Nabil Bank Dividend Outlook: What Investors Can Expect

Nabil Bank Limited, Nepal’s first private sector commercial bank, has long been recognized as one of the most consistent dividend-paying institutions in the Nepal Stock Exchange (NEPSE). Known for its strong financial performance, large customer base, and solid market presence, Nabil continues to attract both institutional and retail investors seeking stability and steady returns.

A Strong Dividend Track Record

Since its establishment, Nabil Bank has maintained a reputation for rewarding shareholders. Over the past decade, its dividend history has been impressive, with annual payouts often exceeding 30–40% in combined cash and bonus shares. While recent years have seen a shift toward moderate cash dividends—such as 11% in FY 2079/80 and 10% in FY 2080/81—the consistency remains unmatched in Nepal’s banking sector.

Recent Financial Highlights

In the fourth quarter of FY 2081/82, Nabil Bank reported:

• Net profit: NPR 7.12 billion (up 15% year-over-year)

• Distributable earnings: NPR 4.77 billion (up nearly 55%)

• Dividend capacity: ~17.6%

These figures suggest the bank is well-positioned to continue rewarding shareholders, even as it balances capital adequacy requirements and reinvestment needs.

What’s Driving Dividend Expectations?

1. Strong profitability: Earnings growth has supported distributable reserves.

2. Conservative payout trend: In recent years, the bank has leaned toward stable cash dividends rather than large bonus issues.

3. Regulatory environment: With higher paid-up capital requirements, banks are under pressure to retain earnings.

4. Market sentiment: Investors still view Nabil as a “blue-chip” dividend stock, despite short-term share price fluctuations.

Dividend Prediction

Based on its financial strength and distributable earnings, experts anticipate Nabil Bank could declare a 12–15% cash dividend for FY 2081/82. While this is more conservative than its historical highs, it reflects the bank’s balanced strategy of growth, compliance, and shareholder reward.

Investor Takeaway

For long-term investors, Nabil Bank remains a cornerstone stock in NEPSE portfolios. Its combination of stability, reliable dividends, and leadership in the banking sector make it a sustainable opportunity, even in a volatile market. Although dividend percentages may be lower than in the past, the predictability and strength of payouts continue to set Nabil apart.

NEPSE crosses level of 1200 to close at 1200.92 - NEW HISTORY MADE.

NEPSE index crosses the level of 1200 to close at 1200.92 recording surge of 9 points or 0.76 percent.

The total turnover of the day amounted Rs 77.31 crore where more than 16 lakh unit shares of 145 companies were traded through 5720 transactions.

The local bourse opened at 1191.93 this afternoon and went up to 1220 level within the initial hour and there after slipped meager points before closing at 1200.92 level.

Compulsorily trading of all commercial banks in demat led the investors ease in investing in those shares where the increase in demand of these shares has increased their respective share prices.

Maximum trading were done of shares like PRVU, SCBIL, NBB, GBIME, SBI, PCB, EBL and NABIL.

Shares price of companies like KMCDB, NICL, NLG, PIC, KBBL, JBBL and JEFL surged more than 8 percent today.

NEPSE has already broken the all-time high level and every surge in the level of the benchmark will take the NEPSE index to the new level.

HydroPower was the only sector to land in red today where Banking, Development and Finance gained 8.44 points, 10.42 points and 3.67 points respectively.

Insurance, Manufacturing and Others gained in double digits.- SSN

Nepse index surges past previous high to 1,088.42 points

The bull run witnessed in the country’s only secondary market since the past two months continued in the trading week of August 9 to 14, driving up the Nepal Stock Exchange (Nepse) index to close at nearly a seven-year high of 1,088.42 points. The benchmark index soared by 48.06 points or 4.62 per cent week-on-week to breach the previous high of 1,083.55 points that was recorded on July 21, last year.

Investor optimism following the central bank’s latest monetary policy requiring financial institutions to increase their paid-up capital has been further boosted by the positive development at the political front.

Consequently, starting the week at the previous week’s close of 1,040.36 points, the benchmark index surged by 23.05 points by the day’s closing on Sunday. The Nepse index ascended by another 17.95 points on Monday, but shed 3.58 points and 0.59 points on Tuesday and Wednesday, respectively, due to profit-booking. However, the local bourse more than regained all the loss on Thursday by climbing 11.23 points. The last time Nepse had closed at the current level was on August 26, 2008, when it had rested at 1,087.80 points.

