Nepal Investment Bank Ltd. (NIB) (Last update 10/23/2017)

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1 Nepal Investment Bank Ltd. (NIB) (Last update 10/23/2017) Introduction Nepal Investment Bank was established in 1986 AD with a vision to become the most preferred provider of Financial Services in Nepal. Its head office is located at Durbarmarg, Kathmandu and has a network of 61 branches, 3 extension counters and 98 ATMs located across the country. It has won The Banker s Bank of the Year Award in 2003, 2005, 2006, 2008 and Figures Basic Information Category A class No of Branches 61* Total No of staff 1187* *As of July 15, 2017 Board of Directors Postion Chairman Name Prithvi Bahadur Pande Prajanya Rajbhandari Surya Prakash Lal Shrestha Binod Kumar Guragain Kabi Kumar Tibrewala Bhuwaneshwor Prasad Shah Niranjan Lal Shrestha Mohan Madan Budhathoki Management Position Chief Executive Officer Name Jyoti Prakash Pandey

2 Nepal Investment Bank Ltd. Stock Summary Market Price Weeks High weeks Low Day Average EPS (Q4 73/74) P/E Ratio* Market Capitalization 68,009,188,480 Latest Dividend: Cash 25% Bonus 15% *Based on current Market price and EPS (Q4 73/74)

3 Technical Analysis Notes: There was price adjustment for 15% bonus dividend on Oct 4, Before the price adjustment; 9 days (blue), 30 days (green) and 52(yellow) days exponential moving averages were in sideways movement. After the price adjustment, price is lying below 9 days and 30 days exponential moving average but above 50 days exponential moving average. Strong support seen at around the 608 price level. Relative strength indicator recently moved into the neutral zone from the oversold zone. Golden cross is formed between MACD and Signal Line; which generally is regarded as a bullish signal.

4 NIB s Financial Ratios of Q4 73/74 Key Stats Remarks Capital Funds to RWA 14.47% Non Performing Loan (NPL) 0.83% to Total Loan Total Loan Loss Provision to % Total NPL Cost of Funds 5.84% CD ratio 77.63% Base Rate 8.36% EPS NWPS

5 NIB s Q4 73/74 Financial Report Analysis Balance Sheet (in 000) Q4 73/74 Q4 72/73 Growth Total Capital and Liabilities (1.1 to 1.7) 152,857, ,331, % Paid Up Capital 9,240,379 7,255, % Ordinary Share Call In Advance Irredeemable Non Cummulative Preference Reserve and Surplus 11,780,179 10,555, % Debenture & Bond 1,550,000 1,550, % Borrowings 241, , % Deposits 125,669, ,626, % a) Domestic Currency 114,923,286 95,195, % b) Foreign Currency 10,746,069 13,431, % Purposed Dividend Income Tax Liability Other Liabilities 4,376,179 3,092, % Total Assets (2.1 to 2.7) 152,857, ,331, % Cash and Bank Balance 17,897,590 13,025, % Money at Call and Short Notice 40, , % Investments 25,615,645 29,226, % Loan and Advances 106,683,877 87,009, % a. Real Estate Loan 5,756,185 5,334, % (i) Residential Real Estate 448, , % (ii) Business Complex & Residential Apart. Construction 1,656,801 2,465, % Loan (iii) Income Generating Commercial Commercial Complexes 802, , % Loan (iv) Other Real Estate Loan 2,848,865 2,160, % b. Personal Home Loan of Rs 100 lacs or less 2,118,552 1,273, % c.margin Type Loan 1,682, , % d.term Loan 28,855,445 21,373, % e. Overdraft Loan / TR Loan / WC Loan 55,933,412 50,832, % f. Others 12,337,377 7,591, % Fixed Assets 1,274,897 1,050, % Non Banking Assets (net of provision) Non Banking Assets (gross) Provision for Non Banking Assets Other Assets 1,345, , %

