TO THE SHAREHOLDERS OF EVEREST BANK LIMITED

Opinion

We have audited the financial statements of Everest Bank Limited ('the Bank') which comprise the Balance Sheet as at Ashadh 32, 2083 (July 16, 2026), and the Statement of Profit or Loss, the Statement of Other Comprehensive Income, the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the Financial Position of the Bank as at Ashadh 32, 2083 (July 16, 2026), and its Financial Performance and its Cash Flows for the year then ended in accordance with Nepal Financial Reporting Standards (NFRS).

Basis for Opinion

We conducted our audit in accordance with Nepal Standards on Auditing (NSAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Bank in accordance with the ethical requirements that are relevant to our audit of the financial statements in Nepal, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

S.N. Key Audit Matters

a) Interest Income

The Bank has implemented NRB's

Guidance Note on Interest Income

Recognition 2020, effective from Ashadh

2077. The guidelines require staging of

loans based on 1, 2 & 3 for interest

recognition methods - accrual basis for

stage 1 & 2, based on coupon interest rate

and cash basis (income for stage 3) for

interest assets. The transitional arrangement

requires monthly/quarterly booking of

account level and reconciliation between

interest, suspense, accrued interest, and

reversal of interest on cash basis.

Given the significant system changes,

annual interventions during transition,

and risk of misstatement of interest

income, we considered this as a key audit

matter.

b) Investment valuation, identification

and impairment

Investment of the bank comprises of

investment in government bonds,

government bonds and investment in

quoted and unquoted securities. The

valuation of the aforesaid securities has

been done in compliance with NFRS 9 and

NRB directive number 1. The investment

of the government and NRB directive 1

bills has been done on Amortized cost and

has been valued through Fair Value

through Other Comprehensive Income.

The valuation of the investment requires

special attention and further review of the

significance of the amount of the

investment in the financial statement that

came, has been considered as Key Audit

Matters in our audit.

c) Impairment of Loans and Advances

As per NFRS 9 (carve-out issued by ICAN),

bank shall measure impairment loss on

loans and advances at the higher of:

a) Amount derived as per norms

prescribed by NRB for loan loss

provisioning and;

b) Amount determined as per para

5.5 of NFRS 9, applying the

expected credit loss model.

As per the norms prescribed by the NRB,

provision at the prescribed rate shall be

created on the loans and advances based

on overdue status of the facility, as well

as utilization status of the facility,

status of the security etc.

d) Information Technology:

The Bank's digitally stored transactions are

carried out digitally/electronically.

Today's scenario, we have considered

information technology status of the bank

as our key audit areas.

Auditor's Response:

Our audit approach included:

a. Obtaining understanding of the

Bank's implementation framework

and evaluating the Bank's digital

infrastructure, assessing

management's risk awareness,

reviewing cybersecurity controls,

reviewing information security

and management's responses to

identified risks, developing

procedures to test general IT

application controls, verifying system

generated reports, recalculating

interest suspense movements, and

verifying that suspense doesn't

exceed accrued interest.

b. Performed reconciliation between

CBS interest calculations and GL

entries and verified quarterly

interest income aggregation.

Our audit approach regarding

investments of the Bank is based on the

NRB Directives and Nepal Financial

Reporting Standards (NFRS) issued by

Accounting Standards Board of

Nepal.

For investments measured at

amortized cost we verified the

Effective Interest Rate (EIR) and

amortization schedules on a test-check

basis.

For investments measured at fair value

through Other Comprehensive Income

(FVOCI) the fair value of quoted

securities was determined using Level

1 inputs, based on the closing market

price/last traded price available on

NFRS 9 of 16 July 2026. For unquoted

securities, fair value was determined

using Level 2 inputs where observable

inputs were available. Where

observable market inputs were not

available, Level 3 valuation was

applied using the book value for shares

as the basis for determining fair value.

Further, dividend income, bonus

shares, and other income/gains were

verified applicable were cross

referred to the Balance Sheet, Income

Statements and supporting documents.

Our audit approach included reviewing

the overdue status of loans and

advances by obtaining data from the

system and matching the same with

NRB 2.2 report.

