Tangal, P.O.

B ox 21128, Kathmandu, Tel; 01-4443077, SWIFT: KMB LNPKA

Interim Financial Statements of the FY 2079/80
Condensed Consolidated Statement of Financial Position
As at Second Quarter (14 th January 2023) of the Fiscal Year 2022/23
Amount in NPR

Group Bank
Particulars
Immediate Previous Year Imme diate Pre vious
This Q uarter Ending Ending This Q uarter Ending Ye ar Ending
Asse ts
Cash and Cash Equivalents 20,587,480,119 17,724,374,394 20,579,437,996 17,609,892,391
Due from Nepal Rastra Bank 11,012,266,600 5,475,310,681 11,012,266,600 5,475,310,681
Placement with Bank and Financial Institutions 2,763,052,550 1,949,476,858 2,763,052,550 1,949,476,858
Derivative Financial Instruments 26,575,469 - 26,575,469 -
Other Trading Assets - - - -
Loans and Advances to BFIs 9,469,486,575 5,846,262,217 9,469,486,575 5,846,262,217
Loans and Advances to Customers 275,761,355,553 152,562,929,781 275,761,355,553 152,562,929,781
Investment Securities 39,923,186,581 23,196,679,434 39,557,953,696 22,815,085,583
Current T ax Assets 399,637,528 457,139,696 399,790,480 454,701,292
Investment in Subsidiaries - - 600,000,000 420,000,000
Investment in Associates 587,594,038 504,062,448 155,017,596 185,017,596
Investment Property 1,135,157,165 144,491,994 1,135,157,165 144,491,994
Property and Equipment 2,616,889,093 1,194,497,624 2,602,345,177 1,179,754,479
Goodwill and Intangible Assets 341,966,166 163,212,113 340,464,613 161,441,291
Deferred T ax Assets - - - -
Other Assets 6,558,059,097 3,320,846,636 6,526,060,019 3,304,074,228
Total Assets 371,182,706,534 212,539,283,876 370,928,963,489 212,108,438,392

