NMB BankXNEP:NMB -1.01%78 ROE % is 12.70% as of Apr. 2026, which is 3% below its 10-year median of 13.09. GuruFocus rates XNEP:NMB with a GF Score™ of 78/100 and a GF Value™ of NPR241.75 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,525 Banks companies, NMB Bank ranks better than 58.62% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. NMB Bank's annualized net income for the quarter that ended in Apr. 2026 was NPR4,510 Mil. NMB Bank's average Total Stockholders Equity over the quarter that ended in Apr. 2026 was NPR35,524 Mil. Therefore, NMB Bank's annualized ROE % for the quarter that ended in Apr. 2026 was 12.70%.
The historical rank and industry rank for NMB Bank's ROE % or its related term are showing as below:
XNEP:NMB'
s ROE % Range Over the Past 10 Years
Min: 7.73 Med: 13.09 Max: 21.81
Current: 11.4
During the past 11 years, NMB Bank's highest ROE % was 21.81%. The lowest was 7.73%. And the median was 13.09%.
XNEP:NMB's ROE % is ranked better than 58.62% of 1525
companies
in the Banks industry
Industry Median: 10.22
vs XNEP:NMB: 11.40
NMB Bank (XNEP:NMB) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
NMB Bank ROE % Related Terms
NMB Bank ROE % Historical Data
* Premium members only.
The historical data trend for NMB Bank's ROE % can be seen below:
* 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, NMB Bank's ROE %, along with its competitors' market caps and ROE % 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.
NMB Bank ROE % vs Banks Industry
For the Banks industry and Financial Services sector, NMB Bank's ROE % distribution charts can be found below:
* The bar in red indicates where NMB Bank's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
ROE % is displayed in the 30-year financial page.
NMB Bank (XNEP:NMB) has a ROE % of 12.70% as of Apr. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on NMB Bank and its competitors. This is near median its historical median of 13.09. Over the past decade, NMB Bank's ROE % has ranged from 7.73 to 21.81. According to the industry distribution chart, NMB Bank ranks #631 out of 1525 companies in the Banks industry, placing it in the top 41.4%.
Is NMB Bank's ROE % too high?
NMB Bank's current ROE % of 12.70% is near median its 10-year median of 13.09. Over the past 10 years, this metric has ranged from a low of 7.73 to a high of 21.81. The Banks industry median ROE % is 10.22. NMB Bank's value of 12.70% is 24.3% above this industry median. Based on the distribution chart, NMB Bank ranks #631 out of 1525 companies in the Banks industry, which is above the industry midpoint. Overall, NMB Bank has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does NMB Bank's ROE % compare to competitors?
According to the Banks industry distribution chart, NMB Bank ranks #631 out of 1525 companies for ROE %. This puts NMB Bank in the upper half of its industry. The industry median ROE % is 10.22. NMB Bank's value of 12.70% is 24.3% above this benchmark. Historically, NMB Bank's own ROE % has ranged from 7.73 to 21.81 over the past decade. While the company's 10-year median is 13.09 vs. the industry median of 10.22, NMB 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 ROE % for a Banks company?
The median ROE % among Banks companies is 10.22, based on 1,525 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NMB Bank's current ROE % of 12.70% is 24.3% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on NMB Bank and its competitors. For the Banks industry, the median ROE % is 10.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NMB Bank's current ROE % is 12.70%, which is near median its own 10-year median of 13.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NMB Bank stock overvalued right now?
Based on GuruFocus' analysis, NMB Bank (XNEP:NMB) is currently considered Fairly Valued. The stock's GF Value™ is NPR241.75, compared to a current price of NPR235.50 — trading 2.6% below its estimated fair value. The current ROE % is 12.70%, which is near median its 10-year median of 13.09 and 24.3% above the Banks industry median of 10.22. NMB Bank's overall GF Score™ is 78/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For NMB Bank (XNEP:NMB), the current ROE % is 12.70% as of Apr. 2026. 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 NMB Bank (XNEP:NMB) Overvalued in 2026?
Based on GuruFocus' analysis, NMB Bank stock appears to be undervalued.
The current stock price of NPR235.50 is trading 2.6% below its estimated GF Value™ of NPR241.75.
GuruFocus considers NMB Bank to be Fairly Valued.
Key valuation signals for XNEP:NMB:
ROE %: 12.70% (near median its 10-year median of 13.09)
GF Value™: NPR241.75 vs. price of NPR235.50 (2.6% below fair value)
Industry Position: 24.3% above the Banks median (#631 of 1525)
No single metric tells the full story. See the XNEP:NMB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NMB Bank Ltd provides banking products and services in Nepal. It carries out commercial banking activities, offering various banking-related products and services such as accounts and deposits, loans, cards, remittances, insurances, priority banking, locker facility, and others. Along with its subsidiaries, the company operates in the following segments: Retail Banking, SME, Corporate, Treasury, Deprived, and Others. Maximum revenue is derived from its Corporate segment, which serves a diverse range of clients, ranging from small to mid-sized local businesses with a few million in revenues to large conglomerates.
78GF Score
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