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आधिकारिक सूचनाOfficial AnnouncementFinancial Analysis
1 Nov, 2026
नेपाल बैंक लिमिटेडको २०८३ असोज मसान्तको अपरिष्कृत वित्तीय विवरण

नेपाल बैंक लिमिटेडको २०८३ असोज मसान्तको अपरिष्कृत वित्तीय विवरणNepal Bank Limited Unaudited Financial Statement for Q1 2083

वर्ग:Category:
Financial Analysis
प्रकाशित मिति:Published:
Published on November 1, 2026

Head Office

Dharmapath, Kathmandu

Interim Financial Statement (Unaudited)

Condensed Statement of Financial Position

As on Quarter ended 31st Ashoj , 2083 (Mid October 2026)

Figures in NPR

AssetsThis Quarter EndingImmediate Previous Year Ending (Unaudited)
Cash and cash equivalent65,889,438,48069,028,546,363
Due from Nepal Rastra Bank46,690,399,35831,090,832,447
Placement with Bank and Financial Institutions9,864,832,50010,007,942,500
Derivative Financial Instrument10,896,630,3378,961,897,984
Other Trading Assets189,898,761187,883,891
Loan and advances to B/FIs12,222,826,32511,870,370,135
Loan and Advances to Customers250,075,963,340243,590,656,227
Investment Securities77,127,035,46480,907,173,241
Current Tax Assets2,050,399,9272,274,507,135
Investment in Subsidiaries--
Investment in Associates4,960,653,6344,286,192,000
Investment Property360,804,423361,852,896
Property and Equipment13,316,759,37013,315,438,379
Goodwill and Intangible assets44,877,44447,239,414
Deferred Tax Assets--
Other Assets10,242,140,5578,523,163,505
Total Assets503,932,659,919484,453,696,116
Liabilities
Due to Bank and Financial Institutions1,927,369,1091,201,299,427
Due to Nepal Rastra Bank--
Derivative Financial Instruments10,726,654,9258,975,280,253
Deposits from Customers434,131,911,233415,182,034,292
Borrowings--
Current Tax Liabilities--
Provisions212,139,305208,014,441
Deferred Tax Liabilities4,527,900,5494,620,763,677
Other Liabilities5,873,482,0008,495,904,558
Debt securities issued3,496,481,0453,496,291,956
Subordinated Liabilities--
Total Liabilities460,895,938,166442,179,588,603
Equity
Share Capital14,694,022,92814,694,022,928
Share Premium--
Retained Earnings2,752,845,0622,327,960,909
Reserves25,589,853,76325,252,123,675
Total equity attributable to equity holders43,036,721,75342,274,107,512
Non-controlling interest--
Total Equity43,036,721,75342,274,107,512
Total Liabilities and Equity503,932,659,919484,453,696,116

Condensed Statement of Profit or Loss

For the Quarter Ended 31st Ashoj 2083

Figures in NPR

Particulars Current Year This Quarter Current Year Up to This Quarter (YTD) Previous Year Corresponding This Quarter Previous Year Corresponding Up to This Quarter (YTD)

Interest Income5,594,466,5645,594,466,5645,583,299,3295,583,299,329
Interest expense3,104,891,7663,104,891,7663,013,798,9403,013,798,940

Statement of Distributable Profit or Loss

For the Quarter Ended 31st Ashoj 2083

(As per NRB Regulation)

