A Report On

FINANCIAL PERFORMANCE ANALYSIS

OF
NABIL BANK
(MBA Finance)

Submitted by Submitted To
Khageshwar Bhatta Nabaraj Adhikari
Kriti Kumari Sah (Faculty of Management)
Laura Bhandari
Meera Thapa
Nitu Yadav

16 May, 2018
 ACKNOWLEDGEMENT

This study attempts to examine the financial performance of Nepal Arab Bank Limited with help
of different ratio based on available data an information .It also deal with problem identification
besides this field study to acquire the reality of the banking operation of Nabil .For easier study
the data has been present in the tables, graphs and has been interpreted using various statistical
methods.
It is very difficult to draw up a list of persons to be thanked because several people have helped
in preparation of this report in diverse ways. Knowledge itself is cumulative so it is difficult to
acknowledge intellectual ideas. It is impossible to acknowledge to all those who have contributed
to this study.
We are profoundly indebted to Uniglobe College for giving us an opportunity to use the
theoretical knowledge in the practical field. We would like to thank Mr. Nabraj Adhikari, our
Financial Reporting, and Analysis teacher for guiding and helping in preparation of this report
We would like to extend my gratitude to Owners of Genesis, to the staff of Nabil bank for
providing related data information. Finally, we pay our sincere obligation and gratitude to
Uniglobe College, respected teachers and colleagues who provided a god deal of knowledge and
ideas for the existence of this output.

Thank You.
 TABLE OF CONTENT

Acknowledgment
Abbreviation
List of table
List of figures

CHAPTERS 1
Introduction
1.1 Background
1.2 Introduction of Nabil bank
1.3 Objectives
1.4 Limitation

CHAPTERS 2
Data collection and Analyze
2.1 Sources of Data

2.2 Method of Data Analysis

2.2.1 Financial Tools

CHAPTERS 3
Conclusion and Recommendation
3.1 Conclusion
3.2 Recommendation

Bibliography
 LIST OF TABLE

Table 2.1 Current ratio

Table 2.2 Cash Flow form Operation to Capital Ratio
Table 2.3 Debt/Equity Ratio
Table 2.4 Debt-to-Total Assets Ratio
Table 2.5 Debt Service Coverage Ratio
Table 2.6 Gross Profit Ratio
Table 2.7 Returns on Assets Ratio
Table 2.8 Returns on Equity Ratio
Table 2.9 Times interest earned ratio
Table 2.10 Loans & Advances/Total deposits Ratio
Table 2.11 Total Expenses /Total Interest Ratio
Table 2.12 Interest Income/Loan & Advance
Table 2.13 Net Profit/Loan & Advance Ratio
Table 2.14 Net Profit/Total Assets Ratio
Table 2.15 Earnings per Share
Table 2.16 Dividend per Share
Table 2.17 Price Earnings Ratio
Table 2.18 Book Value per Share
Table 2.19 Earnings Yield Ratio
Table 2.20 Dividend Yield Ratio
 LIST OF FIGURE

Figure 2. 1 Current ratio

Figure 2.2 Cash Flow form Operation to Capital Ratio
Figure 2.3 Debt/Equity Ratio
Figure 2.4 Debt-to-Total Assets Ratio
Figure 2.5 Debt Service Coverage Ratio
Figure 2.6 Gross Profit Ratio
Figure 2.7 Returns on Assets Ratio
Figure 2.8 Returns on Equity Ratio
Figure 2.9 Times interest earned ratio
Figure 2.10 Loans & Advances/Total deposits Ratio
Figure 2.11 Total Expenses /Total Interest Ratio
Figure 2.12 Interest Income/Loan & Advance
Figure 2.13 Net Profit/Loan & Advance Ratio
Figure 2.14 Net Profit/Total Assets Ratio
Figure 2.15 Earnings per Share
Figure 2.16 Dividend per Share
Figure 2.17 Price Earnings Ratio
Figure 2.18 Book Value per Share
Figure 2.19 Earnings Yield Ratio
Figure 2.20 Dividend Yield Ratio
 ABBREVIATION

F/Y: Fiscal Year

Rs. : Rupees

No: Number

NRB: Nepal Rastra Bank

Ltd: Limited

EPS: Earning per share

MPS: Market price per share

P/E: Price Earning

Fig: Figure

Govt.: Government

ROA: Return on Assets

ROE: Return on Equity

 ANNEXURE

Annex-I Current Ratio

Annex-II Earnings per Share
Annex-III Dividend per Share
Annex-IV Total Interest Expenses/ Total Interest Income
Annex-IV Gross Profit Ratio
Annex-VI Net Profit/Loan &Advances
Annex-VII DEBT Equity
Annex-VIII DEBT Assets
Annex-IX Loans & Advances/Total Deposit
Annex-X Return on Assets (ROA)
Annex-XI Return on Equity
Annex-XII Book Value per Share
Annex-XIII Net Profit/Total Assets
Annex-XIV P/E Ratio
Annex-XV Interest Income/Loans & Advances
Annex-XVI Time Interest Earned Interest
Annex-XVII Debt Service Coverage Ratio
Annex-XVIII Cash flow From Operation to Capital
Annex-XIX Earning Yield
Annex-XX Dividend Yield
 CHAPTER 1
INTRODUCTION

1.1 Background

The history of banking began with the first prototype banks where the merchants of the world,
who made grain loans to farmers and traders who carried goods between cities. This was around
2000 BC in Assyria and Sumeria. Later, in ancient Greece and during the Roman Empire,
lenders based in temples made loans, while accepting deposits and performing the change of
money. Archaeology from this period in ancient China and India also shows evidence of money
lending activity.

Many histories position the crucial historical development of a banking system to medieval and
Renaissance Italy and particularly the affluent cities of Florence, Venice and Genoa. The Bardi
and Peruzzi Families dominated banking in 14th century Florence, establishing branches in many
other parts of Europe. The most famous Italian bank was the Medici bank, established by
Giovanni Medici in 1397. The oldest bank still in existence is Banca Monte dei Paschi di Siena,
headquartered in Siena, Italy, which has been operating continuously since 1472.

The development of banking spread from northern Italy throughout the Holy Roman Empire, and
in the 15th and 16th century to northern Europe. This was followed by a number of important
innovations that took place in Amsterdam during the Dutch Republic in the 17th century, and in
London since the 18th century. During the 20th century, developments in telecommunications
and computing caused major changes to banks' operations and let banks dramatically increase in
size and geographic spread. The financial crisis of 2007–2008 caused many bank failures,
including some of the world's largest banks, and provoked much debate about bank regulation
There are various opinions and definition regarding on bank. Among them few of this is below:
According to World Bank - "Banks are financial institutions that accept funds in the form of
deposits repayable on demand or short notice."
According to Nepal Rastra Bank Act 2002 - "Bank is a financial institution which provides
financial services that may be in the form of accepting deposits, advancing loan, providing
necessary technical advices, dealing over foreign currencies, remitting funds etc."
According to Commercial Bank Act 2031 - "Bank is an organization established for the purpose
of exchange money and deposit lending money and participation in transaction.

