Nepal Investment Bank last 5 years total dividend is 196%; How much do you expect this year?

September 25, 2019 | Investopaper

Nepal Investment Bank has reported a profit of Rs. 3.42 Arba in the fiscal year 2075/76. The profit has declined by 6.66 percent from the previous year. The bank has not announced dividend to the shareholders yet.

Nepal Investment Bank has distributed almost 196 percent in dividends in the last 5 fiscal years. The bank has consistently provided dividend ranging from 35 percent to 40 percent. The dividend distribution is shown in the table below:

Fiscal Year Bonus Share (%) Cash Dividend (%) Total Dividend (%)
2070/71 15 25 40
2071/72 33 1.7 34.7
2072/73 20 21 41
2073/74 15 25 40
2074/75 18 22 40

Despite impressive dividend in the previous 5 years period, the dividend this year may be less than satisfactory.

The distributable profit of the bank is at Rs. 1.39 Arba. At current capital of Rs. 12.87 Arba, the bank has a dividend-paying capacity of almost 11 percent. We expect the bank to provide a 10 percent dividend this year. The dividend may be in terms of bonus share as NIB is focused on increasing the capital.

How much will the Nepal Investment Bank propose in dividend this year? Share your views and let us know what you expect from the bank.

Read Related Contents:

Dividend Announcement of Companies from FY 2075/76

Financial Performance Analysis of Commercial Banks of Nepal [With Ranking]

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2 thoughts on “Nepal Investment Bank last 5 years total dividend is 196%; How much do you expect this year?

    • September 27, 2019 at 2:59 am
      Permalink

      10% cash dividend,10% bonus share dividend this year. Bonus share expected from the remaining premium amountas per issuance of f p o shares in the previous year.

      Reply

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