NBP pre-tax shows growth of 23 percent
KARACHI: National Bank of Pakistan Pre-tax profit showed a growth of 23% to stand at Rs. 22 billion from Rs 18 billion of the same period last year.
The Board of Directors of National Bank of Pakistan in their meeting held on October 28 approved the financial statements of the bank for the nine months period ended on September 30, 2015. Profit pre-provision, posted a growth of 35% for the nine months period and amounted to Rs 30.9 billion compared to Rs 22.8 billion of corresponding period last year.
Due to recording of prior year tax charge of Rs 2.4 billion, increase in current tax charge and reduction of compensation rate on determined refunds, the pre-tax profit growth was not translated into after tax profit growth as it marginally increased to Rs12.1 billion. Earnings per share are Rs 5.69 as against Rs 5.67 of the corresponding period last year. Despite reduction in interest rates, net interest income reflects a healthy increase of 22% and increased from Rs 29.8 billion in 3Q 2014 to Rs 36.4 billion in 3Q of 2015 due to increase in balance sheet size.
The bank recorded capital gain of Rs 10.2 billion from both the equity and fixed income markets which contributed in growth of 18% in non-interest income which amounted to Rs 26 billion, higher by Rs 3.9 billion. Provision charge is high from corresponding period mainly due to downgrading of existing non-performing portfolio.
Compared to September 2014, deposits increased by Rs 94 billion. The bank is strongly capitalized with capital and reserves of Rs 167 billion, which translates into break- up value per share of Rs 79/- per share. The bank is focusing on reducing the non-performing loans through restructuring and recoveries. Core Banking Application (CBA) rollout in all the branches is under implementation to utilize maximum benefit of automation and facilitating NBP customers with enhanced services. This year, NPB’s has converted 581 additional branches on CBA taking total branches on the new platform at 854 on September 30.