Figures in NPR

Particulars Current Year Up to this Qtr. YTD Previous Year Corresponding Qtr. YTD
Net Profit or (loss) as per statement of profit or loss832,187,832588,287,499
Appropriations |
a. General Reserve(166,437,566)(117,657,500)
b. Exchange Fluctuation Fund--
c. Capital Redemption Reserve--
d. Corporate Social Responsibility Fund22,467,745(5,763,292)
e. Employees Training Fund(15,224,963)(14,971,918)
f. Others--
-Employees Welfare Fund(8,321,878)(5,882,875)
-Debenture Redemption Reserve(97,222,222)(97,222,222)
Profit or (loss) before regulatory adjustment567,448,947346,789,692
Regulatory adjustment |
a. Interest receivable (-)/previous accrued interest received (+)(230,099,645)(285,623,913)
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 (+)550,815-
e. Deferred tax assets recognized (-)/ reversal (+)42,268,883(51,588,129)
f. Goodwill recognized (-)/ impairment of Goodwill (+)--
g. Bargain purchase gain recognized (-)/reversal (+)--
h. Actuarial loss recognized (-)/reversal (+)61,433,609(130,680,646)

i. Other |

- Interest Capitalized Reserve (16,718,456) -

-Investment Adjustment Reserve--
Net Profit for Quarter ended Ashoj2083424,884,153(121,102,996)
Opening Retained Earnings as on Shrawan1,20832,327,960,909(449,089,958)
Adjustments (+/-)--
Distribution: |
Bonus Shares issued--
Cash Dividend paid--
Total Distributable profit or (loss) as on Ashoj end20832,752,845,062(570,192,954)
Annualized Distributable Profit/Loss per share18.73(15.52)

Disclosure as per Securities Registration and Issuance Regulation, 2073

(Related to sub-Rule (1) of Rule 26)

Quarterly Detail as of Ashoj end 2083 (October 17, 2026)

1. Financial Statements

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

Published along with this report.

B. Related Party Disclosure

Nepal Government holds 51% shares and has representation on the board of directors of the bank and hence it is considered to be a related party to the bank.

Directors, Chief Executive Officer and other Key Management Personnel (KMP) are also considered to be related parties to the bank. No transaction between the bank and KMP's was observed other than prescribed under the Employee Service Bylaw of the bank.

C. Major Financial Highlights
a. Earnings per Share (Annualized) NPR22.6545.37
b. Market Value per Share NPR304.100.67
c. Price Earnings Ratio (Times)13.42292.89

2. Management Analysis

• Net interest income has decreased in comparison to same period of previous year with reduction in spread rate.

• Net profit for the current financial year has increased with increment in fee and commission income, net trading income and reduced tax expenses.

• With increased profitability, retained earning has increased in comparison to same period of the previous year.

• The liquidity is sufficient to meet the lending opportunities. However, low credit demand in the economy has significant

Net interest income2,489,574,7982,489,574,7982,569,500,3882,569,500,388
Fees and Commission Income407,470,305407,470,305318,229,912318,229,912
Fees and Commission Expense56,372,84756,372,84776,735,49676,735,496
Net fee and commission income351,097,458351,097,458241,494,417241,494,417
Net interest, fee and commission income2,840,672,2562,840,672,2562,810,994,8052,810,994,805
Net trading income124,441,012124,441,01235,557,60635,557,606
Other operating income171,139,675171,139,675138,413,291138,413,291
Total operating income3,136,252,9433,136,252,9432,984,965,7022,984,965,702
Impairment charge/(reversal) for loans and other losses546,464,674546,464,674641,948,956641,948,956
Net operating income2,589,788,2692,589,788,2692,343,016,7462,343,016,746
Operating Expenses
Personnel Expense1,237,290,8961,237,290,8961,065,552,7391,065,552,739
Other Operating Expense277,600,552277,600,552277,920,762277,920,762
Depreciation and Amortization79,942,49079,942,49082,422,48682,422,486
Operating profit994,954,331994,954,331917,120,759917,120,759
Non operating Income2,066,4002,066,4001,0001,000
Non operating expense----
Profit before Income tax997,020,731997,020,731917,121,759917,121,759
Income tax Expenses
Current Tax227,878,774227,878,774380,422,389380,422,389
Deferred Tax(63,045,875)(63,045,875)(51,588,129)(51,588,129)
Profit/(loss) for the period832,187,832832,187,832588,287,499588,287,499
Condensed Statement of Comprehensive Income
Profit/(loss) for the period832,187,832832,187,832588,287,499588,287,499
Other Comprehensive Income(69,573,592)(69,573,592)(514,160,603)(514,160,603)
Total Comprehensive Income762,614,240762,614,24074,126,89674,126,896
Basic earning per share22.6516.01
Diluted earning per share22.6516.01
Profit attributable to:
Equity holders of the Bank762,614,240762,614,24074,126,89674,126,896
Non-controlling interests----
Total762,614,240762,614,24074,126,89674,126,896

