नबिल बैंकको चौथो त्रैमासिक वित्तीय विवरण (आ.व. २०७९/८०)Nabil Bank Q4 Financial Statement FY 2079/80

Nabil Bank

Unaudited Financial Results

4th Quarter of FY 2079/80

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As On Quarter Ended 32nd Ashadh 2080 (July 16th, 2023)

Particulars Group-This Quarter Ending Group-Immediate Previous Year Ending Bank-This Quarter Ending
Assets
Cash and Cash Equivalent	7,211,695	12,823,207	7,081,291
Due from Nepal Rastra Bank	24,380,465	21,309,898	24,380,465
Placement with Banks and Fls	43,460,570	24,279,366	43,460,570
Derivative Financial Instruments	34,352,706	20,345,559	34,352,706
Other Trading Assets	1,317,004	1,601,785	-
Loans and Advances to Banks and Fls	16,549,368	14,195,506	16,549,368
Loans and Advances to Customers	460,317,774	410,992,041	460,317,774
Investment Securities	128,419,037	117,675,148	127,535,348
Current Tax Assets	881,601	1,050,807	839,665
Investment in Subsidiaries	-	-	1,798,000
Investment in Associates	197,793	201,683	80,000
Investment Property	3,698,561	4,067,766	3,698,561
Property and Equipment	4,445,990	4,488,534	4,420,516
Goodwill and Intangible Assets	267,958	380,056	260,436
Deferred Tax Assets	-	-	-
Other Assets	11,510,214	9,928,250	9,956,924
Total Assets	737,010,736	643,339,607	734,731,625
Liabilities
Due to Banks and Fls	10,368,086	8,633,747	10,368,086
Due to Nepal Rastra Bank	-	-	-
Derivative Financial Instruments	34,997,796	20,401,917	34,997,796
Deposits from Customers	592,042,248	524,057,692	592,559,395
Borrowings	1,519,300	463,000	-
Current Tax Liabilities	-	-	-
Provisions	-	-	-
Deferred Tax Liabilities	1,582,654	1,711,608	1,655,884
Other Liabilities	11,173,794	15,092,201	10,508,091
Debt Securities Issued	12,735,808	9,630,773	12,735,808
Subordinated Liabilities	-	-	-
Total Liabilities	664,419,687	579,990,938	662,825,061
Equity
Share Capital	32,056,997	27,056,997	32,056,997
Share Premium	-	-	-
Retained Earnings	5,347,269	4,160,444	5,169,148
Reserves	34,864,721	31,835,840	34,680,420
Total Equity Attributable to Equity Holders	72,268,987	63,053,281	71,906,564
Non-Controlling Interest	332,062	295,389	-

RATIOS AS PER NRB DIRECTIVE (%)

Particulars Group Current Year This Quarter Group Current Year Upto This Quarter (YTD) Group Previous Year Corresponding This Quarter Group Previous Year Corresponding Upto This Quarter (YTD) Bank Current Year This Quarter Bank Current Year Upto This Quarter (YTD) Bank Previous Year Corresponding This Quarter Bank Previous Year Corresponding Upto This Quarter (YTD)

Capital Fund to RWA	-	12.91	-	12.17	-	12.37	-	11.81
Tier-1 Capital to RWA	-	10.24	-	9.69	-	9.68	-	9.31
CET-1 Capital to RWA	-	9.43	-	9.69	-	8.87	-	9.31
Gross Non-Performing Loan (NPL) to Total Loan	-	4.20	-	4.48	-	4.20	-	4.48
Net Non-Performing Loan (NPL) to Total Loan	-	0.58	-	0.95	-	0.58	-	0.95
Total Loan Loss Provision to Total NPL	-	119.73	-	112.85	-	119.73	-	112.85
Costs of Funds	-	3.09	-	4.41	-	3.09	-	4.41
Credit to Deposit Ratio	-	80.18	-	82.48	-	80.18	-	82.48

Base Rate (3 Months Average) - 4.44 - 5.83 - 4.44 - 5.83

Interest Rate Spread	-	3.18	-	3.57	-	3.18	-	3.57
Return on Equity (Annualized)	-	11.85	-	10.11	-	11.76	-	9.77
Return on Assets (Annualized)	-	1.16	-	1.03	-	1.15	-	0.99

STATEMENT OF DISTRIBUTABLE PROFIT OR LOSS (For the Quarter End of Ashadh 2083)

(As per NRB Regulation)

