Look at the detailed overview and past performance of one of the leading commercial banks: Nabil Bank Limited
Fri, Jul 19, 2019 6:50 AM on Exclusive, Stock Market, Company Analysis, Featured,
SYMBOL: NABIL
SECTOR: COMMERCIAL BANK
TOTAL LISTED SHARES: 90,084,075 (Promoter: Public = 60:40)
INTRODUCTION:
Nabil Bank Limited (previously known as Nepal Arab 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. 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. 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.
|
Branches |
ATMs |
|---|---|
|
79 |
133 |
(As per Bank's website)
BOARD OF DIRECTORS
|
Name |
Role |
Experience |
|---|---|---|
|
Mr. Shambhu Prasad Poudyal |
Chairman
|
More than 17 years of experience at NRB and held directorship at diverse companies. |
|
Mr. Nirvana Chaudhary |
Board Member
|
Managing director of Chaudhary Group. Also holds directorship at United Insurance Company. |
|
Mr. Pratap Kumar Pathak |
Board Member |
Served at many government offices and held the post of Expert Consultant of the Ministry of Youth and Sports |
|
Mr. Virender Paul Dani |
Board Member |
Served as MD & CEO of Nepal SBI Bank. Held the post of Senior VP of SBI Life Insurance Co. Ltd., Mumbai. |
|
Mr. Dayaram Gopal Agrawal |
Board Member |
Entrepreneur, a social activist and a media person. More than 30 years of experience in the business. |
|
Mr. Upendra Prasad Poudyal |
Board Member |
Served at SCB and NMB banks and was president of Nepal Banker's Association. |
|
Mr. Malay Mukherjee |
Board Member |
Senior executive with an extensive knowledge in credit analysis, risk management and technology development. |
CHIEF EXECUTIVE OFFICER
Mr. Anil Keshary Shah
Mr. Shah started his banking journey as a teller at Nepal Grindlays Bank (later Standard Chartered Bank Nepal). Later he became Head of Consumer Banking and Chief Operating Officer at the same bank, after which he moved to Nabil Bank where he was appointed as the CEO after a year. Later he became the CEO of new venture, Mega Bank, before moving again to Nabil Bank. He is also known for his motivational talks among youths.
FINANCIAL INDICATORS
|
Ratio |
Indicator |
FY 15/16 |
FY 16/17 |
FY 17/18 |
Q3 18/19 |
|---|---|---|---|---|---|
|
Net Profit/Gross Income |
Percent |
37.30 |
39.22 |
31.12 |
60.82 |
|
Earnings Per Share |
NPR |
59.27 |
59.86 |
49.51 |
47.69 |
|
Market Value Per Share |
NPR |
2,344 |
1,523 |
921 |
736 |
|
Price Earnings Ratio |
Ratio |
39.55 |
25.44 |
18.60 |
15.59 |
|
Dividend (inc. Bonus) |
Percent |
45.00 |
48.00 |
34.00 |
- |
|
Cash Dividend |
Percent |
15.00 |
18.00 |
22.00 |
- |
|
Return on Total Assets |
Percent |
2.32 |
2.69 |
2.61 |
2.33 |
|
Return on Equity |
Percent |
25.61 |
22.41 |
20.94 |
19.48 |
|
Book Net Worth |
NPR |
244 |
270 |
256 |
242.38 |
Source: Annual and Quarterly Reports, (*Profit Ratio, EPS, ROA, ROE are annualized)
FACTS AND FIGURES
Note: All the data plotted in the figures above for the last period 2018/19 include only 9 months data (up to Chaitra of 2075), due to which profit seems to be lowered compared to other years. However, based on the third quartile profit, the annualized profit and CAGR would be Rs. 4,254,761,333.3 and15% respectively.
KEY INDICATORS V/S INDUSTRY
(Source: SS Pro)
PRICE HISTORY OF NABIL SINCE JULY 2015
Highest Trading Price: Rs 2,794
Lowest Trading Price: Rs 678
Highest Closing Price: Rs 2,700
Lowest Closing Price: Rs 682
52 Week High: Rs 984
52 Week Low: Rs 678
DIVIDEND HISTORY
MONTHLY STOCK OUTLOOK
(Source: SS Pro)
Based on its stock performance since 2011, Nabil Bank Limited (NABIL) has closed higher in 88.89 % of July months. In terms of price change, it has gained the most (10.56 % on average) in April month.
MEASUREMENT OF INVESTMENT RISK (VaR)
SYSTEMATIC RISK (β)
With double digit Compound Annual Growth Rate (CAGR) on various parameters like deposits, loans, total assets, and profit, Nabil Bank is still going strong in the industry even after 35 years of its operation. It is the industry leader in Earning per Share (EPS) and is second to Nepal Bank Limited in terms of Networth per share.
Though PEG ratio and Graham number suggest overvaluation of Nabil Bank's stock price, lucrative dividend declaration and strong fundamentals have always attracted investors to purchase its shares.