Sample credit files were reviewed for

the purpose of assessing the intention

of loan & advances for the intended

purpose, account movement and

account turnover.

We also assessed the expected future

cash flows on the basis of the realizable

value of collateral securities based on

the management's estimates from the

individually significant loans and

collective impairment for homogeneous

groups of loan and advances based on

the purpose of loans and data of historical

experience. The impairment loss was

assessed on the basis of the past due

date from the system as well as data of

the past provision of the defined group

in the past.

We have verified the interest income

and expense recording for each loan

and deposits on the bank's core

banking system of the bank.

As we have verified the provisioning

of NPLs and the overdue status of

loans and advances on the bank's

system, as well as utilization status

of the facility, status of the security

etc.

Other Matter

Depending on the facts and circumstances of the bank and the audit, we have determined that there are no other matters to communicate in our report.

Other Information

The Bank's management is responsible for the preparation of other information. The other information comprises the information included in the Annual Report but does not include the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

Our responsibility is to read the Other Information and, in doing so, consider whether the Other Information is materially inconsistent with the financial statements or our knowledge obtained in the course of our audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this Other Information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged With Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with NFRS and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the bank's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Bank's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is a guarantee that an audit conducted in accordance with NSAs will always detect a material misstatement when it exists.

As part of an audit in accordance with NSAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Bank's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on bank's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidences obtained up to the date of our auditor's report. However, future events or conditions may cause the bank to cease as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Bank to express an opinion on the financial statements.

We communicate with those charged with governance, regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Report on Other Legal and Regulatory Requirements

We have determined to communicate following matters in accordance with the requirements of NRB Directives, Companies Act, 2063, BAFIA, 2073 and other regulatory requirements: -

• We have obtained all the information and the explanations, which, to the best of our knowledge and belief, were necessary for the purpose of our audit.

• Based on our audit, proper books of accounts as required by law have been kept by the Bank.

• The Statement of Financial Position, the Statement of Profit or Loss and Statement of Other Comprehensive Income, the Cash Flow Statement, and the Statement of Changes in Equity dealt with by this report are in agreement with the books of accounts maintained by the Bank.

• Returns received from the branches of the Bank were adequate for the purpose of our audit though the statements are independently prepared.

• The capital fund, risk bearing fund and the provisions for possible impairment of assets of the bank are adequate considering the Directives issued by Nepal Rastra Bank.

In our opinion and to the best of our information and according to the explanations and from our examination of the books of accounts of the Bank, we have not come across any case where the Board of Directors or any office bearer of the Bank have acted contrary to the provisions of law, or committed any misappropriation or caused any loss or damage to the Bank and violated Directives issued by Nepal Rastra Bank or acted in a manner, as would jeopardize the interest and security of the Bank, its shareholders and its depositors.

• The business of the Bank has been conducted satisfactorily and operated within its jurisdiction and has been functioning as per NRB Directives.

Ashesh Rajbahak, FCA

Partner

G.P. Rajbahak & Co.,

Chartered Accountants

Date: August 27, 2026

Place: Kathmandu, Nepal

UDIN: 260831CA00278BSdMD

Financial Position Statement (Balance Sheet)

