Retained Earnings

Retained earnings link the profit and loss account with the balance sheet. Each year:

Closing retained earnings = Opening retained earnings + Net profit (or − loss) − Dividends − Transfers to reserves ± other adjustments.

Retained earnings are part of shareholders' equity and, for banks, part of core (Tier 1) capital. They are an internal, low-cost source of capital: by retaining profits, a bank can grow its loan book and meet capital adequacy requirements without issuing new shares.

For Nepali BFIs, profit is first appropriated to statutory funds such as the general reserve, exchange fluctuation fund and regulatory reserve as required by law and NRB directives, before the remaining amount is available for distribution. Amounts transferred to the regulatory reserve (for example for accrued interest receivable or certain investments) cannot be distributed as dividends.

A company with accumulated losses has negative retained earnings, which reduces book value and may restrict dividends.

सञ्चित नाफाले नाफा-नोक्सान हिसाबलाई वासलातसँग जोड्छ:

अन्तिम सञ्चित नाफा = सुरुको सञ्चित नाफा + खुद नाफा − लाभांश − जगेडामा सारिएको रकम ± अन्य समायोजन।

यो शेयरधनी कोष र बैंकका लागि प्राथमिक (Tier 1) पुँजीको अंश हो। नाफा सञ्चित गरेर बैंकले नयाँ शेयर जारी नगरी कर्जा विस्तार र पुँजी पर्याप्तता कायम गर्न सक्छ। नेपालका बैंक तथा वित्तीय संस्थाले कानुन र नेपाल राष्ट्र बैंकको निर्देशनअनुसार पहिले साधारण जगेडा, विनिमय घटबढ कोष र नियामकीय जगेडामा रकम छुट्याउनुपर्छ; नियामकीय जगेडाको रकम लाभांशमा बाँड्न मिल्दैन।