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 2010. 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
Nepal Investment Bank Ltd. Stock Summary Market Price 647 52 Weeks High 867 52 weeks Low 611 180 Day Average 736.99 EPS (Q4 73/74) 34.20 P/E Ratio* 18.92 Market Capitalization 68,009,188,480 Latest Dividend: Cash 25% Bonus 15% *Based on current Market price and EPS (Q4 73/74)
Technical Analysis Notes: There was price adjustment for 15% bonus dividend on Oct 4, 2017. 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.
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 223.71% Total NPL Cost of Funds 5.84% CD ratio 77.63% Base Rate 8.36% EPS 34.20 NWPS 227.49
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) 152,857,416 131,331,447 16.4% Paid Up Capital 9,240,379 7,255,510 27.4% Ordinary Share Call In Advance Irredeemable Non Cummulative Preference Reserve and Surplus 11,780,179 10,555,899 11.6% Debenture & Bond 1,550,000 1,550,000 0.0% Borrowings 241,324 250,480-3.7% Deposits 125,669,355 108,626,642 15.7% a) Domestic Currency 114,923,286 95,195,356 20.7% b) Foreign Currency 10,746,069 13,431,286-20.0% Purposed Dividend Income Tax Liability Other Liabilities 4,376,179 3,092,916 41.5% Total Assets (2.1 to 2.7) 152,857,415 131,331,447 16.4% Cash and Bank Balance 17,897,590 13,025,832 37.4% Money at Call and Short Notice 40,000 149,380-73.2% Investments 25,615,645 29,226,762-12.4% Loan and Advances 106,683,877 87,009,792 22.6% a. Real Estate Loan 5,756,185 5,334,596 7.9% (i) Residential Real Estate 448,059 531,382-15.7% (ii) Business Complex & Residential Apart. Construction 1,656,801 2,465,171-32.8% Loan (iii) Income Generating Commercial Commercial Complexes 802,460 177,223 352.8% Loan (iv) Other Real Estate Loan 2,848,865 2,160,820 31.8% b. Personal Home Loan of Rs 100 lacs or less 2,118,552 1,273,593 66.3% c.margin Type Loan 1,682,906 603,618 178.8% d.term Loan 28,855,445 21,373,407 35.0% e. Overdraft Loan / TR Loan / WC Loan 55,933,412 50,832,823 10.0% f. Others 12,337,377 7,591,755 62.5% Fixed Assets 1,274,897 1,050,446 21.4% Non Banking Assets (net of provision) Non Banking Assets (gross) Provision for Non Banking Assets Other Assets 1,345,406 869,235 54.8%
Income Statement (in '000) Q4 73/74 Q4 72/73 Growth Interest Income 9,248,699 6,776,755 36.5% Interest Expenses 4,464,552 2,855,650 56.3% Net Interest Income (3.1-3.2) 4,784,147 3,921,105 22.0% Fees,Commission & Discount 814,827 604,400 34.8% Other Operating Income 385,187 305,046 26.3% Foreign Exchange Gain & Loss 621,432 533,265 16.5% Total Operating Income (A+3.3+3.4+3.5) 6,605,593 5,363,816 23.2% Staff Expenses 665,839 569,749 16.9% Other operating Expenses 699,685 657,913 6.3% Operating Profit before Provisions (B-3.6-3.7) 5,240,069 4,136,154 26.7% Provision for Possible Losses 438,098 436,465 0.4% Operating Profit (C-3.8) 4,801,971 3,699,689 29.8% Non Operating Income / Expenses (Net) 79,879 19,433 311.0% Writeback of Provision for Possible Losses 96,120 358,690-73.2% Profit from Regular Activities (D+3.9+3.10) 4,977,970 4,077,812 22.1% Extraordinary Income / Expenses (Net) 20,273 379 5249.1% Profit before Bonus and Taxes (E+3.11) 4,998,243 4,078,191 22.6% Provision for Staff Bonus 454,386 370,745 22.6% Provision for Taxes 1,383,789 1,156,563 19.6% Current Year Prior Period Deferred Tax Income Net Profit/Loss (F-3.12-3.13) 3,160,068 2,550,883 23.9% 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%
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 106,683,877 100% Real Estate Loan 5,756,185 5.4% Residential Real Estate 448,059 0.4% Business Complex & Residential Apart. Construction Loan 1,656,801 1.6% Income Generating Commercial Commercial Complexes Loan 802,460 0.8% Other Real Estate Loan 2,848,865 2.7% Personal Home Loan of Rs 100 lacs or less 2,118,552 2.0% Margin Type Loan 1,682,906 1.6% Term Loan 28,855,445 27.0% Overdraft Loan / TR Loan / WC Loan 55,933,412 52.4% Others 12,337,377 11.6% Notes: Highest portion (52.4%) is in Overdraft/ TR/ WC loans
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 125,669,355 108,626,642 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
Growth Chart (Balance sheet items) 140,000,000 Balance Sheet 120,000,000 100,000,000 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
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, 2017. 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%