NPR in '000

Particulars Bank	Current Year Upto this Qtr YTD Bank	Previous Year Upto this Qtr YTD
Net profit / (loss) as per statement of profit or loss	7,905,796	5,922,144
Transfer from Fair Value Reserve	65,692	6,435

Less: appropriations (-) / contributions (+):

a. General reserve	(1,594,298)	(1,185,716)
b. Foreign exchange fluctuation fund	(66,986)	(46,549)
c. Capital redemption reserve (Debenture Redemption Reserve)	(1,423,407)	(1,423,407)
d. Corporate social responsibility fund	(79,058)	(59,221)

e. Employees' training fund (4,139) (836)

f. Investment adjustment reserves	(1,441)	(6,742)
g. Others	(100,479)	90,911

- Cash Dividend ( Nabil 8% PNCPS) (233,425) -

- Contingent reserve - 23,374

- CSR Expenses routed through SoPL 132,945 67,537

Profit or (loss) before regulatory adjustment	4,701,680	3,297,018
Regulatory Adjustment :
a. Interest receivable (-)/previous accrued interest received (+)	14,621	655,929
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 (+)	145,996	(209,382)
e. Deferred tax assets recognised (-)/ reversal (+)	33,913	(164,462)
f. Goodwill recognised (-)/ impairment of Goodwill (+)	-	-
g. Bargain purchase gain recognised (-)/reversal (+)	-	-
h. Actuarial loss recognised (-)/reversal (+)	(7,243)	(52,609)
i. Other (+/-)	(193,201)	(48,192)
Total Adjustment in Regulatory Reserve	(5,914)	181,283
Net Profit for the Quarter end of Ashadh	2083	4,695,767	3,478,301
Opening balance in retained earnings	3,855,506	3,082,904
Total Equity	72,591,049	63,348,669	71,906,564
Total Liabilities and Equity	737,010,736	643,339,607	734,731,625

Note: Share Capital for this year includes NPR 5 Billion 'Nabil 8% PNCPS'

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS (For the Quarter Ended 32nd Ashadh 2083)

Particulars Group Current Year This Quarter Group Current Year Upto This Quarter (YTD) Group Previous Year Corresponding This Quarter Group Previous Year Corresponding Upto This Quarter (YTD) Bank Current Year This Quarter Bank Current Year Upto This Quarter (YTD) Bank Previous Year Corresponding This Quarter

Interest Income	9,516,321	37,998,705	10,182,764	40,516,556	9,511,734	37,955,399	10,156,693
Interest Expense	4,987,706	21,040,772	5,896,290	24,168,461	4,961,846	20,946,111	5,883,838
Net Interest Income	4,528,615	16,957,933	4,286,473	16,348,095	4,549,888	17,009,288	4,272,856
Fee and Commission Income	1,554,658	5,071,451	1,468,922	4,616,363	1,443,616	4,667,388	1,397,620
Fee and Commission Expense	359,674	1,167,977	258,044	941,895	340,193	1,126,308	246,013
Net Fee and Commission Income	1,194,984	3,903,475	1,210,878	3,674,467	1,103,422	3,541,079	1,151,607
Net Interest, Fee and Commission Income	5,723,599	20,861,407	5,497,352	20,022,563	5,653,311	20,550,368	5,424,463
Net Trading Income	240,555	1,002,230	198,072	810,779	315,759	1,074,682	210,001
Other Operating Income	51,688	766,585	157,405	716,204	135,308	709,311	73,667
Total Operating Income	6,015,841	22,630,222	5,852,828	21,549,545	6,104,377	22,334,361	5,708,131
Impairment Charge/ (Reversal) for Loans and Other Losses	2,198,394	2,677,173	1,908,205	4,201,412	2,198,394	2,677,173	1,908,205
Net Operating Income	3,817,447	19,953,049	3,944,624	17,348,133	3,905,984	19,657,188	3,799,926
Operating Expense
Personnel Expenses	1,061,510	5,413,383	1,437,789	5,155,051	1,048,985	5,318,993	1,403,966
Other Operating Expenses	652,278	2,038,244	567,030	1,791,680	643,304	2,007,243	550,365
Depreciation & Amortisation	264,037	781,851	236,470	775,023	259,797	766,426	232,472
Operating Profit	1,839,622	11,719,571	1,703,334	9,626,378	1,953,897	11,564,526	1,613,123
Non Operating Income	10,758	147,245	57,071	74,866	4,068	151,135	7,633
Non Operating Expense	-	172,753	44,991	604,218	-	172,753	18,442
Profit Before Income Tax	1,850,380	11,694,063	1,715,415	9,097,027	1,957,966	11,542,908	1,602,315
Income Tax Expense
Current Tax	808,330	3,672,643	920,035	3,089,264	782,902	3,603,199	896,052
Deferred Tax	(23,222)	2,195	(172,971)	(167,054)	33,913	33,913	(164,462)
Profit/(Loss) for the Period	1,065,272	8,019,225	968,351	6,174,817	1,141,150	7,905,796	870,725