Ratios as per NRB Directives

Tier 1 Capital to RWA 11.23% 10.10%

CET 1 Capital to RWA 11.23% 10.10%

Capital Fund to RWA 13.64% 13.02%

Return to Equity 7.80% 6.16%

Return to Asset 0.67% 0.59%

Non-Performing Loan (NPL) to total loan 4.61% 5.49%

Total Loan Loss provision to Total NPL 103.09% 98.03%

Cost of Funds 2.83% 3.46%

Credit to Deposit Ratio 61.63% 69.42%

Base Rate 4.37% 5.16%

Interest Rate Spread 3.38% 3.91%

Notes to Interim Financial Statement

1. Above Financial Statements are prepared in accordance with the Nepal Financial Reporting Standards (NFRS) including directives issued by Nepal Rastra Bank.

2. These figures may vary with the audited figures at the instance of external auditor and regulator.

3. Previous Quarter Ending Figures have been regrouped and rearranged wherever necessary which might vary from previous quarter published figures.

4. Loans and advances to customers include Loan to customers and Loan to Employees which have been measured at amortized cost.

5. The provision for Defined benefit obligation and leave are based on Management Assumption.

6. Personnel expenses include employee bonus provision and amortization of the deferred employee benefits of subsidized loans provided as per Employee Service Bylaw of the bank.

7. NFRS adjustments which are subject to regulatory adjustments as per NRB directives have been shown as regulatory adjustments.

8. Other Comprehensive income includes the fair value changes of Investment and actuarial gain /(losses) net of tax.

9. Recognition of interest income has been based upon NRB NFRS 9 ECL Related Guidelines, 2024 and Guidance Note on Interest Income Recognition, 2025. However, the bank while reporting interest income of Stage 1 & 2 loan and advance for the reporting period has applied coupon interest rate.

10. Following regulatory backstop as mentioned in Clause 16 of "NFRS 9- Expected Credit Loss Related Guidelines, 2024" bank has recognized impairment on credit exposures as the higher of total ECL calculated as per NFRS 9 and existing regulatory provisions as mentioned in NRB Unified Directives no 02.

11. The detailed interim report has been published in the bank's website www.nepalbank.com.np.

impact on overall banking industry.

• The bank aims to achieve the objectives of business growth and profitability through enhanced customer service, business diversification, digitization and deposit mobilization.

• The bank is promoting financial inclusion through conducting various financial literacy programs, awareness videos.

• The bank is constantly adopting digital channels and IT infrastructure to allow automated transactions.

• The bank has robust risk management and AML/CFT policy in implementation as per international norms.

3. Detail relating to legal action

Except in the regular course of business, there are no lawsuits of material nature filed by or filed against the bank. No notice and information have been received by the bank to date regarding any cases filed for and against promoters/directors/on account of violation of prevailing laws or commission of criminal offenses or financial crime.

4. Analysis of share transactions and progress of the bank

a. Management view on share transactions of the bank in the securities market –

Share transaction of the bank takes place in the secondary market of the Nepal Stock Exchange through open share market operation. Management view on this is neutral. Transaction volume has increased in comparison to immediately preceding quarter.

b. Maximum, minimum, and last share price of the bank, including total number of shares traded and days of transaction during the quarter.

