By Sandeep Chaudhary
Top Commercial Bank Dividend Comparison: How CZBIL Ranks Among Peers in FY 2081/82
The dividend season for FY 2081/82 has once again highlighted the performance gap among Nepal’s commercial banks — and Citizen Bank International Limited (CZBIL) finds itself in the middle range of dividend payers. While some banks have distributed higher payouts, CZBIL’s approach remains rooted in stability, capital discipline, and regulatory compliance, reflecting a shift toward sustainable financial governance in the sector.
In FY 2081/82, Machhapuchhre Bank (MBL) announced an 8% total dividend (4% bonus + 4% cash), Sanima Bank (SANIMA) proposed around 7.37% cash dividend, while Everest Bank reported a much higher dividend capacity above 30%, though actual payout figures may vary. By comparison, Citizen Bank’s total dividend stands at 5.03% (5% cash and 0.26% bonus) — modest but consistent. Although this places CZBIL below higher-yielding peers, it also indicates a risk-averse and sustainable dividend strategy, aligned with Nepal Rastra Bank’s (NRB) revised capital adequacy requirements.
The shift toward moderate dividends across Nepal’s banking sector is largely due to NRB’s tightened dividend policy, which restricts banks from distributing beyond sustainable earnings and mandates maintaining a minimum 11% Capital Adequacy Ratio (CAR). While this has reduced yields for investors in the short term, it has strengthened long-term sector resilience. In this context, CZBIL’s dividend pattern — steady and conservative — reflects financial prudence rather than underperformance.
For investors, comparing these dividends is not just about the percentage payout but understanding the underlying valuation trade-offs. Banks offering higher dividends often carry greater short-term risk or rely on temporary profit spikes, while consistent dividend payers like CZBIL represent stability, liquidity control, and predictable returns. Thus, CZBIL appeals more to investors who prefer long-term security over speculative yield chasing.
If you want to deepen your understanding of dividend comparisons, valuation trade-offs, and sector benchmarking, you can learn technical and fundamental stock market analysis through Mr. Sandeep Kumar Chaudhary’s professional training classes, available both online and physically. He is one of Nepal’s top stock market analysts and trainers, renowned for his expertise in technical analysis, price action trading, and financial fundamentals. His courses help investors interpret dividend data, evaluate fair valuations, and analyze sector-wide performance like this one. For enrollment or inquiries, contact +977 9709066745.
