NBP records 23pc growth in profit
KARACHI—The Board of Directors of National Bank of Pakistan, in their meeting held on Thursday, approved the financial statements of the bank for the quarter ended March 31, 2016. The bank, for the three month period ended March 31, 2016 recorded a pre-tax profit of Rs 6.2 billion 23% higher than Rs 5.0 billion for the corresponding period of 2015. Similarly, the after-tax profit also remained 23% higher at Rs 4.0 billion compared to Rs 3.3 billion for the quarter ended March 31, 2015. This translates into Earnings per share of Rs 1.90 for March 2016 as against Rs.1.54 for quarter ended March 31, 2015. Pre- tax and after tax return on equity stand at 22.6% and 14.8% respectively; whereas pretax and after tax return on assets are at 1.5% and 1% respectively.
Despite a general reduction in the discount rate during the year, the net interest income increased from Rs 10.6 billion in Q1-2015 to Rs 12.0 billion in Q1-2016 reflecting an increase of 14%. The provision charge against the NPL was significantly lower at Rs 1.06 billion compared to Rs 3.05 billion in Q1-2015. Non markup / interest income decreased by 23% to Rs 6.5 billion compared Rs 8.5 billion for the Q1, 2015.
The drop is mainly attributed to the lower gains generated from sale of securities. As compared to Rs 1,136 billion as of March 2015, the Bank’s deposits increased by 12% to Rs 1,274 billion as of March 31, 2016. The Bank’s branch network consists of 1403 domestic branches, including 82 branches dedicated for Islamic banking. ATM network has now increased to 1,150+ machines, with 6 ATM centres. With deployment of Core Banking Application, the bank’s has now become more capable of launching technologybased products like online / mobile banking, cash management, cards etc.