Therefore, summarizing the above is banks are those financial institutions that offer the widest
range of financial services especially credit, savings and payment services. And the most
important thing is bank perform the widest range of financial functions of any business firm in
the economy
1.2 Introduction of Nabil bank
Nabil Bank Limited is a commercial bank in Nepal. Founded in 1984, the bank has branches all
across the nation with its head office in Kathmandu. Nabil, the first foreign joint venture bank of
Nepal, started operations in July 7, 1984. Nabil was incorporated with the objective of extending
international standard modern banking services to various sectors of the society. Nabil provides a
range of commercial banking services through its 51 points of representation across the country
and over 170 correspondent banks across the globe. It was earlier known as Nepal Arab Bank
Ltd. It has its head office located at Nabil Center, Durbar Marg, which is also a premium location
of the capital. It has the largest staff among private commercial banks of Nepal.

Nabil Bank Limited is the nation’s first private sector bank, commencing its business since July
1984. Nabil was incorporated with the objective of extending international standard modern
banking services to various sectors of the society. In addition to this, Nabil has presence through
over 1500 Nabil Remit agents throughout the nation.

Nabil, as a pioneer in introducing many innovative products and marketing concepts in the
domestic banking sector, represents a milestone in the banking history of Nepal as it started an
era of modern banking with customer satisfaction measured as a focal objective while doing
business. Highly qualified and experienced management team manages operations of the bank
including day-to-day operations and risk management. Bank is fully equipped with modern
technology which includes international standard banking software that supports the E-channels
and E-transactions.

Nabil is moving forward with a Mission to be “1st Choice Provider of Complete Financial
Solutions” for all its stakeholders; Customers, Shareholders, Regulators, Communities and Staff.
Nabil is determined in delivering excellence to its stakeholders in an array of avenues, not just
one parameter like profitability or market share. It is reflected in its Brand Promise “Together
Ahead.” The entire Nabil Team embraces a set of Values “C.R.I.S.P,” representing the fact that
Nabil consistently strives to be Customer Focused, Result Oriented, Innovative, Synergistic, and
Professional.

1.3 Objectives

The general objective of this report is to find out the financial performance of this bank with
using different ratios other objectives of these studies are as follows:

 To know how financial statement and annual report are prepare in bank and financial
insinuation
 To analyze and evaluate the financial strength and weakness of Nabil bank
  To determine the financial performance through the use of appropriate financial and
statistical tools
 To suggest and recommend some measure financial performance evaluation and finding
for the improvement of financial performance of Nabil Bank Ltd I Future

1.4 Limitation
The following are the limitation of the present study:

 This study is only base on financial statement of Nabil Bank.

 This study is based on secondary data.
 This study has analyzed and evaluated of data to the latest five years period i.e. since
2011/012 to 2015/16 (i.e. 5 years historical data).
 In this study, only selected financial ratios are used.
 The qualitative factors like as growth and expansion policies, quality and general
economic conditions have not studies.
 Being student time and resource constant.
 CHAPTER 2
DATA COLLECTION AND ANALYSIS

The rationale behind the study is to evaluate and assess the financial position or performance of
the Nabil banks. Thus, this chapter includes those methods and techniques used for finding out a
fore said purpose.

2.1 Sources of Data

Although present study is on secondary data. However, necessary suggestion are also taken from
various experts both inside the bank whenever required the necessary data is obtained from the
head office of Nabil banks such as, published balance sheet, profit and loss account and other
related statement of accounts as well as the annual reports. Likewise, other related arid necessary
information are also obtained from the publication of security exchange center, Nepal Rasta
Bank and other publications used for the purpose are book & booklets magazine journals,
newspaper school of thought etc.

2.2 Method of Data Analysis

2.2.1 Financial Tools

Financial tools are those, which are used for the analysis and interpretation of financial data.
These tools can be used to get the precise knowledge of a business, winch in turn, are fruitful in
exploring the strengths and weaknesses of the financial policies and strategies. For the sake of
analysis following various financial tools have been use in order to meet the purpose of the
study.

Ratio Analysis

Ratio analysis helps to summarize the large quantities of financial data and to make quantitative
judgments about the firm's financial performance. Ratio is the expression of one figure in terms
of another. It is the expression of relationship between the mutually independent figures, in
financial analysis; ratio is use to as an index of yardstick for evaluating the financial position and
performance of firm. Ratio analysis is very much powerful & widely used tool of financial
analysis. It is define as the systematic use of ratio to interpret the financial statements so that the
strength and weakness of a firm as well as its historical performance and current financial
condition can be determined. It helps the analysis to make qualitative judgment in about the
financial position and performance of the firm. Therefore, it is helps to establish relationship
among various ratios and interpret there on specially, based on comparison between two or more
firms, or inters firm comparison and comparison between present and past ratios for the same
firm give enormous and fruitful results to examine the financial performance. The obsolete
accounting figure reported in the financial statement does not provide a meaningful
understanding of the performance and financial position of the firm. An accounting figure
conveys meaning when it is relate to some other relevant information. Therefore, the ratio is the
relationship between two accounting figures expressed mathematically. It helps to summarize
large quantitative relationship helps to form a quality judgment. However, " A single ratio itself
does not is indicate favorable or unfavorable conditions. It should be compared with some
standard. A ratio is simply a number expressed in terms of another number and it expresses the
quantitative relation between any two variables. Ratio can be calculated between any two items
of financial statements. It means there may be as many ratios as there are the numbers of items.
However, under the ratio analysis technique, it is not practical to work out all the ratios. Hence,
only the required ratios have been worked out. There are numerous ratios to analyze and interpret
the financial form once of the enterprise or firm. However, for our purpose, only important and
relevant ratios are used to check the financial position of financial in situation in Nepal, which
are as below:

Liquidity Ratios
Liquidity ratios are used to judge the firm's ability to moot short-term obligation. These ratios
give insights into the present cash solvency of the firms and its ability to remain solvent in the
event of adversities. It is the comparison between short-term obligation and the short –term
resources available to meet these obligations. These ratios are calculated to find the ability of
banks to meet their short-term obligation, which are likely to mature in the short period.
 Current Ratio
 Cash Flow form Operation to Capital

a) Current Ratio:
The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-
term obligations. To gauge this ability, the current ratio considers the current total assets of a
company (both liquid and illiquid) relative to that company’s current total liabilities. The current
ratio is called “current” because, unlike some other liquidity ratios, it incorporates all
current assets and liabilities. The current ratio is also known as the working capital ratio. The
formula for calculating a company’s current ratio is:

Current Ratio = Current Assets / Current Liabilities

 Table 2. 1 Current ratio

Year 2015/2016 2014/2015 2013/2014 2012/2013 2011/2012

Ratio (%) 0.1215 0.1537 0.1 0.098 0.1244

Current Ratio(%)
0.18
0.16
0.14
0.12
Percentage

0.1
0.08
0.06
0.04
0.02
0
2015/2016 2014/2015 2013/2014 2012/2013 2011/2012
Year

Figure 2. 1 Current ratio

In the above figure, current ratio of Nabil of different year 0.1215, 0.1537, 0.1, 0.098, and 0.1244
in 2015/16, 2014/15, 2013/14, 2012/13 and 2011/12 as respectively .As per normal standard
current ratio should be 2:1 is better but there is less than standard. It shows the ability of Nabil is
poor to pay short-term and long term obligation. The trend of current ratio is more fluctuate. To
compare five year in 2014/15 current ratio is higher than other rest year.

b) Cash Flow form Operation to Capital:

Cash flow to capital expenditures is the ratio of a company's cash from operations to its capital
expenditures for acquiring or upgrading assets, such as buildings or equipment, required to
improve or maintain business operations.

Cash flow to capital expenditures is a ratio that helps investors and analysts understand a
company's ability to buy more assets, and do so without having to issue debt or equity. For that
reason, a rising cash flow to capital expenditures ratio might indicate that the company is in a
position to grow -- and growth is generally what increases share price and shareholder wealth.
Thus, analysts are keenly interested in the cash flow to capital expenditures ratio. It is calculated
by following formula.
Cash Flow form Operation to Capital = Cash flow From Operating Activities –Dividend
/Net Acquisition

Table 2.2 Cash Flow form Operation to Capital Ratio

Year 2015/16 2014/15 2013/14 2012/13 2011/12

Ratio (%) 25.08 67.49 37.98 8.79 33.65

Cash Flow form Operation to Capital

Ratio (%)
80
70
60
Perecentage

50
40
30
20
10
0
2015/16 2014/15 2013/14 2012/13 2011/12
Year

Figure 2.2 Cash Flow form Operation to Capital Ratio

In the above figure cash flow from operation ratio of Nabil of different five year 25.08, 67.49,
37.98, 8.79and 33.65 in 2015/16, 2014/15, 2013/14, 2012/13 and 2011/12 as respectively. It
indicates the amount of money bank bring from ongoing, regular basis. The ratio is very low in
2012/13 and 2015/16 where an expense of bank is high rather than other year, which is not good
for the bank.

Leverage Ratio
Leverage or capital structure ratios are used to judge the long-term financial position of the firm. It
evaluates the financial risk of long-term creditors greater the proportion of the owner's capital structure,
lesser will be the financial risk borne by supplier of credit funds. Debt is more risky from the firm's point
of view. The firm has legal obligation to pay interest to deft holders irrespective of the profit made or
losses incurred by the firm.

 Debt/Equity Ratio
 Debt-to-Total Assets Ratio
 Debt service coverage ratio
a) Debt/Equity Ratio:
Debt/Equity (D/E) Ratio, calculated by dividing a company’s total liabilities by its stockholders'
equity, is a debt ratio used to measure a company's financial leverage. The D/E ratio indicates
how much debt a company is using to finance its assets relative to the value of shareholders’
equity. The result can be expressed either as a number or as a percentage. The debt/equity ratio is
also referred to as a risk or ratio. The formula for calculating D/E ratios is:

Debt/Equity Ratio = Total Liabilities / Shareholders' Equity

Table 2.3 Debt/Equity Ratio

Year 2015/2016 2014/2015 2013/2014 2012/2013 2011/2012

Ratio (%) 9.98 10.85 9.99 9.48 10.59

Debt/Equity Ratio (%)

11

10.5
Percentage

10

9.5

8.5
2015/2016 2014/2015 2013/2014 2012/2013 2011/2012
Year

Figure 2.3 Debt/Equity Ratio

The above figure debt equity ratio of Nabil of following five year 9.98, 10, 85, 9.99, 9.48and
10.59 in 2015/16, 2014/15, 2013/14, 2012/13 and 2011/12 as respectively. This ratio also has a
decreasing trend in the beginning, increasing at middle and decreasing trend at the end due to the
same reasons mentioned for the preceding ratio. The higher the ratio, the less protected creditors
are from business risk.

b) Debt-to-Total Assets Ratio:

Debt to total assets is a leverage ratio that defines the total amount of debt relative to assets. This metric
enables comparisons of leverage to be made across different companies. The higher the ratio, the higher
the degree of leverage and, consequently, financial risk. The total debt to total assets is a broad ratio that
includes long-term and short-term debt (borrowings maturing within one year), as well as all assets
tangible and intangible. It is calculated by following
Debt Assets= Total Debt/Total Assets
Table 2.4 Debt-to-Total Assets Ratio

Year 2015/2016 2014/2015 2013/2014 2012/2013 2011/2012

Ratio (%) 0.909 0.916 0.909 0.904 0.914

Debt-to-Total Assets Ratio (%)

0.918
0.916
0.914
0.912
Percentage

0.91
0.908
0.906
0.904
0.902
0.9
0.898
2015/2016 2014/2015 2013/2014 2012/2013 2011/2012
Year

Figure 2.4 Debt-to-Total Assets Ratio

In the above figure debt to total assets ratio of Nabil of following five years is 0.909, 0.916,
0.909, 0.904 and 0.91420 in 2015/16, 2014/15,2013/14, 2012/13 and 2011/12 as respectively. It
indicates that there is no fluctuate in the debt to total ratio because all five year is near around
o.90 to92.That, mean debt relative to assets not highly varies .Bank maintain to constant degree
of financial risk .

c) Debt service coverage ratio:

The debt service coverage ratio measures the ability of a revenue-producing property to pay
for the cost of all related mortgage payments. In essence, it compares cash flows to debt
service payments. A positive debt service ratio indicates that a property’s cash flows can
cover all offsetting loan payments, whereas a negative debt service coverage ratio indicates
that the owner must contribute additional funds to pay for the annual loan payments.
Debt Service Coverage Ratio= Cash Flow from Operating Activities (CFFOA) + Interest
Paid + Tax Paid /Net Acquisitions

Table 2.5 Debt Service Coverage Ratio

Year 2015/16 2014/15 2013/14 2012/13 2011/12

Ratio (%) 2.66 4.52 3.31 2.13 4.27

Debt Service Coverage

Ratio (%)
5
4.5
4
3.5
Percentage

3
2.5
2
1.5
1
0.5
0
2015/16 2014/15 2013/14 2012/13 2011/12
Year

Figure 2.5 Debt Service Coverage Ratio

In the above figure debt to total assets ratio of Nabil of following five years 2.66, 4.52, 3.31and
2.13 in 2015/16, 2014/15, 2014/13, 2012/13 and 2012/13 as respectively. It indicates that ability
to pay of revenue producing to paying of the cost .Nabil has positive debt service coverage ratio,
which cover offsetting loan payment .By comparing five year in 2014/15 has highest coverage
ratio rather than other.