Maximum Price: NPR 311.90 Minimum Price: NPR 253.30 Last Price: NPR 304.10

Transaction volume: 79,85,842 shares Days of transaction: 61

5. Problems and Challenges

Internal

• Non-performing loans and its management.

• Retention of qualified and skilled human resources.

• Risk Management of increasing digitization and digital products.

External

• Concern on world economic growth and supply chain disruption amidst Middle East unrest.

• Decline in growth of construction and productive sector.

• High liquidity in banking sector.

• Slow credit growth due to economic slowdown.

• Stiff competition among bank and financial institutions.

• Impacts of climate change and natural disaster on bank assets.

• Rising inflation across the globe.

Strategy

• Focus on controlled business growth and profit management.

• Digitize the banking services to increase operational efficiency.

• Explore new sectors to increase non-interest income.

• Expedite recovery of non-performing loans.

• Focus on assets quality management.

• Ensure effective customer service with simplified processes.

• Focus on risk management and internal control.

6. Corporate Governance

The Board of the bank is responsible and accountable to the shareholders for ensuring good governance in the bank.

The Risk Management Committee, a committee of the Board, is entrusted to review the overall risks of the bank and recommend the Board for required policy prescription. The meeting of the committee is held at least once in every three months.

The Audit Committee, a committee of the Board, reviews bank's financial position, internal control effectiveness, remarks of internal/external audit/NRB inspection/supervision and gives necessary direction to management and suggestion to the Board.

The Employee Service Facility Committee, a committee of the Board, reviews the facilities and services of the staffs of bank and gives feedback to the Board.

The Anti-Money Laundering (AML) Committee, a committee of the Board, monitors and reviews the AML/CFT and CPF activities of the Bank.

CEO-Level Executive Credit Committee, comprising senior management and head of various business functions of the bank, reviews and monitors the credit portfolio of the bank. The committee also recommends the credit-related proposals to the competent authority.

The Assets and Liability Management Committee (ALCO) is responsible for the prudent risk management. It reviews interest rate risk, liquidity risk, and market risk of the bank regularly.

The Governance Division is responsible for monitoring the governance in the bank and report to the Board and concerned regulatory bodies.

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

I, as at the date, hereby individually accept 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.

Nepal Bank Limited

Dharmapath, Kathmandu

Head Office

Dharmapath, Kathmandu

Interim Financial Statement (Unaudited)

Condensed Statement of Financial Position

As on Quarter ended 31st Ashoj , 2083 (Mid October 2026)

Figures in NPR

AssetsThis Quarter EndingImmediate Previous Year Ending (Unaudited)
Cash and cash equivalent65,889,438,48069,028,546,363
Due from Nepal Rastra Bank46,690,399,35831,090,832,447
Placement with Bank and Financial Institutions9,864,832,50010,007,942,500
Derivative Financial Instrument10,896,630,3378,961,897,984
Other Trading Assets189,898,761187,883,891
Loan and advances to B/FIs12,222,826,32511,870,370,135
Loan and Advances to Customers250,075,963,340243,590,656,227
Investment Securities77,127,035,46480,907,173,241
Current Tax Assets2,050,399,9272,274,507,135
Investment in Subsidiaries--
Investment in Associates4,960,653,6344,286,192,000
Investment Property360,804,423361,852,896
Property and Equipment13,316,759,37013,315,438,379
Goodwill and Intangible assets44,877,44447,239,414
Deferred Tax Assets--
Other Assets10,242,140,5578,523,163,505
Total Assets503,932,659,919484,453,696,116
Liabilities
Due to Bank and Financial Institutions1,927,369,1091,201,299,427
Due to Nepal Rastra Bank--
Derivative Financial Instruments10,726,654,9258,975,280,253
Deposits from Customers434,131,911,233415,182,034,292
Borrowings--
Current Tax Liabilities--
Provisions212,139,305208,014,441
Deferred Tax Liabilities4,527,900,5494,620,763,677
Other Liabilities5,873,482,0008,495,904,558
Debt securities issued3,496,481,0453,496,291,956
Subordinated Liabilities--
Total Liabilities460,895,938,166442,179,588,603
Equity
Share Capital14,694,022,92814,694,022,928
Share Premium--
Retained Earnings2,752,845,0622,327,960,909
Reserves25,589,853,76325,252,123,675
Total equity attributable to equity holders43,036,721,75342,274,107,512
Non-controlling interest--
Total Equity43,036,721,75342,274,107,512
Total Liabilities and Equity503,932,659,919484,453,696,116

