ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Nepal Investment Bank's annualizedNet Income for the quarter that ended in Jul. 2025 was NPR9,091 Mil.
Nepal Investment Bank's average Total Assets over the quarter that ended in Jul. 2025 was NPR559,803 Mil. Therefore, Nepal Investment Bank's annualized ROA % for the quarter that ended in Jul. 2025 was 1.62%.
The historical rank and industry rank for Nepal Investment Bank's ROA % or its related term are showing as below:
XNEP:NIB'
s ROA % Range Over the Past 10 Years
Min: 0.9 Med: 1.67 Max: 2.78
Current: 1.29
During the past 13 years, Nepal Investment Bank's highest ROA % was 2.78%. The lowest was 0.90%. And the median was 1.67%.
XNEP:NIB's ROA % is not ranked
in the Banks industry.
Industry Median: 0.98
vs XNEP:NIB: 1.29
Nepal Investment Bank (XNEP:NIB) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Jul. 2025) net income data. The Revenue data used here is four times the quarterly (Jul. 2025) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Banks - Regional subindustry, Nepal Investment Bank's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Nepal Investment Bank ROA % vs Banks Industry
For the Banks industry and Financial Services sector, Nepal Investment Bank's ROA % distribution charts can be found below:
* The bar in red indicates where Nepal Investment Bank's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Jul. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Nepal Investment Bank (XNEP:NIB) has a ROA % of 1.62% as of Jul. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Nepal Investment Bank and its competitors. This is near median its historical median of 1.67. Over the past decade, Nepal Investment Bank's ROA % has ranged from 0.90 to 2.78.
Is Nepal Investment Bank's ROA % too high?
Nepal Investment Bank's current ROA % of 1.62% is near median its 10-year median of 1.67. Over the past 10 years, this metric has ranged from a low of 0.90 to a high of 2.78. The Banks industry median ROA % is 0.98. Nepal Investment Bank's value of 1.62% is 65.3% above this industry median. Overall, Nepal Investment Bank has a GF Score™ of 25/100, reflecting its overall financial health beyond just this single metric.
How does Nepal Investment Bank's ROA % compare to competitors?
Nepal Investment Bank's ROA % of 1.62% can be compared against companies in the Banks industry. The industry median ROA % is 0.98. Nepal Investment Bank's value of 1.62% is 65.3% above this benchmark. Historically, Nepal Investment Bank's own ROA % has ranged from 0.90 to 2.78 over the past decade. While the company's 10-year median is 1.67 vs. the industry median of 0.98, Nepal Investment Bank has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Banks company?
The median ROA % among Banks companies is 0.98, based on 1,532 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nepal Investment Bank's current ROA % of 1.62% is 65.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Nepal Investment Bank and its competitors. For the Banks industry, the median ROA % is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nepal Investment Bank's current ROA % is 1.62%, which is near median its own 10-year median of 1.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nepal Investment Bank stock overvalued right now?
Nepal Investment Bank (XNEP:NIB) has a current ROA % of 1.62%. The stock's GF Value™ is NPR320.00, compared to a current price of NPR251.00 — trading 21.6% below its estimated fair value. The current ROA % is 1.62%, which is near median its 10-year median of 1.67 and 65.3% above the Banks industry median of 0.98. Nepal Investment Bank's overall GF Score™ is 25/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Nepal Investment Bank (XNEP:NIB), the current ROA % is 1.62% as of Jul. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Nepal Investment Bank (XNEP:NIB) Overvalued in 2026?
Based on GuruFocus' analysis, Nepal Investment Bank stock appears to be undervalued.
The current stock price of NPR251.00 is trading 21.6% below its estimated GF Value™ of NPR320.00.
Key valuation signals for XNEP:NIB:
ROA %: 1.62% (near median its 10-year median of 1.67)
GF Value™: NPR320.00 vs. price of NPR251.00 (21.6% below fair value)
No single metric tells the full story. See the XNEP:NIB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nepal Investment Bank Ltd is in the business of retail and corporate banking products and services. The bank's business segments are engaged in banking operations, treasury functions, trade finance business, remittance business and card operations. The bank operates in Nepal.
25GF Score
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