Profitability Ratio
Profitability ratios are designed to highlight the end-result of the business activities, which in the
imperfect world of ours, is the sole criterion of cover all efficiency of business unit. A company
should earn profit to survive and grow over a long period. It is a fact that sufficient profit must be
earned to sustain the operations of the business, to able to obtain funds from investors for
expansion and growth; and to contribute towards the social overheads for the welfare of society.
The profitability ratios are calculated to measure the operating efficiency of the company. Which
are as follows:
  Gross profit ratio
 Return on Assets
 Return on Equity
 Times Interest Earned Ratio

a) Gross Profit:
Gross profit is the profit a company makes after deducting the costs associated with making and
selling its products, or the costs associated with providing its services. Gross profit will appear
on a company's income statement, and can be calculated with this formula:
Gross Profit= Gross Profit/Net Interest Income
Table 2.6 Gross Profit Ratio

Year 2015/2016 2014/2015 2013/2014 2012/2013 2011/2012

Ratio
70.57 56.15 62.9 98.54 43.09
(%)

Gross Profit Ratio (%)

120

100

80
Percentage

60

40

20

0
2015/2016 2014/2015 2013/2014 2012/2013 2011/2012
Year

Figure 2.6 Gross Profit Ratio

In the above figure Gross Profit ratio of Nabil of different five year 70.57, 56.15, 62.9, 98.54 and
43.09 in 2015/16, 2014/15, 2013/14, 2012/13 and 2011/12 as respectively. It indicates the
financial health of a company. The ratio is high during F/Y 2012/13 which starts declining up to
F/Y 2014/15 then during F/Y 2015/16 it shows increasing trend which is good for the company.
b) Return on Assets
Return on assets (ROA) is a financial ratio that shows the percentage of profit a company earns
in relation to its overall resources. It is commonly defined as net income divided by total assets.
Net income is derived from the income statement of the company and is the profit after taxes.

Return on Assets= Net Income/Total Assets

Table 2.7 Returns on Assets Ratio

Year 2015/2016 2014/2015 2013/2014 2012/2013 2011/2012

Ratio (%) 2.43 1.8 2.65 3.02 2.68

Return On Assets (ROA) Ratio (%)

3.5
3
2.5
Percentage

2
1.5
1
0.5
0
2015/2016 2014/2015 2013/2014 2012/2013 2011/2012
Year

Figure 2.7 Returns on Assets Ratio

In the above figure cash flow from operation ratio of Nabil of different five year 2.43, 1.80, 2.65,
3.02 and 2.68 in 2015/16, 2014/15, 2013/14, 2012/13 and 2011/12 as respectively. It measures
the profitability of a business in relation to its total assets. The ratio shows decreasing trend from
F/Y 2012/13 to F/Y 2014/15 which shows the lack of effective management of available assets.
However it shows increasing trend during F/Y 2015/16 which is good for the bank.

c) Return on Equity:
Return on Equity (ROE) is the amount of net income returned as a percentage
of shareholders equity. Return on equity measures a corporation's profitability by revealing how
much profit a company generates with the money shareholders have invested, measured by
following formula.

Return on Equity = Net Income/Shareholder's Equity

 Table 2.8: Return on Equity

Year 2015/2016 2014/2015 2013/2014 2012/2013 2011/2012

Ratio (%) 24.32 22.07 30.36 33.16 31.12

Return on Equity = Net Income/Shareholder's Equity

Return on Equity Ratio (%)

35
30
25
percentage

20
15
10
5
0
2015/16 2014/15 2013/14 2012/13 2011/12
Year

Figure 2.8 Returns on Equity Ratio

In the above figure cash flow from operation ratio of Nabil of different five year 0.2432, 0.2207,
0.3036, 0.3316 and 0.3112 in 2015/16, 2014/15, 2013/14, 2012/13 and 2011/12 as respectively.
It measures the ability of a firm to generate profits from its shareholders investments in
the company. The ratio shows increasing trend from F/Y 2011/12 to F/Y 2012/13 however it
decreases during F/Y 2013/14 to F/Y 2014/15 then it starts improving condition of the bank
during F/Y 2015/16.

d) Times Interest Earned Ratio:

The times interest earned ratio measures the ability of an organization to pay its debt obligations.
The ratio is commonly used by lenders to ascertain whether a prospective borrower can afford to
take on any additional debt. The ratio is calculated by comparing the earnings of a business that
are available for use in paying down the interest expense on debt, divided by the amount of
interest expense. It is calculated by following formula.

Times interest earned= Earnings before interest and taxes / Interest expense
 Table 2.9 Times interest earned ratio

Year 2015/16 2014/15 2013/14 2012/13 2011/12

Ratio (%) 3.19 2.33 2.70 2.45 1.23

Times interest earned ratio

(%)
3.5
3
2.5
Percentage

2
1.5
1
0.5
0
2015/16 2014/15 2013/14 2012/13 2011/12
Year

Figure 2.9 Times interest earned ratio

The above table and figure shows the TIE ratio of NABIL within the duration of 5 years from
2011/2012 to 2015/2016. The highest ratio was in the year 2015/2016 at 3.19. There seems
decreases the ratios for the previous years.

Turnover Ratio
Turnover ratios, also known as utilization ratios or activity ratios are employed to evaluate the efficiency
with which the firm manages and utilizes its assets. They measure how effectively the firm uses
investment and economic resources at its command. Investments are made in order to produce profitable
sales. Unlike other manufacturing concerns, the bank produces loans, advance, and other innovation. So it
sells the same High ratio depicts the managerial efficiency in utilizing the resources they show the sound
profitability position off the bank low ratio is the result of insufficient utilization of resources. However,
too high ratio is also not good enough as it may be due to the insufficient liquidity

 Loans & Advances/Total Deposits

 Total expenses /Total Interest
 Interest Income/Loan and Advance
 Net Profit/Loan & Advance
 Net Profit/Total Assets

a) Loans & Advances/Total Deposits:

A loan and advance is a financial facility provided by the banks and financial institutions to help
their customers in financial need. Finance is lifeblood for any type of business or a particular
need. So when one is not able to get a full amount of money by his own. He can use this type of
financial services provided by a bank.

Total Deposits is a term included in the balance sheet of a bank. To a common person, the word
deposit most often implies the act of placing your money in the safety of a bank. When
calculating the Total Deposits from a bank’s perspective, various kinds of deposits are taken into
consideration. These are added together to determine the Total Deposits. Demands Deposits,
Term Deposits, and Interest and Non-Interest bearing deposits are the cumulative examples of
deposit items that are summed to get the value of Total Deposits.