Condensed Statement of Profit or Loss

For the Quarter Ended 31st Ashoj 2083

Figures in NPR

Particulars Current Year This Quarter Current Year Up to This Quarter (YTD) Previous Year Corresponding This Quarter Previous Year Corresponding Up to This Quarter (YTD)

Interest Income5,594,466,5645,594,466,5645,583,299,3295,583,299,329
Interest expense3,104,891,7663,104,891,7663,013,798,9403,013,798,940

Statement of Distributable Profit or Loss

For the Quarter Ended 31st Ashoj 2083

(As per NRB Regulation)

Figures in NPR

Particulars Current Year Up to this Qtr. YTD Previous Year Corresponding Qtr. YTD
Net Profit or (loss) as per statement of profit or loss832,187,832588,287,499
Appropriations |
a. General Reserve(166,437,566)(117,657,500)
b. Exchange Fluctuation Fund--
c. Capital Redemption Reserve--
d. Corporate Social Responsibility Fund22,467,745(5,763,292)
e. Employees Training Fund(15,224,963)(14,971,918)
f. Others--
-Employees Welfare Fund(8,321,878)(5,882,875)
-Debenture Redemption Reserve(97,222,222)(97,222,222)
Profit or (loss) before regulatory adjustment567,448,947346,789,692
Regulatory adjustment |
a. Interest receivable (-)/previous accrued interest received (+)(230,099,645)(285,623,913)
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 (+)550,815-
e. Deferred tax assets recognized (-)/ reversal (+)42,268,883(51,588,129)
f. Goodwill recognized (-)/ impairment of Goodwill (+)--
g. Bargain purchase gain recognized (-)/reversal (+)--
h. Actuarial loss recognized (-)/reversal (+)61,433,609(130,680,646)

i. Other |

- Interest Capitalized Reserve (16,718,456) -

-Investment Adjustment Reserve--
Net Profit for Quarter ended Ashoj2083424,884,153(121,102,996)
Opening Retained Earnings as on Shrawan1,20832,327,960,909(449,089,958)
Adjustments (+/-)--
Distribution: |
Bonus Shares issued--
Cash Dividend paid--
Total Distributable profit or (loss) as on Ashoj end20832,752,845,062(570,192,954)
Annualized Distributable Profit/Loss per share18.73(15.52)

Disclosure as per Securities Registration and Issuance Regulation, 2073

(Related to sub-Rule (1) of Rule 26)

Quarterly Detail as of Ashoj end 2083 (October 17, 2026)

1. Financial Statements

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

Published along with this report.

B. Related Party Disclosure

Nepal Government holds 51% shares and has representation on the board of directors of the bank and hence it is considered to be a related party to the bank.

Directors, Chief Executive Officer and other Key Management Personnel (KMP) are also considered to be related parties to the bank. No transaction between the bank and KMP's was observed other than prescribed under the Employee Service Bylaw of the bank.

C. Major Financial Highlights
a. Earnings per Share (Annualized) NPR22.6545.37
b. Market Value per Share NPR304.100.67
c. Price Earnings Ratio (Times)13.42292.89

2. Management Analysis

• Net interest income has decreased in comparison to same period of previous year with reduction in spread rate.

• Net profit for the current financial year has increased with increment in fee and commission income, net trading income and reduced tax expenses.

