नबिल बैंकको पहिलो त्रैमासिक वित्तीय विवरण सार्वजनिकNabil Bank Reports 1st Quarter Financial Results

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As On Quarter Ended 31st Ashwin 2083

Group Bank

Particulars	This Quarter Ending	Immediate Previous Year Ending (Audited)	This Quarter Ending	Immediate Previous Year Ending (Audited)
Assets
Cash and Cash Equivalent	8,719,311	7,309,320	8,457,616	-
Due from Nepal Rastra Bank	57,037,676	24,380,465	57,037,676
Placement with Banks and FIs	47,154,146	43,460,570	47,154,146
Derivative Financial Instruments	33,236,018	34,352,706	33,236,018
Other Trading Assets	803,943	1,387,950	-	-
Loans and Advances to Banks and FIs	17,323,648	16,549,368	17,323,648
Loans and Advances to Customers	476,013,619	460,317,394	476,013,619
Investment Securities	118,059,732	128,379,409	117,187,447
Current Tax Assets	-	883,181	-	-
Investment in Subsidiaries	-	-	1,798,000	-
Investment in Associates	233,512	233,512	80,000	-
Investment Property	3,497,463	3,698,561	3,497,463	-
Property and Equipment	4,455,250	4,447,880	4,429,084	-
Goodwill and Intangible Assets	312,639	267,958	304,231	-
Deferred Tax Assets	-	-	-	-
Other Assets	11,120,413	11,275,101	9,147,528	-
Total Assets	777,967,371	736,943,378	775,666,476
Liabilities
Due to Banks and FIs	26,187,675	10,844,879	26,187,675
Due to Nepal Rastra Bank	-	-	-	-
Derivative Financial Instruments	33,039,789	34,997,796	33,039,789
Deposits from Customers	618,910,369	591,625,048	619,231,995
Borrowings	1,473,410	1,519,300	-	-
Current Tax Liabilities	213,431	-	261,725	-
Provisions	-	-	-	-
Deferred Tax Liabilities	1,676,979	1,585,081	1,718,261	-
Other Liabilities	11,875,870	11,014,732	11,300,312
Debt Securities Issued	12,475,060	12,735,808	12,475,060
Subordinated Liabilities	-	-	-	-
Total Liabilities	705,852,582	664,322,645	704,214,817
Equity
Share Capital	33,409,847	32,056,997	33,409,847
Share Premium	-	-	-	-
Retained Earnings	2,427,491	5,389,901	2,264,567	-
Reserves	35,967,359	34,851,219	35,777,246
Total Equity Attributable to Equity Holders	71,804,696	72,298,117	71,451,660
Non Controlling Interest	310,093	322,616	-	-

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	-	12.19	-	12.85	-	11.67	-	12.67
Tier-1 Capital to RWA	-	9.64	-	10.04	-	9.10	-	9.55
CET-1 Capital to RWA	-	8.86	-	10.04	-	8.32	-	9.55
Gross Non-Performing Loan (NPL) to Total Loan	-	4.06	-	4.31	-	4.06	-	4.31
Net Non-Performing Loan (NPL) to Total Loan	-	0.63	-	0.97	-	0.63	-	0.97
Total Loan Loss Provision to Total NPL	-	120.56	-	108.71	-	120.56	-	108.71
Costs of Funds	-	2.92	-	4.13	-	2.92	-	4.13
Credit to Deposit Ratio	-	80.01	-	78.14	-	80.01	-	78.14

Base Rate (3 Months Average) - 4.41 - 5.58 - 4.41 - 5.58

Interest Rate Spread	-	3.17	-	3.51	-	3.17	-	3.51
Return on Equity (Annualized)	-	14.10	-	9.76	-	13.99	-	10.70
Return on Assets (Annualized)	-	1.34	-	0.95	-	1.33	-	1.05

STATEMENT OF DISTRIBUTABLE PROFIT OR LOSS (For the Quarter Ended 31st Ashwin 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	2,555,105	1,756,991
Transfer from Fair Value Reserve	-	-

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

a. General reserve	(511,021)	(351,398)
b. Foreign exchange fluctuation fund	(15,197)	(13,334)
c. Capital redemption reserve (Debenture Redemption Reserve)	(397,518)	(355,852)
d. Corporate social responsibility fund	(25,551)	(17,570)
e. Employees' training fund	(10,476)	1,490
f. Investment adjustment reserves	-	-
g. Others:	(98,100)	1,043

- Cash Dividend ( Nabil 8% PNCPS) (101,918) -

- Contingent reserve - -

- CSR Expenses routed through SoPL 3,818 1,043

Profit or (loss) before regulatory adjustment	1,497,242	1,021,371
Regulatory adjustment : |
a. Interest receivable (-)/previous accrued interest received (+)	(184,897)	(265,616)
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 (+)	100,086	110,827
e. Deferred tax assets recognised (-)/ reversal (+)	-	-
f. Goodwill recognised (-)/ impairment of Goodwill (+)	-	-
g. Bargain purchase gain recognised (-)/reversal (+)	-	-
h. Actuarial loss recognised (-)/reversal (+)	-	-
i. Other (+/-)	(41,703)	(4,344)
Total Adjustment in Regulatory Reserve	(126,514)	(159,133)
Net Profit for the Quarter end available for distribution	1,370,727	862,239
Total Equity	72,114,789	72,620,733	71,451,660	7
Total Liabilities and Equity	777,967,371	736,943,378	775,666,476	73