Loans & Advances/Total deposits= Loans & Advances/Total Deposits

Table 2.10 Loans & Advances/Total deposits Ratio

Year 2015/2016 2014/2015 2013/2014 2012/2013 2011/2012

Ratio (%) 0.6901 0.628 0.7255 0.7289 0.7561

Loans & Advances/Total Deposite Ratio (%)

0.8

0.7

0.6

0.5
Percentage

0.4

0.3

0.2

0.1

0
2015/2016 2014/2015 2013/2014 2012/2013 2011/2012
Year

Figure 2.10 Loans & Advances/Total deposits Ratio

The above table and figure shows the Loan and Advances/Total Deposit of NABIL within the
duration of 5 years from 2011/2012 to 2015/2016. The higher investment in load and advances
shows higher income and higher risk. The highest ratio was in the F/Y 2011/12. However the
figure shows a fluctuating condition of Loan and Advances/Total Deposit.
b) Total expenses /Total Interest:
An interest expense is the cost incurred by an entity for borrowed funds. Interest expense is
a non-operating expense shown on the income statement. It represents interest payable on any
borrowings – bonds, loans, convertible debt, or lines of credit. It is essentially calculated as the
interest rate times the outstanding principal amount of the debt. Interest expense on the income
statement represents interest accrued during the period covered by the financial statements, and
not the amount of interest paid over that period. While interest expense is tax-deductible for
companies, in an individual's case, it depends on his or her jurisdiction and on the loan's purpose,
measured by following formula.

Total expenses /Total Interest: Total expenses /Total Interest

Table2.11 Total Expenses /Total Interest Ratio

Year 2015/16 2014/15 2013/14 2012/13 2011/12

Ratio (%) 29.72 38.80 34.41 38.33 51.44

60
Total Expenxes /Total Interest Ratio (%)

50

40
Percentage

30

20

10

0
2015/16 2014/15 2013/14 2012/13 2011/12
Year

Figure 2.11 Total Expenses /Total Interest Ratio

The above table and figure shows the Total Expenses/Total Interest ratio of NABIL within the
duration of 5 years from 2011/2012 to 2015/2016. The lower the ratio the higher the savings of
firm. The highest saving is in the F/Y 2015/16.
c) Interest Income/Loan and Advance:

Interest income is the amount of interest that has been earned during a specific time period.
This amount can be compared to the investments balance to estimate the return on
investment that a business is generating. The amount of interest may have been paid in cash,
or it may have been accrued as having been earned but not yet paid. In the latter case,
interest income should only be recorded if receipt of the cash is probable, and you can
ascertain the amount of the payment to be received. Interest income is earned from
investments that pay interest, such as in a savings account or certificate of deposit.

A loan and advance is a financial facility provided by the banks and financial institutions to help
their customers in financial need. A finance is a life blood for any type of business or a particular
need. So when one is not able to get a full amount of money by his own. He can use this type of
financial services provided by a bank.

Interest Income/Loan & Advance: Interest Income/Loan & Advance

Table 2.12 Interest Income/Loan & Advance

Year 2015/2016 2014/2015 2013/2014 2012/2013 2011/2012

Ratio (%) 8.09 8.79 10.30 12.29 14.74

Interest Income/Loan & Advance Ratio (%)

16

14

12

10
Percentage

0
2015/2016 2014/2015 2013/2014 2012/2013 2011/2012
Year

Figure 2.12 Interest Income/Loan & Advance

The above table and figure shows the Interest Income/Loan and Advances ratio of NABIL within
the duration of 5 years from 2011/2012 to 2015/2016. It indicates that how much the interest in
gained on loan and advances given by the bank. Higher the loan and advances given the higher
the interest income gained.

d) Net Profit/Loan & Advance:

The profit of a company after operating expenses and all other charges including taxes, interest
and depreciation have been deducted from total revenue. Also called net earnings or net income.
If expenses and charges exceed revenue, the company incurs a net loss.

A loan and advance is a financial facility provided by the banks and financial institutions to help
their customers in financial need. A finance is a life blood for any type of business or a particular
need. So when one is not able to get a full amount of money by his own. He can use this type of
financial services provided by a bank.

Net Profit/Loan & Advance: Net Profit/Loan & Advance

Table 2.13 Net Profit/Loan & Advance Ratio

Year 2015/2016 2014/2015 2013/2014 2012/2013 2011/2012

Ratio
3.7 1.03 4.24 4.78 4.08
(%)

Net Profit/Loan & Advance Ratio (%)

6

4
Percentage

0
2015/2016 2014/2015 2013/2014 2012/2013 2011/2012
Year

Figure 2.13 Net Profit/Loan & Advance Ratio

The above table and figure shows the Net Profit/Loan and Advances ratio of NABIL within the
duration of 5 years from 2011/2012 to 2015/2016. The figure shows highest ratio in F/Y 2012/13
and lowest in F/Y 2014/15.

e) Net Profit/Total Assets:

The profit of a company after operating expenses and all other charges including taxes, interest and
depreciation have been deducted from total revenue. Also called net earnings or net income. If expenses
and charges exceed revenue, the company incurs a net loss.

Total assets are the sum of all current and noncurrent assets that a company owns. They are reported on
the company balance sheet. The total asset figure is based on the purchase price of the listed assets, and
not the fair market value.

Net Profit/Total Assets: Net Profit/Total Assets

Table 2.14 Net Profit/Total Assets Ratio

Year 2015/2016 2014/2015 2013/2014 2012/2013 2011/2012

Ratio (%) 2.21 0.58 2.65 3.03 2.68

Net Profit/Total Assets Ratio (%)

3.5

2.5
Percentage

1.5

0.5

0
2015/2016 2014/2015 2013/2014 2012/2013 2011/2012
Year

Figure 2.14 Net Profit/Total Assets Ratio

The above table and figure shows the Net Profit/Total Assets ratio of NABIL within the duration
of 5 years from 2011/2012 to 2015/2016. It indicates the profitability of bank in relation to total
assets. The ratio is highest during F/Y 2012/13 and lowest during F/Y 2014/15. However the
condition shows growth of profitability during F/Y 2015/16.
Other Indicators
Above stated ratios, throw light on various aspects of bank. Management investors and creditors
can get information regarding their interest. Some indicators are dealt here which provide more
knowledge about the performance of the bank. They are listed below.

