Bank profit stands at Rs 16.2 bil­lion af­ter tax

The Pak Banker - - NATIONAL - Staff Re­porter

Na­tional Bank of Pak­istan held its 64th An­nual Gen­eral Meet­ing was in­formed at Karachi on Thurs­day that To­tal as­sets of the bank in­creased to Rs 1.31 tril­lion at the year end, up by 14% from year end 2011.

This was an ap­pre­cia­ble growth given the com­pe­ti­tion and growth in over­all bank­ing sec­tor and the bank's to­tal de­posits also in­creased by Rs 110 bil­lion or 12%, a well at­tended meet­ing in­clud­ing the stake­hold­ers presided over by pres­i­dent and CEO, Dr. Asif A. Brohi and mem­bers Board, Shahid Aziz Sid­diqui and Tariq Kir­mani was in­formed.

The Pres­i­dent NBP Dr. Asif A. Brohi high­lighted the Bank's per­for­mance dur­ing the year in­clud­ing the ini­tia­tives taken by the man­age­ment as well as the chal­lenges be­ing faced.

The Pres­i­dent high­lighted the fact that Cen­tral bank re­duced its pol­icy rate by 250 bps in 2012 mak­ing to­tal re­duc­tion of 450 bps in the last 15 months. The State Bank of Pak­istan in­creased the min­i­mum profit rate on de­posit from 5% to 6%. Due to th­ese fac­tors the bank's in­ter­est mar­gin like all other banks re­mained un­der pres­sure.

This re­duc­tion was par­tially off­set through vol­ume growth and im­prov­ing de­posit mix. Af­ter tax profit stood at Rs 16.2 bil­lion, con­se­quent to the ad­just­ment in dis­count rate. To­tal as­sets of the bank in­creased to Rs 1.31 tril­lion at the year end, up by 14% from year end 2011, an ap­pre­cia­ble growth given the com­pe­ti­tion and growth in over­all bank­ing sec­tor.

The bank's to­tal de­posits in­creased by Rs 110 bil­lion or 12%. Dr. Asif A. Brohi spoke of growth in bank's de­posit, ad­vances and as­set base ex­plain­ing the bank's fo­cused strat­egy on in­creas­ing its CASA de­posits, re­duc­tion of non-per­form­ing loans, growth in bal­ance sheet size and ex­pense man­age­ment.

Fi­nan­cial Con­troller, Aamir Sat­tar gave a de­tailed pre­sen­ta­tion on the fi­nan­cial per­for­mance of the bank as well as high­light­ing the per­for­mance of each busi­ness unit of the bank spell­ing out the achieve­ments and the fu­ture strate­gies in that area.

The pres­i­dent ex­plained that dur­ing 2012 sev­eral ma­jor I.T. ini­tia­tives were un­der­taken in­clud­ing con­ver­sion of al­most all the branches to the on­line net­work, ex­pan­sion of ATM net­work, es­tab­lish­ment of full fledge 24/7 call cen­ter. The ben­e­fits of the said I.T. ini­tia­tives cou­pled with on­go­ing I.T. im­prove­ment will be fur­ther ex­plored in 2013 in the form of fur­ther mar­ket pen­e­tra­tion, branch ex­pan­sion and prod­uct devel­op­ment.

A num­ber of share­hold­ers ap­pre­ci­ated the ef­forts of Dr. Brohi and con­grat­u­lated him on as­sum­ing the of­fice of the Pres­i­dent NBP.

The Pres­i­dent NBP also high­lighted the fu­ture ini­tia­tives that the bank is tak­ing in terms of tech­nol­ogy up gra­da­tion and the progress for im­ple­men­ta­tion of ' Core bank­ing ap­pli­ca­tion. The share­hold­ers ap­proved div­i­dend pay­out of 70% cash div­i­dend (Rs. 7.00/- per share) and 15% Bonus shares as rec­om­mended in the Board of Di­rec­tor's meet­ing held on Fe­bru­ary 25, 2013 mak­ing to­tal pay­out of 97.2%.

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