Liabilities
Due to Bank and Financial Institutions 5,306,295,767 6,028,947,435 5,982,374,311 6,194,529,106
Due to Nepal Rastra Bank 7,715,273,000 1,345,585,620 7,715,273,000 1,345,585,620
Derivative Financial Instruments - 39,334,195 - 39,334,195
Deposits from Customers 299,691,753,456 176,767,665,556 299,691,753,456 176,767,665,556
Borrowings 1,314,500,214 - 1,314,500,214 -
Current T ax Liabilities - - - -
Provisions - 2,500,000 - 2,500,000
Deferred T ax Liabilities 140,898,549 71,471,646 140,898,549 75,208,206
Other Liabilities 8,952,067,672 3,940,045,081 8,491,492,004 3,685,702,222
Debt Securities Issued 8,995,797,489 2,995,797,489 8,995,797,489 2,995,797,489
Subordinated Liabilities - - - -
Total Liabilities 332,116,586,147 191,191,347,022 332,332,089,024 191,106,322,395
Equity
Share Capital 26,225,861,340 14,711,183,326 26,225,861,340 14,711,183,326
Share Premium 88,804,041 88,804,041 88,804,041 88,804,041
Retained Earnings 684,905,194 2,212,774,212 224,441,337 1,872,567,427
Reserves 12,066,549,811 4,335,175,275 12,057,767,747 4,329,561,203
Total Equity Attributable to Equity Holders 39,066,120,387 21,347,936,854 38,596,874,465 21,002,115,997
Non-Controlling Interest - - - -
Total Equity 39,066,120,387 21,347,936,854 38,596,874,465 21,002,115,997
Total Liabilities and Equity 371,182,706,534 212,539,283,876 370,928,963,489 212,108,438,392
 Condensed Consolidated Statement of Profit or Loss
For the Second Quarter Ended (14 January 2023) of the Fiscal Year 2022/23
Amount in NPR
Group Bank
Current Year Previous Year Curre nt Ye ar Pre vious Ye ar
Particulars
This Q uarter Upto this Q uarter This Q uarter Upto this This Q uarter Upto this Q uarter This Q uarter Upto this
(YTD) Q uarter (YTD) (YTD) Q uarte r (YTD)
Interest income 6,884,176,645 12,819,563,343 4,148,084,416 7,897,870,178 6,867,139,273 12,790,892,702 4,140,237,064 7,885,360,495
Interest expense 4,599,377,586 8,550,855,507 2,803,666,306 5,261,841,510 4,598,755,986 8,550,248,358 2,803,666,306 5,261,855,962
Net inte rest income 2,284,799,059 4,268,707,836 1,344,418,111 2,636,028,667 2,268,383,287 4,240,644,344 1,336,570,758 2,623,504,533
Fee and commission income 264,794,447 570,781,388 175,275,151 436,837,050 264,794,447 570,781,388 175,275,151 436,837,050
Fee and commission expense 53,585,012 93,825,607 18,829,105 37,562,010 53,585,012 93,825,607 18,829,105 37,562,010
Net fe e and commission income 211,209,435 476,955,781 156,446,046 399,275,040 211,209,435 476,955,781 156,446,046 399,275,040
Net inte rest, fe e and commission Income 2,496,008,494 4,745,663,617 1,500,864,157 3,035,303,707 2,479,592,722 4,717,600,125 1,493,016,804 3,022,779,573
Net trading income 86,598,693 141,982,461 100,125,128 206,497,761 86,598,693 141,982,461 100,125,128 206,497,761
Other operating income 67,419,160 282,429,847 124,013,423 395,260,483 44,956,108 133,804,483 81,601,640 313,614,647
Total ope rating income 2,650,026,347 5,170,075,925 1,725,002,708 3,637,061,951 2,611,147,522 4,993,387,069 1,674,743,573 3,542,891,981
impairment charge/ (reversal) for Loans and other losses 1,505,324,685 1,434,657,770 189,482,027 322,254,579 1,505,324,685 1,434,657,770 189,482,027 322,254,579
Net ope rating income 1,144,701,663 3,735,418,155 1,535,520,681 3,314,807,372 1,105,822,838 3,558,729,299 1,485,261,546 3,220,637,402
O perating e xpe nse -
Personnel expenses 651,072,201 1,378,026,621 588,422,477 1,281,138,840 644,192,579 1,364,678,365 583,508,038 1,271,246,591
Other operating expenses 267,038,207 481,446,421 235,415,186 446,975,380 263,113,975 473,221,714 232,534,377 440,306,601
Depreciation & Amortization 57,084,364 148,653,208 70,332,934 141,168,094 56,468,499 147,436,605 69,851,661 140,233,541
O perating Profit 169,506,891 1,727,291,904 641,350,084 1,445,525,056 142,047,785 1,573,392,615 599,367,470 1,368,850,669
Non-operating income 1,387,875 1,976,657 848,217 4,810,737 1,387,875 1,976,657 848,217 4,810,737
Non-operating expense 4,937,135 6,214,489 - - 4,937,135 6,214,489 - -
Profit be fore income tax 165,957,631 1,723,054,072 642,198,301 1,450,335,793 138,498,525 1,569,154,783 600,215,687 1,373,661,406
Income tax expense 136,124,691 569,915,571 192,951,070 427,528,176 127,886,959 557,083,837 189,597,427 421,923,223
Current T ax 136,124,691 569,915,571 192,951,070 427,528,176 127,886,959 557,083,837 189,597,427 421,923,223
Deferred T ax - - - - - - - -
Profit/(loss) for the pe riod 29,832,940 1,153,138,502 449,247,231 1,022,807,617 10,611,565 1,012,070,946 410,618,260 951,738,183
Profit of (then NCC Bank till16 Poush 2079 before Merger) - 518,636,126 - - - 518,636,126 - -
Total Profit for the pe riod 29,832,940 1,671,774,628 449,247,231 1,022,807,617 10,611,565 1,530,707,072 410,618,260 951,738,183
Conde nsed Consolidated Statement of Comprehensive income
Profit/(loss) for the pe riod 29,832,940 1,671,774,628 449,247,231 1,022,807,617 10,611,565 1,530,707,072 410,618,260 951,738,183
Other Comprehensive income 96,854,178 66,582,981 (21,252,003) (223,918,225) 96,854,178 66,582,981 (21,252,003) (223,918,225)
Total Compre hensive income for the period 126,687,118 1,738,357,609 427,995,228 798,889,393 107,465,744 1,597,290,053 389,366,256 727,819,958
Basic earnings per share 12.74 13.91 11.67 12.94
Diluted earnings per share 12.74 13.91 11.67 12.94
Profit attributable to:
Equity holde rs of the Bank 126,687,118 1,738,357,609 427,995,228 798,889,393 107,465,744 1,597,290,053 389,366,256 727,819,958
Non-controlling interest - - - - - - -
 Statement of Distributable Profit or Loss
For the Quarter end Poush 2079
Amount in NPR
Opening Retained Earning 32,513,429
Opening Retained Earning – (then NCC) 1,422,900
Total Opening 33,936,329
Net Profit for the period end Poush 2079 quarter 1,530,707,072
1. Appropriations
1.1 Profit required to be appropriated to statutory reserve
a. General Reserve (306,141,414)
b. Capital Redemption Reserve (166,666,667)
c. Exchange Fluctuation Fund (3,841,233)
d. Corporate Social Responsibility Fund (9,262,707)
e. Employees Training Fund (14,420,797)
f. Other -