 Earnings per Share (EPS)

 Dividend per share (DPS)
 Price Earnings Ratio
 Book Value per Share
 Earnings Yield
 Dividend Yield

a) Earnings per Share (EPS):

Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share
of common stock. Earnings per share serves as an indicator of a company's profitability.
Earnings per share (EPS) is generally considered to be the single most important variable in
determining a share's price EPS is calculated as:

EPS = (Net Income - Dividends on Preferred Stock) / Average Outstanding Shares

Table 2.15 Earnings per Share

Year 2015/2016 2014/2015 2013/2014 2012/2013 2011/2012

Ratio (%) 59.27 57.24 76.12 91.05 83.57

Earnings Per Share (EPS) (%)

100
90
80
70
Percentage

60
50
40
30
20
10
0
2015/2016 2014/2015 2013/2014 2012/2013 2011/2012
Year

Figure 2.15 Earnings per Share

In the above figure cash flow from operation ratio of Nabil of different five year 59.27, 57.24,
76.12, 91.05 and 83.57 in 2015/16, 2014/15, 2013/14, 2012/13 and 2011/12 as respectively. It
indicates the profitability of a company. The higher the earnings per share of a company, the
better is its profitability. From the above figure. EPS shows decreasing trend during F/Y 2012/13
to F/Y 2014/15. However it increases during the F/Y 2015/16.

b) Dividend per Share (DPS):

Dividend per share (DPS) is the sum of declared dividends issued by a company for every
ordinary share outstanding. The figure is calculated by dividing the total dividends paid out by a
business, including interim dividends, over a period of time by the number of
outstanding ordinary shares issued. A company's DPS is often derived using the dividend paid in
the most recent quarter, which is also used to calculate the dividend yield.DPS can be calculated
by using the following formula:

Dividend per Share (DPS): Annual Dividend/Dividend Per share

Table 2.16 Dividend per Share

Year 2015/2016 2014/2015 2013/2014 2012/2013 2011/2012

Amount
4500 3686 6490 6498 6490
Rs.

Amount Rs
7000
6000
5000
Amount RS

4000
3000
2000
1000
0
2015/2016 2014/2015 2013/2014 2012/2013 2011/2012
Year

Figure 2.16 Dividend per Share

In the above figure Price Earnings ratio of Nabil of different five year 15, 6.84, 45, 40 and 40 in
2015/16, 2014/15, 2013/14, 2012/13 and 2011/12 as respectively. It tells an investor about the
company's past financial health and its current financial stability. From the table and figure
above it can be analyzed that the financial health is in stable condition from F/Y 2011/12 to F/Y
2013/14 however the stability decreases during F/Y 2014/15 but stability is again achieved for
the next F/Y.

c) Price Earnings Ratio:

The price-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current
price relative to its per-share earnings. The price-earnings ratio is also sometimes known as the
price multiple or earning multiple .It is the most power way of relative value of stock, measured
by following formula.
Price Earnings Ratio= Market Value per Share / Earnings per Share
Table 2.17 Price Earnings Ratio

Year 2015/16 2014/15 2013/14 2012/13 2011/12

Ratio (%) 39.55 33.37 33.30 19.93 19.33

Price Earning Ratio (%)

45
40
35
30
Percentage

25
20
15
10
5
0
2015/16 2014/15 2013/14 2012/13 2011/12
year

Figure 2.17 Price Earnings Ratio

In the above figure Price Earnings ratio of Nabil of different five year 39.55, 33.37, 33.30, 19,93
and 19.33 in 2015/16, 2014/15, 2013/14, 2012/13 and 2011/12 as respectively. It indicates the
amount an investor can expect to invest in a company in order to receive that company's
earnings. The P/E ratio shows increasing trend which is good for the shareholders.

d) Book Value per Share:

In accounting, book value is the value of an asset according to its balance sheet account balance.
For assets, the value is based on the original cost of the asset less any depreciation, amortization,
or impairment costs made against the asset. Traditionally, a company's book value is its total
assets minus intangible assets and liabilities. However, in practice, depending on the source of
the calculation, book value may variably include goodwill, intangible assets, or both. It can be
measured by following formula.

Book Value per Share= Total common shareholder equity /Number of common share
Table 2.18 Book Value per Share

Year 2015/16 2014/15 2013/14 2012/13 2011/12

Book value (RS) 244 259 251 275 269

Book Value Per Share (RS)

280
275
270
265
260
Rupes

255
250
245
240
235
230
225
2015/16 2014/15 2013/14 2012/13 2011/12
Year

Figure 2.18 Book Value per Share

In the above figure cash flow from operation ratio of Nabil of different five year 244, 259, 251,
275 and 269 in 2015/16, 2014/15, 2013/14, 2012/13 and 2011/12 as respectively. It indicates the
indicates the book value (or accounting value) of each share of stock. From the above table and
figure, it can be analyzed that the book value per share is fluctuating over the years.

e) Earnings Yield

Earnings yield are the earnings per share for the most recent 12-month period divided by the
current market price per share. The earnings yield (which is the inverse of the P/E ratio) shows
the percentage of each dollar invested in the stock that was earned by the company. The earnings
yield is used by many investment managers to determine optimal allocations. It is calculated by
following formula.
Earnings Yield= Earnings Per Share /Price Per Share

Table 2.19 Earnings Yield Ratio

Year 2015/16 2014/15 2013/14 2012/13 2011/12

Ratio (%) 2.53 3.00 3.00 5.02 6.14

Earnings Yield Ratio (%)

7
6
5
Perecntage

4
3
2
1
0
2015/16 2014/15 2013/14 2012/13 2011/12
Year

Figure 2.19 Earnings Yield Ratio

The table and figure shows the fluctuating trends of earning yield ratio of NABIL during the five
years. Starting earning yield ratio of NABIL is 6.14 in 2011/2012. Earning yield ratio of
2012/2013 is 5.02 decreased to 3.00 in 2013/2014 then remain same in 2014/2015 and again
decreased to 2.53 in 2015/2016.

f) Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to
its share price. Dividend yield is represented as a percentage and can be calculated by dividing
the dollar value of dividends paid in a given year per share of stock held by the dollar value of
one share of stock.

Dividend Yield = Annual Dividend Per Share/Price Per Share

Table 2.20: Dividend Yield Ratio

Year 2015/16 2014/15 2013/14 2012/13 2011/12

Ratio (%) 1.92 1.93 2.56 3.58 4.43
 Dividend Yield Ratio (%)
5
4.5
4
3.5
Perecentage

3
2.5
2
1.5
1
0.5
0
2015/16 2014/15 2013/14 2012/13 2011/12
Year

Figure 2.20 Dividend Yield Ratio

The table and figure shows the fluctuating trends of earning yield ratio of NABIL during the five
years. Starting earning yield ratio of NABIL is 6.14 in 2011/2012. Earning yield ratio of
2012/2013 is 5.02 decreased to 3.00 in 2013/2014 then remain same in 2014/2015 and again
decreased to 2.53 in 2015/2016.
 CHAPTER 3
CONCLUSION AND RECOMENDATION

3.1 Conclusion
This study examines the financial performance of Nepal top commercial Banks (Nabil). We are
analyzing with help of different ratios mostly use in the banks such as liquidity, leverage,
profitability turnover and others that we found financial performance of Nabil is better. Liquidity
ratio show short term obligation whereas liquidity ratio is less than normal standard. To compare
last two-year liquidity ratio is decreasing order. Higher ratio that is not better because ideal assets
earn nothing so bank should invest in productive area

The activity turnover ratio is used to examine the efficiency with which the firm manages and
utilizes its assets. Sufficient utilization their deposit in term of loan and advance for profit
generating. Interest income, total expense is decreasing order and other net profit total deposit
and advance is increasing order.