As of Ashadh 2083 BS

Description Bank
Ashadh	32,	2083	32,	2082
Assets
Cash and Cash Equivalents	1,903,896,045	6,720,639,282
Balances with Nepal Rastra Bank	35,070,383,904	64,715,146,228
Placement with Banks and Financial Institutions	7,994,597,798	7,924,296,581
Derivative Financial Instruments	7,763,965,401	3,570,723,753
Other Trading Assets	-	-
Loans and Advances to Banks and Financial Institutions	11,550,555,388	9,781,599,568
Loans and Advances to Customers	93,515,544,299	99,510,616,596
Investment Securities	56,905,522,480	49,443,437,467
Current Tax Assets	203,149,903	376,634,507
Investment in Subsidiaries	-	-
Investment in Associates	831,041,071	782,144,419
Investment Property	514,494,815	564,295,086
Property, Plant and Equipment	4,015,174,428	4,177,569,452
Goodwill and Intangible Assets	205,979,868	191,999,777
Deferred Tax Assets	-	-
Other Assets	2,149,097,043	1,894,847,169
Total Assets	223,821,801,719	236,839,245,291
Liabilities
Balances Due to Banks and Financial Institutions	2,395,989,584	3,439,943,308
Balances Due to Nepal Rastra Bank	-	-
Derivative Financial Instruments	7,592,090,715	3,598,403,990
Deposits from Customers	316,098,879,872	298,816,400,110
Borrowings	-	-
Current Tax Liabilities	-	-
Provisions	-	-
Deferred Tax Liabilities	11,095,767	48,299,763
Other Liabilities	15,258,599,448	14,200,191,441
Debt Instruments Issued	3,603,213,000	3,603,213,000
Subordinated Liabilities	-	-
Total Liabilities	344,959,868,346	323,699,745,192
Equity
Share Capital	12,701,375,994	12,701,375,994
Share Premium	236,461,884	236,461,884
Retained Earnings	5,209,522,480	4,893,096,198
Reserves and Funds	13,011,305,025	13,863,239,049
Total Equity Attributable to Shareholders of the Bank	35,171,073,393	31,694,500,099
Non-controlling Interest	-	-
Total Equity	35,171,073,393	31,694,500,099
Total Liabilities and Equity	380,130,941,739	355,394,245,291
Net Assets Per Share	256.30	225.74
Statement of Profit or Loss
For the period from Shrawan	1,	2082	32,	2083
Description Bank
Ashadh	32,	2083	32,	2082
Interest Income	20,083,879,969	20,814,291,205
Interest Expense	10,992,123,336	11,119,639,283
Net Interest Income	9,950,757,333	9,694,651,922
Fee and Commission Income	2,446,805,227	1,977,806,333
Fee and Commission Expense	343,661,036	347,731,052
Net Fee and Commission Income	2,103,144,191	1,630,075,281
Net Interest, Fee and Commission Income	11,053,901,524	11,324,727,203
Net Trading Income	693,999,867	486,699,999
Other Operating Income	91,917,503	69,114,193
Total Operating Income	11,839,818,894	11,880,541,395
Impairment Charge/(Reversal) for Loans and Other Assets	278,095,136	(155,329,995)
Net Operating Income	11,561,723,758	11,325,211,390
Operating Expenses
Personnel Expenses	2,855,990,969	2,420,450,250
Other Operating Expenses	860,397,966	1,010,840,305
Depreciation and Amortization	403,443,548	326,421,065
Operating Profit	7,441,891,275	7,440,497,465
Non-Operating Income	5,496,210	10,887,923
Non-Operating Expense	2,131,455	2,151,215
Profit Before Tax	7,445,256,030	7,453,958,773

Income Tax Expense/(Benefit)

Current Tax	2,399,940,556	2,434,341,444
Deferred Tax	(180,620,990)	(60,211,044)
Net Profit for the Year	5,079,436,442	5,839,828,371
Profit Distribution:
To Shareholders of the Bank	5,079,436,442	5,839,828,371
Non-controlling Interest	-	-
Net Profit for the Year	5,079,436,442	5,839,828,371
Earnings Per Share
Basic Earnings Per Share	37.02	37.39
Diluted Earnings Per Share	37.02	37.39

Cash Flow Statement

As of Ashadh 2083 BS

Description Bank
Ashadh	32,	2083	32,	2082
Cash Flow from Operating Activities
Interest Received	19,214,249,540	17,539,848,528
Fees and Other Income Received	2,244,805,227	1,977,806,333
Dividends Received	-	-
Other Operating Activities Received	666,833,012	533,733,714
Interest Paid	(10,324,080,925)	(11,869,806,527)
Commission and Fees Paid	(343,661,036)	(347,731,052)
Employee Benefits Paid	(2,855,990,969)	(2,425,178,180)
Other Expenses Paid	(900,274,671)	(1,086,992,093)
Cash Flow Before Changes in Operating Assets/Liabilities	4,981,880,178	4,321,680,823