• With increased profitability, retained earning has increased in comparison to same period of the previous year.

• The liquidity is sufficient to meet the lending opportunities. However, low credit demand in the economy has significant

Net interest income2,489,574,7982,489,574,7982,569,500,3882,569,500,388
Fees and Commission Income407,470,305407,470,305318,229,912318,229,912
Fees and Commission Expense56,372,84756,372,84776,735,49676,735,496
Net fee and commission income351,097,458351,097,458241,494,417241,494,417
Net interest, fee and commission income2,840,672,2562,840,672,2562,810,994,8052,810,994,805
Net trading income124,441,012124,441,01235,557,60635,557,606
Other operating income171,139,675171,139,675138,413,291138,413,291
Total operating income3,136,252,9433,136,252,9432,984,965,7022,984,965,702
Impairment charge/(reversal) for loans and other losses546,464,674546,464,674641,948,956641,948,956
Net operating income2,589,788,2692,589,788,2692,343,016,7462,343,016,746
Operating Expenses
Personnel Expense1,237,290,8961,237,290,8961,065,552,7391,065,552,739
Other Operating Expense277,600,552277,600,552277,920,762277,920,762
Depreciation and Amortization79,942,49079,942,49082,422,48682,422,486
Operating profit994,954,331994,954,331917,120,759917,120,759
Non operating Income2,066,4002,066,4001,0001,000
Non operating expense----
Profit before Income tax997,020,731997,020,731917,121,759917,121,759
Income tax Expenses
Current Tax227,878,774227,878,774380,422,389380,422,389
Deferred Tax(63,045,875)(63,045,875)(51,588,129)(51,588,129)
Profit/(loss) for the period832,187,832832,187,832588,287,499588,287,499
Condensed Statement of Comprehensive Income
Profit/(loss) for the period832,187,832832,187,832588,287,499588,287,499
Other Comprehensive Income(69,573,592)(69,573,592)(514,160,603)(514,160,603)
Total Comprehensive Income762,614,240762,614,24074,126,89674,126,896
Basic earning per share22.6516.01
Diluted earning per share22.6516.01
Profit attributable to:
Equity holders of the Bank762,614,240762,614,24074,126,89674,126,896
Non-controlling interests----
Total762,614,240762,614,24074,126,89674,126,896

Ratios as per NRB Directives

Tier 1 Capital to RWA 11.23% 10.10%

CET 1 Capital to RWA 11.23% 10.10%

Capital Fund to RWA 13.64% 13.02%

Return to Equity 7.80% 6.16%

Return to Asset 0.67% 0.59%

Non-Performing Loan (NPL) to total loan 4.61% 5.49%

Total Loan Loss provision to Total NPL 103.09% 98.03%

Cost of Funds 2.83% 3.46%

Credit to Deposit Ratio 61.63% 69.42%

Base Rate 4.37% 5.16%

Interest Rate Spread 3.38% 3.91%

Notes to Interim Financial Statement

1. Above Financial Statements are prepared in accordance with the Nepal Financial Reporting Standards (NFRS) including directives issued by Nepal Rastra Bank.

2. These figures may vary with the audited figures at the instance of external auditor and regulator.

3. Previous Quarter Ending Figures have been regrouped and rearranged wherever necessary which might vary from previous quarter published figures.

4. Loans and advances to customers include Loan to customers and Loan to Employees which have been measured at amortized cost.

5. The provision for Defined benefit obligation and leave are based on Management Assumption.

6. Personnel expenses include employee bonus provision and amortization of the deferred employee benefits of subsidized loans provided as per Employee Service Bylaw of the bank.

7. NFRS adjustments which are subject to regulatory adjustments as per NRB directives have been shown as regulatory adjustments.

8. Other Comprehensive income includes the fair value changes of Investment and actuarial gain /(losses) net of tax.

9. Recognition of interest income has been based upon NRB NFRS 9 ECL Related Guidelines, 2024 and Guidance Note on Interest Income Recognition, 2025. However, the bank while reporting interest income of Stage 1 & 2 loan and advance for the reporting period has applied coupon interest rate.