1.2 Profit required to be transfer to Regulatory Reserve (839,869,247)

a. Transfer to Regulatory Reserve (848,014,977)
b. Transfer from Regulatory Reserve 8,145,730
Total Distributable Profit / (Loss) 224,441,337
 Ratios as per NRB
Group Bank

Previous Year Previous Year

Current Year Current Year
Corresponding Corresponding
Particulars
Upto Upto Upto Upto
This this This this This this This this
Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
(YTD) (YTD) (YTD) (YTD)
Capital fund to RWA 12.73% 12.14% 12.73% 12.14%
Non-performing loan (NPL) to total 3.15% 1.06% 3.15% 1.06%
loan
Total loan loss provision to Total NPL 104.28% 201.10% 104.28% 201.10%
Cost of Funds 9.05% 5.98% 9.05% 5.98%
Credit to Deposit Ratio (FTQ) 89.58% 95.55% 89.58% 95.55%
Base Rate (FTM) 11.73% 8.93% 11.73% 8.93%
Interest Rate Spread (FTM) 4.42% 3.37% 4.42% 3.37%

Notes to the Interim Financial Statements

1. Above f igures are prepared in accordance with Nepal Financial Reporting Standards , including the carve-outs as issued by the Institute of Chartered Accountants of
Nepal; subject to change upon otherwise directions of Statutory Auditor and/or Regulatory Authorities.
2. G roup represents the B ank and its wholly owned subsidiary Kumari Capital Ltd and KB L Securities Ltd; National Microf inance B i ttiya Sanstha Limited, First
Microf inance Laghu B ittiya Sanstha Ltd, Mero Microf inance B ittiya Sanstha Ltd, G eneral Insurance Co. Ltd, Aviyan Laghubitta B ittiya Sanstha Ltd and Solar Farm
Pvt. Ltd as Associates.
3. The NFRS reporting has been complied by adopting appropriate accounting judgment, those having po tential material impact on the f inancial statements and had made
appropriate judgment in making accounting estimates.
4. Loan and Advances include interest receivables and are pres ented net of impairment charges where impairment has been computed as higher of amount derived as per
the norms prescribed by Nepal Rastra B ank and as per para 63 of NAS 39 whichever is higher according to the carve out issued by Institute of Chartered Accountants of
Nepal (ICAN).
5. Loan Administration Fees that are integral part of ef f ective interest rate (EIR) is treated immaterial and not considered while calculating the Ef f ective Interest Rate
6. Personnel Expenses include employment bonus provision calculated at 10 percent of prof it and amortization of prepayment amoun t of subsidized loans provided to the
employees of the bank.
7. Interest income on loans and advances to customers are shown on accrual basis .
8. Figures have been regrouped and rearranged wherever necessary.
9. The detail Interim report has been published in the B ank’s website www.kumaribank.com

Publication of Information as Required by Securities Registration and Issuance Regulation 2073 (Related to Sub Rule (1) of Rule 26)
1. Major Financial Indicators (annualized fig.)
1. Earnings per Share –11.67 2. Market Price per Share –Rs.190
3. Price Earnings Ratio (P/E ratio) –16.28 4. Net Worth per Share – Rs.147.17
5. Liquidity Ratio -20.09

2. Management Analysis:
 The bank has been continuously pioneering in introducing new products and re-innovating its existing products and services as per the
market needs.
 The bank has been focusing on cost management, diversified investments, technological up gradation, optimu m utilization of resources
and automation of work.
 The deposits from customers have increased by 69.54% and loans & advances to BFIs and Customers in total have increased by 80.06%
in this quarter with reference to the last year due to merger with then NCC Bank.
 The bank has formulated strategic plan to widen the branch network, along with broadening the electronic banking and digitiza tion of the
bank transactions. Currently, the bank has branch network of 304 branches all over the country with 47 extension counters; also the bank
has currently setup 62 Branchless Banking units (BLBs).

