Nabil bank Vs NIC Asia: Which is better to invest in Nepal?

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Nabil bank Vs NIC Asia for Investment
Nabil bank Vs NIC Asia for Investment

It is difficult to say which of Nabil Bank Vs NIC Asia is a better investment in Nepal because both are well-established and respected institutions in the country. It is important for investors to conduct their own due diligence and consider a variety of factors before making an investment decision.

However, in this article, we have tried to make some comparisons between Nabil Bank Vs Nic Asia bank on the basis of some financial indicators to help investors in Nepal choose the stocks for long-term investment between these two.

Some factors to consider when deciding between Nabil Bank and NIC Asia Bank include:

  1. Financial performance: Both Nabil Bank and NIC Asia have strong financial performances and are considered to be financially stable banks. Investors should review the financial statements of both banks to get a better understanding of their financial health.
  2. Product offerings: Both banks provide a wide range of banking and financial products and services, such as savings and current accounts, loans, credit cards, and investment opportunities. Investors should consider each bank's products and services to determine which one best meets their needs.
  3. Customer service: Both Nabil Bank and NIC Asia place a high value on customer service and provide a variety of digital and in-person banking services to their clients. Investors should consider each bank's level of customer service and select the one that best meets their needs.
  4. Market outlook: Nepal's economic and market conditions can also have an impact on the performance of these banks. Investors should consider the overall market outlook and how it may impact these banks' performance.
Finally, which bank to invest in will be determined by an investor's personal financial goals and risk tolerance. Before making an investment decision, investors should carefully consider their options and consult with a financial advisor.

Let's compare the dividend history of these two commercial banks:

NABIL- Dividend History

NICA Dividend History

Fiscal Year

Cash Dividend

Bonus Share

Total

078-079

11.50%

18.50%

30.00%

077-078

4.40%

33.60%

38.00%

076-077

1.76%

33.50%

35.26%

075-076

22.00%

12.00%

34.00%

074-075

22.00%

12.00%

34.00%

073-074

18.00%

30.00%

48.00%

072-073

15.00%

30.00%

45.00%

071-072

6.84%

30.00%

36.84%

070-071

45.00%

20.00%

65.00%

069-070

40.00%

25.00%

65.00%

Fiscal Year

Cash Dividend

Bonus Share

Total Dividend

076-077

1.00%

19.00%

20.00%

075-076

11.05%

10.00%

21.05%

074-075

0.53%

10.00%

10.53%

073-074

1.05%

20.00%

21.05%

072-073

1.37%

26.00%

27.37%

071-072

2.05%

39.00%

41.05%

070-071

15.00%

15.00%

30.00%

069-070

20.00%

0.00%

20.00%

068-069

25.00%

0.00%

25.00%

067-068

20.00%

0.00%

20.00%


Let's compare the fundamental ratios of these banks:

IndicatorsNABILNICA
Shares Outstanding270569971.7115640053.7
Market Capitalization19453980961691367206428
EPS23.2360.77
P/E30.9517.9
P/B3.383.41
Book Value212.47231.63
PEG3.620.72
ROE0.12970.2103
ROA0.01560.0143
1 Year Yield-0.3545-0.0572
Dividend Yield0.04170

Let us study the statistical comparison table for Nabil Bank vs NIC Asia Bank below for further clarification.

StatisticsNABILNICA
Number of Years1010
Bonus Shares %244.6139
Mean (Average) Bonus24.4613.9
Median Bonus27.512.5
Mode30, appeared 3 times0, appeared 3 times
Highest Bonus Share33.639
Lowest Bonus Share120
Range21.639
Geometric Mean22.946962580
Standard Deviation7.89648022912.04533105
Variance62.3544145.09

The Average Share Dividend of NABIL is 24.46% whereas the Average Share Dividend of NICA is 13.9% only which is far less than that of NABIL. Similarly, the variance of Bonus Shares for NABIL is 62.3544 which is less than that of NICA, i.e 145.09. This shows that NABIL is more consistent in terms of average bonus shares than NICA (Less Variance = More Consistency).

If you are planning to invest as per the historical analysis, then it is better to go for NABIL. However, NICA is not a weak company to doubt its future potential.

Information about NABIL Bank

Nabil Bank Limited is a commercial bank in Nepal that offers its customers a range of banking and financial services. The bank was established in 1984 and is headquartered in Kathmandu, Nepal.

Nabil Bank Limited has a network of branches and ATMs throughout Nepal and offers a range of products and services, including savings and current accounts, loans, credit cards, and foreign exchange services. The bank also provides its customers with online banking, mobile banking, and other digital services.

In addition to its banking services, Nabil Bank Limited is also involved in investment banking, insurance, and other financial services. The bank strongly focuses on customer service and is committed to providing its customers with high-quality products and services.

Nabil Bank Limited is a public company; its shares are listed on the Nepal Stock Exchange (Nepse). The bank is one of Nepal's largest and most well-established banks and is known for its stability and strong financial performance.

Information about NIC Asia Bank

NIC Asia Bank is a commercial bank in Nepal that offers a range of banking and financial services to its customers. The bank was established in 1993 and is headquartered in Kathmandu, Nepal.

NIC Asia Bank has a network of branches and ATMs throughout Nepal and offers a range of products and services including savings and current accounts, loans, credit cards, and foreign exchange services. The bank also offers online banking, mobile banking, and other digital services to its customers.

In addition to its banking services, NIC Asia Bank is also involved in investment banking, insurance, and other financial services. The bank has a strong focus on customer service and is committed to providing its customers with high-quality products and services.

NIC Asia Bank is a public company and its shares are listed on the Nepal Stock Exchange (Nepse). The bank is one of the largest and most well-established banks in Nepal and is known for its stability and strong financial performance.

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