All in all, 5.56 million units of shares of 168 companies worth Rs 3.18 billion were traded at Nepse during the trading week through 21,487 transactions. The traded amount was 28.55 per cent higher than the preceding week when 17,482 transactions of 4.84 million scrips of 172 firms worth Rs 2.48 billion had been undertaken.
The sensitive index, which gauges the performance of class ‘A’ stocks, rose by 12.03 points to 234.81 points. Similarly, the float index that measures the performance of shares actually traded also added 2.96 points to land at 77.46 points during the review period.
While trading remained constant at 212.92 points, hydropower and finance were the only two subgroups to record losses.

The bull run in the stock market can be attributed to the massive demand for stocks of commercial banks as the banking subgroup has the highest stake in Nepse’s market capitalisation. The banking sub-index increased by 72.43 points to 1,021.34 points. Nabil Bank’s stocks closed at Rs 2,500 (up Rs 200), Standard Chartered’s at Rs 2,730 (up Rs 402), and Nepal Investment Bank’s at Rs 1,000 (up Rs 199), among others.

Meanwhile, similar to the previous week, insurance was the top gainer in the week, surging by 130.46 points to 4,609.67 points. Share value of National Life Insurance soared by Rs 115 to Rs 2,130 and that of Life Insurance Co Nepal by Rs 162 to Rs 3,352, among others.
Unilever’s scrips gaining a hefty Rs 2,300 to close at Rs 23,700 helped the manufacturing subgroup to more than recover the loss of the previous week and ascend by an impressive 125.29 points to rest at 1,802.76 points.

Hotels went up by 11.59 points to 1,875.79 points. Even as Oriental’s scrips dropped by Rs 28 to Rs 585 and Taragaon’s dipped by four rupees to land at Rs 241, the loss was offset by Soaltee’s shares edging up by eight rupees to Rs 438.

Nepal Telecom’s share value went up by six rupees to close at Rs 621, which in turn pulled up the others subgroup by 7.04 points to 729.57 points.

Development banks inched up by 2.85 points to 856.83 points. On the other hand, hydropower slumped by 40.38 points to 2,101.55, as Chilime’s shares lost Rs 61 to land at Rs 1,520 and Ridi Hydropower’s was down Rs 12 to Rs 395.
Likewise, finance dipped by 4.2 points to 539.28 points.NIC Asia Bank topped the chart in terms of number of shares traded and turnover, with 342,000 of its scrips worth Rs 281.57 million changing hands. Everest Bank with
Rs 206.32 million, Nepal Investment Bank with Rs 171.75 million, Nepal SBI Bank with Rs 141.76 million and Nepal Bangladesh Bank with Rs 138.63 million were the other firms to record high turnover during the review period.
Meanwhile, Century Commercial Bank was the forerunner with regards to number of transactions, clocking a total of 1,334 deals. - HNS

Nabil Bank announces 45% cash & 20% bonus shares for FY 2070/71

Nabil Bank Ltd has announced 65 percent dividend to its shareholders from the net profit that it has earned in last fiscal year 2070/71.

The top profit earner among the private commercial bank has said that it will distribute 45 percent cash dividend and 20 percent bonus shares to its shareholders.

Profitability of commercial banks down to 19.23pc on FY 2070/71

Profitability of commercial banks took a beating last fiscal year, as capital fund bulged, while earnings grew moderately.

Average return on equity (RoE) — a measure to gauge profitability — of 30 commercial banks stood at 19.23 per cent in mid-July, as against 22.19 per cent in the same period the previous fiscal. (The RoE was calculated by comparing capital fund of mid-July, 2013 with net profit of fiscal 2013-14 that ended in mid-July, 2014.)

Mega Bank Nepal retains existing CEO Anil Keshary Shah

Mega Bank Nepal has extended the term of its existing CEO Anil Keshary Shah. The bank decided to extend his term by another four years till December 9, 2017, during the bank’s board meeting held today. The 28th commercial bank of Nepal came into operation in July 2010. Shah, 47, has previously worked for Standard Chartered Bank Nepal and Nabil Bank. He was the founding CEO of Nabil Bank.

Nabil offers 40% cash & 25% bonus share, AGM on Dec 27

Nabil Bank Limited has proposed 65 percent dividend – 40 percent cash and 25 percent bonus share — to the shareholders from the net profit it registered in the last fiscal year 2069/70.

The commercial bank’s board of directors has just taken the decision to this effect, which is, however, subject to the approval of Nepal Rastra Bank and the Annual General Meeting of the commercial bank.

Global IME and Commerz and Trust likely to finalize merger this week

After months of closed-door negotiations with various BFIs, Commerz and Trust Bank Nepal Limited has more or less decided to merge with Global IME Bank.

NEPSE flourish by 3.06 points to 578.68 as investors opt entry

Continuing its yesterday’s recovery, the stock index of Nepal today further flourish by 3.06 points, propelling the NEPSE index to 578.68 levels.