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

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS (For the Quarter Ended 31st Ashwin 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	9,619,919	9,619,919	9,810,280	9,810,280	9,611,832	9,611,832	9,801,139
Interest Expense	4,897,464	4,897,464	5,917,505	5,917,505	4,874,820	4,874,820	5,899,879
Net Interest Income	4,722,455	4,722,455	3,892,774	3,892,774	4,737,012	4,737,012	3,901,260
Fee and Commission Income	1,334,830	1,334,830	1,114,018	1,114,018	1,216,630	1,216,630	1,023,103
Fee and Commission Expense	305,713	305,713	234,664	234,664	297,132	297,132	224,375
Net Fee and Commission Income	1,029,116	1,029,116	879,354	879,354	919,499	919,499	798,728
Net Interest, Fee and Commisson Income	5,751,572	5,751,572	4,772,128	4,772,128	5,656,511	5,656,511	4,699,987
Net Trading Income	314,930	314,930	(5,245)	(5,245)	349,555	349,555	225,069
Other Operating Income	160,379	160,379	334,533	334,533	130,451	130,451	349,053
Total Operating Income	6,226,880	6,226,880	5,101,416	5,101,416	6,136,516	6,136,516	5,274,110
Impairment Charge/ (Reversal) for Loans and Other Losses	164,012	164,012	647,227	647,227	164,012	164,012	647,227
Net Operating Income	6,062,869	6,062,869	4,454,189	4,454,189	5,972,504	5,972,504	4,626,883
Operating Expense
Personnel Expenses	1,707,383	1,707,383	1,501,297	1,501,297	1,680,680	1,680,680	1,478,551
Other Operating Expenses	465,694	465,694	396,794	396,794	453,026	453,026	387,542
Depreciation & Amortisation	169,991	169,991	184,608	184,608	166,850	166,850	180,904
Operating Profit	3,719,801	3,719,801	2,371,489	2,371,489	3,671,949	3,671,949	2,579,886
Non Operating Income	2,905	2,905	5,760	5,760	2,905	2,905	5,760
Non Operating Expense	2,402	2,402	103,401	103,401	2,402	2,402	103,401
Profit Before Income Tax	3,720,304	3,720,304	2,273,848	2,273,848	3,672,452	3,672,452	2,482,245
Income Tax Expense
Current Tax	1,132,355	1,132,355	739,895	739,895	1,117,347	1,117,347	725,254
Deferred Tax	141	141	(77,498)	(77,498)	-	-	-
Profit/(Loss) for the Period	2,587,808	2,587,808	1,611,451	1,611,451	2,555,105	2,555,105	1,756,991

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (For the Quarter Ended 31st Ashwin 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	2,587,808	2,587,808	1,611,451	1,611,451	2,555,105	2,555,105	1,756,991
Other Comprehensive Income (Net of income tax)	162,721	162,721	(376,746)	(376,746)	145,810	145,810	(364,396)
Total Comprehensive Income	2,750,529	2,750,529	1,234,705	1,234,705	2,700,915	2,700,915	1,392,596
Annualized Basic Earnings per Share (Equity Shareholders)	-	34.34	-	23.37	-	33.89	-
Annualized Diluted Earnings per Share (Equity Shareholders)	-	34.34	-	22.26	-	33.89	-
Total Comprehensive Income Attributable to:
Equity-Holders of the Bank	2,745,147	2,745,147	1,230,920	1,230,920	2,700,915	2,700,915	1,392,596
Non-Controlling Interest	5,382	5,382	3,785	3,785	-	-	-
Total Comprehensive Income	2,750,529	2,750,529	1,234,705	1,234,705	2,700,915	2,700,915	1,392,596

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

Opening balance in retained earnings	5,168,845	3,855,506
Adjustment (+/-)	-	-
Distribution
Bonus Share Issued	(1,352,850)	-
Cash Dividend Paid	(2,922,156)	-
Total distributable profit as on quarter end date	2,264,567	4,717,744
Annualized Distributable profit per share	22.08	26.76

The previous year's distributable profit has been restated based on the audited opening retained earnings. The distributable profit for the corresponding quarter of the previous year is presented before the distribution of dividends.

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.

• Pursuant to "NFRS 9 - Expected Credit Loss Related Guidelines, 2024", the Bank applies the prescribed regulatory backstop and recognizes impairment on credit exposures based on the higher of the Expected Credit Loss (ECL) calculated under NFRS 9 and the regulatory provision required under NRB Unified Directive No. 02.

• Interest income on loans and advances has been recognized in accordance with the NRB Guidance Note on Interest Income Recognition, 2025.

• 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) 33.89

Price Earnings Ratio (Times) 16.14

Net Worth Per Share (Equity Shareholders) (NPR) 233.9

Total Assets Per Share (Equity Shareholders) (NPR) 2,730.27

LD Ratio (%) 31.01

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 Shares Capital)/ Number of Equity Shares

2. RELATED PARTY DISCLOSURE

• Group comprises of Nabil Bank Ltd. (the Bank), 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

• Following the capitalization of a 5% bonus share issued to equity shareholders during the quarter, the Bank's paid-up capital increased by NPR 1.35 billion. The total capital also includes Nabil 8% Perpetual Non-Cumulative Preference Shares (Nabil 8% PNCPS) amounting to NPR 5 billion, comprising 50,000,000 shares at a face value of NPR 100 each, which were issued in the previous year.

• 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) 581

Minimum Price (NPR) 525

Closing Price (NPR) 547

Total Units Traded 3,491,173

Total Days Traded 61

6. PROBLEMS AND CHALLENGES

Internal:

• Managing Non-Performing Assets (NPAs) amid the prevailing economic slowdown.

• 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.