Profitability ratio is measurement of efficiency. It provides the degree of success in achieving

desired profit. Profitability in terms of gross profit, return on assets, return on equity and time
interest earned ratio, all these ratio are increasing order then last year .which so the efficiency of
bank is better way and getting good return from its investment.

In the above analysis expect P/E ratio, the ratios like EPS, DPS, E.Y, D.Y as well as book value
per share of the company are in decreasing trend which negatively affect the worth of the
company.

3.2 Recommendation
Based on the above financial analysis and the observation of the study, following
recommendation is suggested to overcome the weakness and inefficiency as well as improve the
present financial performance of Nabil Bank Limited. These information plays significant role
to:

Management

 The analysis shows that the current ratio of NBL is fluctuating within 5 years, which
shows it is adopting aggressive policy in the business that reflect its strong liquidity so
the company may follow defensive policy.
 The analysis shows the decreasing trend of ROA, so the management can overcome it by
improving its efficiency through optimum utilization of assets.
  The company is unable to utilize its source of fund properly so it is suggested to utilize
those idle deposits to various investments.
 Other than shareholder annual report the bank should publish and distribute booklets
containing detail information about the banks which helps to maintain harmonies
relationship between banks and customers.

Shareholder

 The decreasing trend of earning per share shows the lower earning of the company which
is not desirable to the shareholders.
 The increasing trend of P/E ratio indicates the stock are over -valued, so the shareholders
should hold the stock.
 The analysis shows that the decrement in the no of new investor shows less rate of return
to the investor which is shown by decreasing ROA.
 The overall declining DPS shows the lower rate of dividend yield.

Creditors

 For any organization the lower ratio of DEBT to Equity is considered better so, in the
above analysis it shows there is less risk of credit default of the company.
 The company utilize high debt in comparison to its assets in order to redeem it the
company can issue common stock.
 ANNEXURE
Annex-I

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠
Current Ratio=
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

1640632219+5826016495+2796200111+819418493
For Fiscal Year 2015/16 = = 0.12
110267271749+453715059+713485440+2072663926
16327281034
For Fiscal Year 2014/15 = = 0.15
106200109924
3656602080+3984457976+300000000
For Fiscal Year 2013/14 =
75388790862+213576294+1371225708+2510756+2357452783

= 0.1
3045051750+3643092761+300000000
For Fiscal Year 2012/13 =
63609808199+529597845+974736560+66872707+1071099849

= 0.9806
1050658504+3681980327+1548964565+826435677
For Fiscal Year 2011/12 =
55023695253+179142358+811907760+51106490+1072481023

= 0.12

Annex-II

𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
Earnings per Share=
𝑁𝑜. 𝑜𝑓 𝑆ℎ𝑎𝑟𝑒 𝑂𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔

2819333752
For Fiscal Year 2015/16 = = 59.27%
47565696
2093813608
For Fiscal Year 2014/15 = = 57.24%
36576540
2319631032
For Fiscal Year 2013/14 = = 76.12%
30471684
 2218761843
For Fiscal Year 2012/13 = = 91.05%
2436841400
1696276110
For Fiscal Year 2011/12 = = 83.57%
2029769400

Annex-III

𝐴𝑛𝑛𝑢𝑎𝑙 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑
Dividend per Share=
𝑁𝑜. 𝑜𝑓 𝑆ℎ𝑎𝑟𝑒

2140456320
For Fiscal Year 2015/16 = = Rs.4500
47565696
1347556737
For Fiscal Year 2014/15 = = Rs.3686
336576540
197761229160
For Fiscal Year 2013/14 = = Rs.6490
30471684
158345954172
For Fiscal Year 2012/13 = = Rs.6498
24368414
121847057082
For Fiscal Year 2011/12 = = Rs.6003
20297694

Annex-IV

𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠

Total Interest Expenses/ Total Interest Income=
𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐼𝑛𝑐𝑜𝑚𝑒

1829689197
For Fiscal Year 2015/16 = = 8.79
6155660129
2236063893
For Fiscal Year 2014/15 = = 38.80
5762345126
1939745260
For Fiscal Year 2013/14 = = 34.41%
5636158253
2186184871
For Fiscal Year 2012/13 = = 38.33%
5702122918
3155490469
For Fiscal Year 2011/12 = = 51.44%
6133739091
Annex-V

𝐺𝑟𝑜𝑠𝑠 𝑝𝑟𝑜𝑓𝑖𝑡
Gross Profit Ratio=
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐼𝑛𝑐𝑜𝑚𝑒

4344447596
For Fiscal Year 2015/16 = = 0.7057
6155660129
3235924937
For Fiscal Year 2014/15 = = 0.561
5762345126
3549363372
For Fiscal Year 2013/14 = = 0.629
5636158253
3464952933
For Fiscal Year 2012/13 = = 0.9854
3515938077
2640336248
For Fiscal Year 2011/12 = = 0.4309
6126854828

Annex-VI

𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
Net Profit/Loan &Advances=
𝐿𝑜𝑎𝑛 & 𝐴𝑑𝑣𝑎𝑛𝑐𝑒𝑠

2819333752
For Fiscal Year 2015/16 = = 3.70
76106016881
674731821
For Fiscal Year 2014/15 = = 1.03
65501925164
2319631032
For Fiscal Year 2013/14 = = 0.0424
54691648194
2218761843
For Fiscal Year 2012/13 = = 0.047
46369834571
1696276110
For Fiscal Year 2011/12 = = 4.08
41605682634
Annex-VII

𝑇𝑜𝑡𝑎𝑙 𝐷𝐸𝐵𝑇
DEBT Equity =
𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦
127300195−(6183540480+5409518719)
For Fiscal Year 2015/16 = = 9.98
6183540480+5409518719
106200109924
For Fiscal Year 2014/15 = = 10.85
9785591487
87274619480−(3656602080+3984457976+300000000)
For Fiscal Year 2013/14 = = 9.99
3656602080+3984457976+300000000
73241259671−(3046051750+3643092761+300000000)
For Fiscal Year 2012/13 = = 9.75
3046051750+3643092761+300000000

For Fiscal Year 2011/12=

65200298255−(2435723280+3015162091+300000000)
= 10.59
2435723280+3015162091+300000000