10. Following regulatory backstop as mentioned in Clause 16 of "NFRS 9- Expected Credit Loss Related Guidelines, 2024" bank has recognized impairment on credit exposures as the higher of total ECL calculated as per NFRS 9 and existing regulatory provisions as mentioned in NRB Unified Directives no 02.

11. The detailed interim report has been published in the bank's website www.nepalbank.com.np.

impact on overall banking industry.

• The bank aims to achieve the objectives of business growth and profitability through enhanced customer service, business diversification, digitization and deposit mobilization.

• The bank is promoting financial inclusion through conducting various financial literacy programs, awareness videos.

• The bank is constantly adopting digital channels and IT infrastructure to allow automated transactions.

• The bank has robust risk management and AML/CFT policy in implementation as per international norms.

3. Detail relating to legal action

Except in the regular course of business, there are no lawsuits of material nature filed by or filed against the bank. No notice and information have been received by the bank to date regarding any cases filed for and against promoters/directors/on account of violation of prevailing laws or commission of criminal offenses or financial crime.

4. Analysis of share transactions and progress of the bank

a. Management view on share transactions of the bank in the securities market –

Share transaction of the bank takes place in the secondary market of the Nepal Stock Exchange through open share market operation. Management view on this is neutral. Transaction volume has increased in comparison to immediately preceding quarter.

b. Maximum, minimum, and last share price of the bank, including total number of shares traded and days of transaction during the quarter.

Maximum Price: NPR 311.90 Minimum Price: NPR 253.30 Last Price: NPR 304.10

Transaction volume: 79,85,842 shares Days of transaction: 61

5. Problems and Challenges

Internal

• Non-performing loans and its management.

• Retention of qualified and skilled human resources.

• Risk Management of increasing digitization and digital products.

External

• Concern on world economic growth and supply chain disruption amidst Middle East unrest.

• Decline in growth of construction and productive sector.

• High liquidity in banking sector.

• Slow credit growth due to economic slowdown.

• Stiff competition among bank and financial institutions.

• Impacts of climate change and natural disaster on bank assets.

• Rising inflation across the globe.

Strategy

• Focus on controlled business growth and profit management.

• Digitize the banking services to increase operational efficiency.

• Explore new sectors to increase non-interest income.

• Expedite recovery of non-performing loans.

• Focus on assets quality management.

• Ensure effective customer service with simplified processes.

• Focus on risk management and internal control.

6. Corporate Governance

The Board of the bank is responsible and accountable to the shareholders for ensuring good governance in the bank.

The Risk Management Committee, a committee of the Board, is entrusted to review the overall risks of the bank and recommend the Board for required policy prescription. The meeting of the committee is held at least once in every three months.

The Audit Committee, a committee of the Board, reviews bank's financial position, internal control effectiveness, remarks of internal/external audit/NRB inspection/supervision and gives necessary direction to management and suggestion to the Board.

The Employee Service Facility Committee, a committee of the Board, reviews the facilities and services of the staffs of bank and gives feedback to the Board.

The Anti-Money Laundering (AML) Committee, a committee of the Board, monitors and reviews the AML/CFT and CPF activities of the Bank.

CEO-Level Executive Credit Committee, comprising senior management and head of various business functions of the bank, reviews and monitors the credit portfolio of the bank. The committee also recommends the credit-related proposals to the competent authority.

The Assets and Liability Management Committee (ALCO) is responsible for the prudent risk management. It reviews interest rate risk, liquidity risk, and market risk of the bank regularly.

The Governance Division is responsible for monitoring the governance in the bank and report to the Board and concerned regulatory bodies.

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

I, as at the date, hereby individually accept 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.

Nepal Bank Limited

Dharmapath, Kathmandu

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