6 Income Statement (in '000) Q4 73/74 Q4 72/73 Growth Interest Income 9,248,699 6,776, % Interest Expenses 4,464,552 2,855, % Net Interest Income ( ) 4,784,147 3,921, % Fees,Commission & Discount 814, , % Other Operating Income 385, , % Foreign Exchange Gain & Loss 621, , % Total Operating Income (A ) 6,605,593 5,363, % Staff Expenses 665, , % Other operating Expenses 699, , % Operating Profit before Provisions (B ) 5,240,069 4,136, % Provision for Possible Losses 438, , % Operating Profit (C-3.8) 4,801,971 3,699, % Non Operating Income / Expenses (Net) 79,879 19, % Writeback of Provision for Possible Losses 96, , % Profit from Regular Activities (D ) 4,977,970 4,077, % Extraordinary Income / Expenses (Net) 20, % Profit before Bonus and Taxes (E+3.11) 4,998,243 4,078, % Provision for Staff Bonus 454, , % Provision for Taxes 1,383,789 1,156, % Current Year Prior Period Deferred Tax Income Net Profit/Loss (F ) 3,160,068 2,550, % Notes from quarterly report Paid-up capital grew by 27.4% Reserve & Surplus grew by 11.6% Deposits grew by 15.7% while loans and advances grew by 22.6% Margin type loan grew by 178.8% and loans under others grew by 62.5% Net interest income grew by 22%, operating profit grew by 29.8% and net profit grew by 23.9%

7 Breakdown of Nepal Investment Bank Ltd. s Loans 12% Loan & Advances 5% 2% 2% 27% Real Estate Loan Personal Home Loan of Rs 100 lacs or less Margin Type Loan Term Loan 52% Overdraft Loan / TR Loan / WC Loan Others The following is the breakdown of Nepal Investment Bank Ltd s loans: Particulars Amount (in 000) % Loan and Advances 106,683, % Real Estate Loan 5,756, % Residential Real Estate 448, % Business Complex & Residential Apart. Construction Loan 1,656, % Income Generating Commercial Commercial Complexes Loan 802, % Other Real Estate Loan 2,848, % Personal Home Loan of Rs 100 lacs or less 2,118, % Margin Type Loan 1,682, % Term Loan 28,855, % Overdraft Loan / TR Loan / WC Loan 55,933, % Others 12,337, % Notes: Highest portion (52.4%) is in Overdraft/ TR/ WC loans

8 Previous 5 years data (Q4) Balance Sheet (in '000) Q4 73/74 Q4 72/73 Q4 71/72 Q4 70/71 Q4 69/70 Paid Up Capital 9,240,379 7,255,510 4,771,204 4,146,708 3,768,008 Reserves and Surplus 11,780,179 10,555,899 5,121,009 4,826,636 4,275,306 Deposits 125,669, ,626,642 90,631,487 73,831,376 62,428,846 Loan and Advances 106,683,877 87,009,792 67,690,198 53,458,469 47,700,627 Income Statement (in '000) Q4 73/74 Q4 72/73 Q4 71/72 Q4 70/71 Q4 69/70 Interest Income 9,248,699 6,776,755 5,786,160 5,816,279 5,886,114 Interest Expense 4,464,552 2,855,650 2,807,361 2,820,475 2,774,788 Net Interest Income 4,784,147 3,921,105 2,978,799 2,995,804 3,111,326 Operating Profit 4,801,971 3,699,689 2,547,755 2,738,380 2,266,529 Net Profit/Loss 3,160,068 2,550,883 1,964,243 1,950,799 1,991,522

9 Growth Chart (Balance sheet items) 140,000,000 Balance Sheet 120,000, ,000,000 80,000,000 60,000,000 40,000,000 20,000,000 Paid Up Capital Reserves and Surplus Deposits Loan and Advances 0 Q4 73/74 Q4 72/73 Q4 71/72 Q4 70/71 Q4 69/70 Growth Chart (Income statement items) 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Income Statement Q4 73/74 Q4 72/73 Q4 71/72 Q4 70/71 Q4 69/70 Interest Income Interest Expense Net Interest Income Operating Profit Net Profit/Loss

10 Summary Nepal Investment Bank was established in 1986 AD; its head office is located at Durbarmarg, Kathmandu and has a network of 61 branches, 3 extension counters and 98 ATMs located across the country. There was price adjustment for 15% bonus dividend on Oct 4, After the price adjustment, price is lying below 9 days and 30 days exponential moving average but above 50 days exponential moving average. There is strong support seen at around the 608 price level. Relative strength indicator recently moved into the neutral zone from the oversold zone. Golden cross is formed between MACD and Signal Line; which generally is regarded as a bullish signal. Paid-up capital grew by 27.4% while reserve & surplus grew by 11.6%. Deposits grew by 15.7% while loans and advances grew by 22.6%. Net interest income grew by 22%, operating profit grew by 29.8% and net profit grew by 23.9%