Annex-VIII

𝑇𝑜𝑡𝑎𝑙 𝐷𝐸𝐵𝑇
DEBT Assets=
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

1.15707163200000000000
For Fiscal Year 2015/16 = =0.90
127300195373
106200109924
For Fiscal Year 2014/15 = = 0.91
115985701411
87274619480−(3656602080+3984457976+300000000)
For Fiscal Year 2013/14 = = 0.91
87274545920
73241259671−(3046051750+3643092761+300000000)
For Fiscal Year 2012/13 = = 0.9045
73241259671
65200298255−(2435723280+3015162091+300000000)
For Fiscal Year 2011/12 = =0.9138
63200298255
Annex-IX

Loans & 𝐴𝑑𝑣𝑎𝑛𝑐𝑒𝑠

Loans & Advances/Total Deposit=
Toatal Deposite

76106016881
For Fiscal Year 2015/16 = = 0.69
110267271749
65501925164
For Fiscal Year 2014/15 = = 0.628
54691648194
54691648194
For Fiscal Year 2013/14 = = 0.7255
75388790862
46369834571
For Fiscal Year 2012/13 = = 0.73
63609808199
41605682634
For Fiscal Year 2011/12 = = 0.7561
55023695253

Annex-X

Net Income
Return on Assets (ROA) =
Toatal Assets

28193337527
For Fiscal Year 2015/16 = = 0.022
127300195373
2093813608
For Fiscal Year 2014/15 = = 0.018
115985701411
2319631032
For Fiscal Year 2013/14 = = 0.026
87274545920
2218761843
For Fiscal Year 2012/13 = = 0.03
73241259671
1696276110
For Fiscal Year 2011/12 = = 0.0268
63200298255
Annex-XI

Net Income
Return on Equity (ROE) =
Toatal Shareholders Equity

2819333752
For Fiscal Year 2015/16 = = 0.024
1159305920000000000
2093813608
For Fiscal Year 2014/15 = = 0.220
9485591487
2319631032
For Fiscal Year 2013/14 = = 0.3036
3656602080+3984457976
2218761843
For Fiscal Year 2012/13 = = 0.332
3046051750+3643092761
1696276110
For Fiscal Year 2011/12 = = 0.3112
2435723280+3015162091

Annex-XII

Total Common Shareholder/Equity

Book Value per Share =
No. Of Common Share

1159305920
For Fiscal Year 2015/16 = = Rs. 244
47565696
9485591486
For Fiscal Year 2014/15 = = Rs.259
36576540
3656602080+3984457976
For Fiscal Year 2013/14 = = Rs. 251
30471684
3046051750+3643092761
For Fiscal Year 2012/13 = = Rs. 275
24368414
5450885371
For Fiscal Year 2011/12 = = Rs. 269
2029769400
Annex-XIII

Net Profit
Net Profit/Total Assets=
Toatal Assets

2819333752
For Fiscal Year 2015/16 = = 0.02
127300195373
674731821
For Fiscal Year 2014/15 = = 0.58
115985701411
2319631032
For Fiscal Year 2013/14 = = 0.026
87274619480
2218761845
For Fiscal Year 2012/13 = = 0.03
73241259671
1696276110
For Fiscal Year 2011/12 = = 0.027
63200298255

Annex-XIV

Market Per Share

P/E Ratio=
Earnings Per Share

2344
For Fiscal Year 2015/16 = = 39.55
59.27
1910
For Fiscal Year 2014/15 = = 33.37
57.24
2535
For Fiscal Year 2013/14 = = 33.30
76.12
1815
For Fiscal Year 2012/13 = = 19.93
91.05
1621
For Fiscal Year 2011/12 = = 19.39
83.57

Annex-XV

Interest Income
Interest Income/Loans & Advances=
Loans & 𝐴𝑑𝑣𝑎𝑛𝑐𝑒𝑠
 6155660129
For Fiscal Year 2015/16 = = 8.09
76106016881
5762345126
For Fiscal Year 2014/15 = = 8.79
65501925164
5636158253
For Fiscal Year 2013/14 = = 10.30
54691648194
570212291843
For Fiscal Year 2012/13 = = 12.29
46369834571
6133739091
For Fiscal Year 2011/12 = = 14.74
4160523466

Annex-XVI

Net Income+Interest+Tax
Time Interest Earned Interest =
Interest Expenses

2819333752+1829689197+1188442202
For Fiscal Year 2015/16 = = 3.19
1829689197
2093813607+2236063893+887513713
For Fiscal Year 2014/15 = = 2.33
2236063893
2319631631+1939745260+982930369
For Fiscal Year 2013/14 = = 2.70
1939745260
2219017709+2186184871+950385987
For Fiscal Year 2012/13 = = 2.45
2186184871
1696276110+3155490469+720108902
For Fiscal Year 2011/12 = = 1.23
3155490469

Annex-XVII

CFFOA+Interest paid+Tax Paid

Debt Service Coverage Ratio =
Interest+Principal Payment
 2033437060+1829478721+1206056195
For Fiscal Year 2015/16 = = 2.66
1829478721+74857289
7332430808+2235959098+1058384374
For Fiscal Year 2014/15 = = 4.58
2235959098+82039026
3734149574+1943431133+393295735
For Fiscal Year 2013/14 = = 3.31
1943431133+85663300
1752367834+2186301648+936874917
For Fiscal Year 2012/13 = = 2.13
2186301648+107699734
3487131888+3157092774+721299612
For Fiscal Year 2011/12 = = 4.27
3157092774+85750103

Annex-XVIII

CFFOA−Dividend Paid
Cash flow From Operation to Capital =
Net Acquisitions

2033437060−159835954
For Fiscal Year 2015/16 = = 25.08
74857289
7332430808−1795945244
For Fiscal Year 2014/15 = = 67.49
82039026
3734149574−480973063
For Fiscal Year 2013/14 = = 37.98
85663300
1752367834−806007732
For Fiscal Year 2012/13 = = 8.79
107699734
3487131888−601036078
For Fiscal Year 2011/12 = =33.65
85750103

Annex-XIX

Earning Per Share

Earning Yield=
Price Per Share

59.27
For Fiscal Year 2015/16 = = 2.53
2344
 57.24
For Fiscal Year 2014/15 = = 3.00
1910
76.12
For Fiscal Year 2013/14 = = 3.00
2535
91.05
For Fiscal Year 2012/13 = = 5.24
1815
83.23
For Fiscal Year 2011/12 = = 6.12
1355

Annex-XX

Dividend Per Share

Dividend Yield=
Price Per Share

4500
For Fiscal Year 2015/16 = = 1.92
2344
3686
For Fiscal Year 2014/15 = = 1.93
1910
6490
For Fiscal Year 2013/14 = = 2.56
2535
6498
For Fiscal Year 2012/13 = = 3.58
1815
6003
For Fiscal Year 2011/12 = = 4.43
1355
 BIBLIOGRAPHY

Annual report 2015/16, 2014/15, 2013/14, 2012/13, 2011/12 of Nabil bank limited.
Website: http://nabilbank.com.np
Website: http://nrb.org.np
Website: http://www.google.com