3. Details Regarding Legal Actions

a. Case filed by or to Kumari Bank Ltd. during the quarter –
 Apart from the case related to credit recovery in the normal course of business operation, no other cases were file by or to Kumari Bank
Ltd. during the quarter.
b. Case filed by or against the promoter or director of Kumari Bank Ltd. regarding disobedience of prevailing law or commission of criminal
offence –
 No such information has been received
c. Case filed against any Promoter or Director of Kumari Bank Ltd. regarding commission of financial crime –
 No such information has been received
4. Analysis of Share Transaction of Organized Institutions
a. Management’s view on share transactions of Kumari Bank Ltd. at Securities Market:
Since the price of the stock is determined by open market operation, the management’s view is neutral in this regard.
b. Maximum, minimum and closing price of shares including total transactions and transacted days d uring the quarter
Max. Price - Rs. 198.90 Min. Price - Rs. 176.5 Closing Price - Rs. 190 Total no. of Transactions – 4,016 Transacted Day - 19 days

5. Problems and Challenges

Internal
a. Attaining reasonable level of cost of operation.
b. Retention of qualified and trained human resources.
c. Improving operational efficiencies to minimize inherent risks.
External
a. Improving overhead efficiency.
b. Intense competition from banks and financial institutions with increasing capital and thereby business capacity.
c. Challenge to pass on cost growth to revenue stream.
d. Post Pandemic situation is causing concerns and economic hardship for consumers, businesses and communities across the globe and
thereby affecting overall business of banking.
Strategy to Overcome Problems & Challenges
a. Continually renovating and diversifying the product & services to meet the changing need of the customers.
b. Utilizing the assets in as much as high yield and low risk investment sector.
c. Proper consolidation of business and work around solutions for generation of positive synergy post-merger.
d. Proper Risk Management on operational, market, business and other risk segments.
e. Better cost management practices with high focus on operational efficiency through innovation and process reengineer ing.
f. Understanding the expectations and motivating factors of employees in order to retain them; providing intense training for en hancement
of skills and knowledge.
g. Re-pricing of its interest sensitive assets and liabilities as per liquidity position of th e market.
h. Digitalization of banking systems, s timulating and educating employees working on online platforms to make every banking service
available online.

6. Corporate Governance
In order to increase the standard of corporate governance, following actions has been initiated by the bank:
a. The Board of Directors of the bank is the top most body responsible and accountable to ensure that the bank has embraced supe rior
standard of corporate governance. Further, various sub-committees of the Board including the Audit Committee, continuously review the
activities of various areas of the Bank and provide direction and support where necessary.
b. Clear demarcation has been made in the Bank between various conflicting areas of the Bank like Credit, Risk and Operations, with each
unit being headed by senior personnel directly accountable to the CEO.
c. Management Committee chaired by the CEO and comprising of heads of key units of the bank, meets on a regular basis to assess the
performance of the Bank and take key decisions . Similarly, committees like Asset Liability Committee, Risk Management Committee,
and Recovery Committee etc meet at regular intervals to critically review performance and initiate proactive actions.

7. Particulars relating to Annexure – 16 of Securities Registration and Issuance Regulation, 2073

 Joint operation of Kumari Bank Ltd (KBL) and Nepal Credit and Commerce Bank (NCCB) has commenced under the name
'Kumari Bank Ltd' following merger of the two commercial banks on 1st January, 2023.
 Appointment of CEO Mr. Ramesh Raj Aryal effective from 1st January, 2023.

8. Declaration by CEO
I hereby declare that the data and information provided in this report is true, complete, and factual to the extent of my kno wledge. No
attempt has been made to misguide the investors. I personally take the responsibility and accountability regarding the truthfulness of the
information provided in the report as of quarter end.