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (For the Quarter Ended 32nd Ashadh 2083)

Particulars Group Current Year This Quarter Group Current Year Upto This Quarter (YTD) Group Previous Year Corresponding This Quarter Group Previous Year Corresponding Upto This Quarter (YTD) Bank Current Year This Quarter Bank Current Year Upto This Quarter (YTD) Bank Previous Year Corresponding This Quarter

Profit / (loss) for the Period	1,065,272	8,019,225	968,351	6,174,817	1,141,150	7,905,796	870,725
Other Comprehensive Income	(212,565)	(251,044)	413,053	637,267	(131,121)	(163,845)	412,586
Total Comprehensive Income	852,707	7,768,181	1,381,404	6,812,084	1,010,029	7,741,951	1,283,311
Annualized Basic Earnings per Share (Equity Shareholders)	-	28.78	-	22.82	-	28.36	-
Annualized Diluted Earnings per Share (Equity Shareholders)	-	28.78	-	22.82	-	28.36	-
Total Comprehensive Income attributable to:
Equity-Holders of the Bank	847,764	7,739,801	1,369,883	6,772,468	1,010,029	7,741,951	1,283,311
Non-Controlling Interest	4,943	28,380	11,521	39,616	-	-	-
Total	852,707	7,768,181	1,381,404	6,812,084	1,010,029	7,741,951	1,283,311

EPS (Equity Shareholders) = (Net profit after tax - PNCPS Dividend)/Number of Equity Shares

Distribution:
Bonus Share Issued -
Cash Dividend Paid	(3,382,125)	(2,705,700)
Total Distributable Profit/(Loss)as on quarter end date	5,169,148	3,855,506
Annualized Distributable profit per share on Ashadh End 2083	19.10	14.25

Notes:

• Figures presented above (Including corresponding previous year) may vary with the audited figures if instructed by the banking regulator and/or statutory auditors.

• Group Financial Statements include Nabil Bank Ltd. (Parent Co.), Nabil Investment Banking Ltd. (Subsidiary Co.) and Nabil Stock Dealer limited (Subsidiary Co.).

• All inter-company transactions and outstanding balances among Group Companies are excluded in Group Financial Statements.

• The Bank assessed the expected credit loss (ECL), which resulted in a lower amount compared to the loan loss provision required under NRB Prudential Norms. Accordingly, the Bank has recognized impairment charges based on the provision calculated as per the prudential norms prescribed by Nepal Rastra Bank.

• Interest Income on Loan and Advances has been recognized as per Guidance note on Interest Income Recognition, 2025 issued by NRB.

• Loans and Investments are presented net of impairment charges and includes interest accruals and staff loans. Likewise, deposits include accrued interest payables.

• Personnel Expenses includes provision for staff bonus which has been calculated in line with the provisions in Bonus Act.

• The detailed interim financial statement has also been published in the Bank's website www.nabilbank.com.

1. MAJOR FINANCIAL INDICATORS

Earnings per share (Equity Shareholders) (NPR) 28.36

Price Earnings Ratio (Times) 18.86

Net Worth Per Share (Equity Shareholders) (NPR) 247.28

Total Assets Per Share (Equity Shareholders) (NPR) 2,715.50

LD Ratio (%) 28.87

Note:

a. Earnings per share (EPS) is calculated after deduction of PNCPS dividend (proportionately) and divided by Number of Equity Shares i.e. Earnings per share (Equity Shareholders) = (Net Profit after Tax-PNCPS Dividend)/ Number of Equity Shares

b. Net worth Per Share (Equity Shareholders) = (Total Equity Fund-Preference Share Capital)/ Number of Equity Shares

2. RELATED PARTY DISCLOSURE

• Group comprises of Nabil Bank Ltd. (the Parent), Nabil Investment Banking Ltd. (Subsidiary) and Nabil Stock Dealer Ltd. (Subsidiary).

