NMB Bank Limited Established in 1996 has led to its development as a leading commercial financial institution in Nepal. The strategic joint venture between Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) and NMB Bank provides 13.69% ownership which enables the bank to maintain its position as an excellent provider in the banking sector. The bank has earned various awards such as 'Bank of the Year' from The Banker when Financial Times published its London edition in 2017 and 2018.
NMB Bank Limited Dividend History
During its operation NMB Bank established a solid history of providing dividend payments to its shareholders. Investigating dividend distributions shows how well the bank performs financially while demonstrating its dedication to maximizing shareholder worth. NMB Bank has established the following historical dividend data as shown below:
| Fiscal Year | Bonus Share (%) | Cash Dividend (%) | Total Dividend (%) |
|---|---|---|---|
| 2060/61 | 0 | 30 | 30 |
| 2061/62 | 31.58 | 0 | 31.58 |
| 2062/63 | 24.29 | 0 | 24.29 |
| 2063/64 | 0 | 30 | 30 |
| 2064/65 | 10 | 0.53 | 10.53 |
| 2065/66 | 0 | 0 | 0 |
| 2066/67 | 10 | 10.53 | 20.53 |
| 2067/68 | 0 | 9 | 9 |
| 2068/69 | 0 | 0 | 0 |
| 2069/70 | 0 | 10 | 10 |
| 2070/71 | 20 | 1.05 | 21.05 |
| 2071/72 | 8 | 0.42 | 8.42 |
| 2072/73 | 19 | 1 | 20 |
| 2073/74 | 15 | 0.79 | 15.79 |
| 2074/75 | 10 | 20 | 30 |
| 2075/76 | 21 | 14 | 35 |
| 2076/77 | 13 | 3.2 | 16.2 |
| 2077/78 | 12.5 | 3.3 | 15.8 |
| 2078/79 | 0 | 8.25 | 8.25 |
| 2079/80 | 0 | 0 | 0 |
| 2080/81 | 0 | 0 | 0 |
The bank did not distribute dividends during both the fiscal years 2079/80 and 2080/81.
NMB Bank strives to deliver dividend returns to its shareholders while adjusting payments based on its financial performance and strategic direction throughout different years.
NMB Bank's Price History
Various internal and external elements and economic conditions as well as market sentiments and financial outcome of NMB Bank influence its stock price fluctuations. The closing price of NMB Bank reached Rs. 250.20 at December 8, 2024. As recorded on November 30, 2023 the stock registered at Rs. 204.30. The bank stock price fluctuations during this period showed positive developments according to this data.
Factors Influencing Dividend Decisions
Multiple elements have shaped NMB Bank's distribution practices of dividends during recent times.
- The bank needs approval from both the Nepal Rastra Bank and its Annual General Meeting to execute dividend proposals. The decision about non-dividend payment for FY 2080/81 required regulatory approval from the Annual General Meeting as well as the Nepal Rastra Bank.
- The bank's financial performance stands directly linked to the ability of paying dividends to its stockholders. Profit reductions as well as strategic reinvestment plans may result in zero dividend distribution.
- Profitability is impacted by macroeconomic conditions during economic downturns and financial crises which shapes dividend policies of the bank
NMB Bank Limited operates as a resilient financial institution with forward-looking principles throughout the Nepalese market. Shareholder value distribution through dividends at NMB Bank demonstrates sound financial performance and strategic development ensuring. A thorough evaluation of present-year dividend policies enables a better understanding regarding dividend suspension in recent periods. The financial landscape of Nepal will benefit from NMB Bank as it dedicates itself to excellence for stakeholders while creating value in the evolving industry.