Financial analysis of NMB Bank for the fiscal year of

2073

NMB Bank Limited, licensed as an “A” class financial institution by Nepal Rastra
Bank in May 2008, has been operating in the Nepalese financial market for over
twenty years and is one of the leading commercial banks in the banking industry.
Balance sheet
Balance Sheet summarizes the assets, liabilities and the equity of the fiscal year.
Henceforth, for the fiscal year 2073 the balance sheet are as follows:
1. Capital and liabilities
 Share capital = (5518635934-2732364746)/2732364746*100
= 101.97
Company’s share capital has been increased by 101.97% in year
2073. As last year’s share capital was 2732364746 and this year it is
5518635934.
 Reserve and funds = (1342523574-564082222)/564082222*100
= 138
Company’s reserve and funds has been increased by 138% in year
2073. As last year’s reserve and funds was 564082222 and this year is
1342523574.
 Debentures and bonds = (500000000-500000000)/500000000*100
=0
Company’s debentures and bonds has been increased by 0% in year
2073. As last year’s debenture and bonds were 500000000 and this
year is also 500000000.
 Borrowings = (1487994615-438000000)/438000000*100
= 239.7
Company’s borrowings have been increased by 239.7% in year 2073.
As last year’s borrowings were 438000000 and this year it is
1487994615.
 Deposits = (64781463622-36722917654)/ 36722917654*100
= 76.4
 Company’s deposits have been increased by 76.4% in year 2073. As
last year’s deposits were 36722917654 and this year it is
64781463622.
 Bills payable = (0-21717138)/21717138*100
= -100
Company’s bills payable has been decreased by 100% in year 2073.
As it has been paid this year.
 Proposed dividend = (54300625-17492881)/ 17492881*100
= 210.4
Company’s proposed dividend have been increased by 210.4% in
year 2073. As last year it was 17492881 and this year it is 54300625.
 Other liabilities = (928409514-340888475)/ 340888475*100
= 172.3
Company’s other liabilities have been increased by 172.3% in year
2073. As last year it is 340888475 and this year it is 928409514.
 Total liabilities = (74613327884-41337463116)/ 41337463116*100
=80.5
Company’s total liabilities have been increased by 80.5% in year
2073. As last year it was 41337463116 and this year it is
74613327884.

2. Assets
 Cash balance = (1491151855-817585058)/ 817585058*100
= 82.3
Company’s cash balance has been increased by 82.3% in year 2073.
As last year’s cash balance was 817585058 and this year it is
1491151855.
 Balance with Nepal Rastra Bank (NRB) = (6390585135-3391244786)/
3391244786*100 = 88.4
Company’s balance with Nepal Rastra Bank has been increased by
88.4% in year 2073. As last year’s balance with NRB was 3391244786
and this year it is 6390585135.
 Balance with banks/ financial institutions = (2298801972-
2096712284)/ 2096712284*100 = 9.6
 Company’s balance with banks/financial institutions has been
increased by 9.6% in year 2073. As last year it was 2096712284 and
this year it is 2298801972.
 Money at call and short notice = (557822817-722607414)/
722607414*100
= -22.8
Company’s money at call and short notice has been decreased by
22.8% in year 2073. As last year it was 722607414 and this year it is
557822817.
 Investments = (8504125557-5983872284)/ 5983872284*100
= 42.1
Company’s investments have been increased by 42.1% in year 2073.
As company’s investments last year was 5983872284 and this year it
is 8504125557.
 Loans, advances and bills purchased = (53021384326-27288891489)/
27288891489*100
= 94.3
Company’s loans, advances and bills purchased has been increased
by 94.3% in the year 2073. As last year it was 27288891489 and this
year it is 53021384326.
 Fixed assets = (1345519344-374253130)/ 374253130*100
= 259.5
Company’s fixed assets has been increased by 259.5% in the year
2073. As company’s fixed assets last year was 374253130 and this
year it is 1345519344.
 Other assets = (1003936878-662296671)/ 662296671*100
= 51.5
Company’s other assets has been increased by 51.5% in the year
2073. As company’s other assets last year was 662296671 and this
year it is 1003936878.
 Total assets = (74613327884-41337463116)/ 41337463116*100
= 80.5
Company’s total assets have been increased by 80.5% in the year
2073. As company’s total assets last year was 41337463116 and this
year it is 74613327884.
Profit and Loss Account
An account in the books of an organization to which incomes and gains are
credited and expenses and losses debited, to show the net profit or loss over a
given period.
 Interest income = (4053340661-2315441198)/ 2315441198*100
= 75.1
Comparison of Interest Income with Net Profit of the company
=4053340661/ 1115064627
= 3.6%
The contribution of Interest Income of the company accounted 3.6%
in the fiscal year 2073.
 Interest expenses = (2040059139-1348073632)/ 1348073632*100
= 51.3

Net interest income = (2013281522-967367566)/ 967367566*100)

= 108.1

 Commission and discount = (197615501-

112615711)/112615711*100
= 75.5%

 Other operating income = (218105846-112270220)/ 112270220*100

= 94.3