• Nabil Investment Banking Ltd is a Merchant Banker licensed under Securities Businessperson (Merchant Banker) Regulation, First Amendment 2074 from the Securities Board of Nepal (SEBON). Nabil Stock Dealer Ltd. is a stock dealer / brokerage company licensed under Securities Business Person (Securities Broker and Securities Dealer) Regulation, 2064 from SEBON.

• All transactions between the Bank and the Subsidiaries are executed on arm's length principle. Effects of all inter-company transactions and outstanding balances are excluded in group statements.

• Bank and Nabil Investment Banking Ltd. (Subsidiary) have entered into a Service Level Agreement (SLA) under which the Bank provides various operational supports to Subsidiary.

• Bank has appointed Nabil Investment Banking Ltd (Subsidiary) as its Registrar to Share, Registrar to various Debentures issued by the bank and also the Fund Manager to Mutual Fund Schemes under the Bank's sponsorship.

• All transactions with the Directors and Key Management Personnel are conducted on the basis of Articles of Association and Employee Bylaws of the bank.

3. MANAGEMENT ANALYSIS

• The Bank issued 'Nabil 8% Perpetual Non-Cumulative Preference Shares' (Nabil 8% PNCPS) amounting to NPR 5 billion (50,000,000 Kitta @ NPR 100 Each) during the year. This capital instrument has been reflected under Share Capital in the Bank's Statement of Financial Position. With the issuance of the Nabil 8% PNCPS, the Bank's capital adequacy position is expected to strengthen further, enhancing its resilience and improving the risk absorbing capacity as an Additional Tier-1 capital instrument.

• Management is consistently working on building a strong balance sheet, diversifying its portfolio to cater to the growing demands of the economy, achieving sustainable growth and making investments in high quality assets, ensuring continuity of business, making effective use of its resources and further enhance management and workplace efficiency.

• The Bank has made significant investments in its products, people and technology with the introduction of DigiBank and nBank, has upgraded its IT infrastructure, automated work processes, further enhancing transaction and data security all the while maintaining and improving internal control systems and risk management practices.

• There are no such incidents during the period which might have negative impact on the reserve, profit or cash flow position of the Bank.

4. DETAILS RELATED TO LEGAL PROCEEDINGS

Except in the regular course of business, there are no law-suits of material nature filed by or filed against the Bank/promoters/directors on account of violation of prevailing laws or commission of criminal offences or financial crime.

5. ANALYSIS OF BANK'S SHARES TRANSACTIONS

• The market price of the Bank's share is fully dependent on market movements and the Bank does not comment on its share transactions.

• The Bank has complied with the prevailing disclosure norms and regulatory directives issued by Securities Board of Nepal (SEBON) and Nepal Rastra Bank (NRB).

• Details of share transactions during the quarter:

Maximum Price (NPR) 563.00

Minimum Price (NPR) 505.40

Closing Price (NPR) 534.90

Total Units Traded 3,095,836

Total Days Traded 64

6. PROBLEMS AND CHALLENGES

Internal:

- Management of NPA owing to the economic and political situation of the country

- Challenge of assets growth in the back drop of low economic growth and declining assets quality

- Challenge of improving non- interest revenue

- Challenge of liquidity and interest risk management

External:

- Global geopolitical and economic developments

- Fluctuating/Excess market liquidity position

- Stagnant credit demand

- Impact of low capital expenditure of government on various sectors

- Increasing cyber and information security risks

Bank's strategy to mitigate problems and challenges:

- Prudent management of assets and liabilities

- Effective management of cost through improved productivity and efficiency

- Exploration of alternate business avenues and channels for maintaining the contribution from non-interest income

- Embracing digitization for remarkable improvement in product offerings and service delivery

- Enhancing skill sets of staff for upgrading our service standard

- Investment in IT infrastructure and digitization

7. CORPORATE GOVERNANCE

The Bank has a separate Governance Unit in place for continuous monitoring of governance issues within the Bank. The Board of Directors, Audit Committee and Senior Management are committed to upholding good corporate governance practices in the Bank. The Bank's organization structure, internal control system and management practices are designed keeping best corporate governance practices in mind.

8. DECLARATION BY CHAIRMAN/CEO ABOUT THE TRUTHFULNESS OF FINANCIALS / INFORMATION

I, CEO of the Bank, take responsibility on the truthfulness of the information and particulars disclosed in this report to the best of my knowledge. Further, I declare that the particulars mentioned in this report, to the best of my knowledge, are true, fair and complete at the time of publication of this report and have not knowingly concealed any material particulars and information for investors to take informed decisions.