Nepse falls to 575.41

Enduring yet another tumble, the market index came to suffer a loss of 2.36 points by the end of today’s session. With today’s decline, the local bourse has come to sustain plunge for the fifth straight trading days—the stock index till date has come to decrease by 12.51 points.

Dividend announcements fail to attract investors

Despite the attractive dividend announcements, lack of bonus shares dampened investor confidence and share prices failed to increase.

This year, the dividend offering has risen in comparison to last year especially by finance companies and development banks. However, since the past one and a half months, the stock index of the three subgroups commercial banks, development banks and finance companies  has remained static.

NEPSE recovers by 3.64 points to settle at 541.95 levels

Breaking its bearish rampage, Nepal Stock Exchange today made a recovery of 3.64 points to settle at 541.95 levels. Earlier, for the four consecutive trading days, the market index was galloping downside, suffering 13.69 points in total.

Free float index in NEPSE

Nepal Stock Exchange (Nepse) has been using float index and sensitive float index — the globally accepted best practice to make the secondary market index more realistic.
Free-float methodology refers to an index construction methodology that takes into consideration only the free-float market capitalisation of a company for the purpose of index calculation and assigning weight to stocks in index.

Nepse index up as companies announce dividends

The dividend announcements seem to have buoyed investors as the market reacted positively to the string of dividends declared this week — September 8 to 12.

The index gained 2.95 points on the week’s trading as the dividend announcements of Chilime Hydropower, Nabil Bank and Everest Bank affected the market. Chilime’s shares registered a gain of Rs 83 per unit, while Nabil Bank’s shares shot up by Rs 145 per unit. However, Everest Bank’s shares suffered as the dividend announcement though hefty disappointed investors by its scanty bonus share allotments and its shares fell by Rs 187 per unit.

Major Companies’ dividend declaration hints at surging market

If the announcement of largely impressive dividends by major players last week is anything to go by, the share market is likely to head in the right direction in the days to come.
Analysts say that the development is quite encouraging, though it may be too early to hint at a bullish trend.

Financial indicators of Commercial Banks of FY 2069/70

Financial indicators of Commercial Banks of the fiscal year 2069/70

Name of the company:                               Paid up captial /     Reserve /      Net Profit (Loss) / NPL   / EPS / P/E Ratio/ NWPS
1. Agricultural Development Bank Limited:    9636.800m        /5758.292m/           2259.947m      /5.72%  /58.55      /3.62     /267.88
2. Bank of Kathmandu Limited:                        1684.397m        /1632.658m             /617.090m      /1.50%   /36.64      /15.09   /196.93
3. Citizens' Bank International Bank Limited:   2101.84m        / 567.149 m             / 399.608 m    /2.02%   /19.01      /14.04   /126.98
4. Civil Bank Limited:                                             2000m            /153.099m               /121.264m     /0.50%    /7.56       /19.70   /107.65

Net profit of commercial banks up

Commercial banks seem to have recovered from shadows of bad loans made in the past, as they registered a whopping rise in net profit last fiscal year.

The net profit of class ‘A’ financial institutions increased by 40 per cent in the last quarter of fiscal year 2012-13, according to their recently published unaudited financial reports. The 31 commercial banks have earned a net profit worth Rs 20.1 billion, which stood at Rs 14.3 billion in the corresponding period of the previous fiscal year. Only Kist Bank registered a loss.

14 years of Nepal stock experience sharing

I would like to share my experience and I believe it will be useful for some forum members to make an appropriate investment decision.

I have been investing in Nepal Stocks since last 14 years, initially started from investing in IPOs and then gradually jumped into secondary market and have been continually buying good companies stocks. All my investments were/are from my own savings and therefore, I have never taken any loan from any individual and financial institution as of now. That is was the sole reason why I did not sale any shares in loss during those bearish periods when I suffered with significant reduction in total value of my stock.

Commercial Banks' Net profit comparison list with last year

Commercial banks recorded handsome profits last fiscal year. As of now, 11 banks have published their fourth-quarter reports of 2012-13, and net profits of all the banks have increased compared to the fourth quarter of 2011-12.
Bankers attributed the rise in profits to three factors—increment in the net interest income, foreign exchange earnings and write back of loans.

Nabil Bank profit increases 31.24%, settled at Rs 2.23 arba, highest ever of any commercial bank

Nabil Bank has reported a net profit of Rs 2.23 arba for the FY 2069/70, a growth of 31.24% over the profit earned in the corresponding period last year.

The bank’s deposits grew 15.69% to Rs 63.51 arba and loans and advances rose 11.15% to Rs 47.64 arba.

Nabil’s EPS stands at Rs 91.58 and net worth per share at Rs 315.