Business

NBP Reports 12.60% Increase in Profits During H1 2021

National Bank of Pakistan reported profit of Rs. 17 billion during the period of January to July 2021 as compared to Rs. 15.1 billion profit reported in the similar period of the last year, showing an increase of 12.60% year-on-year.

According to the financial results, the earning per share of the bank increased to Rs. 7.97 from 7.14.

The revenues decreased 2% from the prior-year period, primarily reflecting the impact of drop in the policy rate and normalization in market activity. Gross mark-up/interest income of the bank closed at Rs. 108 billion,which is 25.7% below, YoY.

Likewise, the interest/mark-up expense also dropped significantly by 37.4% to Rs. 60.6 billion. Consequently, net interest/mark-up income of the Bank stood at Rs. 47.4 billion, i.e. marginally 2.2% lower, YoY.

The given the subdued trade activity during most of period under review, non-mark-up / non-interest earning of the bank closed1.6% lower at Rs. 18 billion. Accordingly, total revenue of the bank closed 2.0% down YoY at Rs. 65.4 billion.

Despite inflationary pressures and higher operational costs amidst the pandemic, administrative costs remained well controlled and recorded a marginal increase of 3.7% YoY to close at Rs. 30.6 billion.

Proactively moving from ‘incurred’ to ‘expected’ credit loss model, the bank created adequate provision charge of Rs. 6.8 billion to make its balance sheet more resilient in the prevailing circumstances. Positively, provision charge for the period is 57% below the Rs. 15.6 billion provision charge in 1H’20.

The board also deliberated on the impact of COVID 19 pandemic and its specific implications for the banking industry in Pakistan. Being categorized as a systemically important bank in Pakistan, NBP has depicted strong resolve to serve its customers across the country despite facing significant operational challenges.

The bank is making progress on its strategy refresh across its consumer and institutional businesses for playing its systemically important role in the economy while maintaining a strong and resilient balance sheet to deliver performance for shareholders. The management is committed to modernising the Bank to achieve excellence in risk and control environment, business processes and service quality to clients.

For the year 2021 and beyond, the bank’s business strategy will continue to focus on financing and supporting underserved sectors including SME, Microfinance, Agriculture Finance and the PM’s Low-Cost Housing initiative on a priority basis.

Related posts
BusinessPakistan

Over 8 Million Tax Non-Filers Receive Notices from FBR

Federal Board of Revenue (FBR) has taken decisive action by issuing notifications to more than 8…
Read more
BusinessPakistan

Pakistan Railways Set to Digitize Locomotive Records within Two Months

Ministry of Railways Initiates Digital Transformation for Locomotive Records and Fuel Management…
Read more
Business

PIA Seeks Government Assistance with Rs15 Billion Loan Amid Liquidity Crisis

ISLAMABAD: Pakistan International Airlines (PIA) sent an SOS (Save Our Ship) to the State Bank of…
Read more
Newsletter
Become a Trendsetter
Sign up for Davenport’s Daily Digest and get the best of Davenport, tailored for you.

Leave a Reply

Your email address will not be published. Required fields are marked *