Pakistan's premier lender National Bank of Pakistan (NBP) has achieved a profit of Rs 33.2 billion in 2015, showing 51pc increase in its earnings compared to the correspondent year of 2014 results.
This is a complete turnaround from 2013 profit of Rs 7.0 billion (a 400pc increase). After tax profit growth was hit by Rs.2.3 billion additional tax charges due to last year's Federal Budget changes. However, despite additional tax burden of Rs2.3 billion, after tax profit was recorded at Rs. 19.2 billion which is 28 percent higher than previous year. Meeting of the Board of Directors of National Bank of Pakistan here at Bank's Head Office in Karachi to approve the Financial Statements of the bank for the year ended December 31, 2015.
On year on year basis (YoY), core net interest income increased 17 percent from Rs. 45.8 billion to Rs 53.7 billion, while non-interest income increased 15 percent from Rs30.4 billion to Rs.35.0 billion in 2015. Administrative expenses were kept under control and increased marginally by 5 percent. The bank is aggressively endeavouring to increase its market share. Deposits are at Rs1.43 trillion, increase of 16 percent in 2015 YoY, higher than the sector growth and low cost CASA deposits constituting 77 percent of the domestic deposits. Total assets of the bank have crossed Rs.1.7 trillion mark.
The Board of Directors have proposed final cash dividend of Rs 7.5 per share (75%) for the year ended December 31, 2015 which is 36 percent higher than last year. This translates into 92 percent dividend pay-out of the bank's distributable profit for the year 2015 (after statutory reserve allocation) and is the highest in the banking industry. The National Bank of Pakistan (NBP) recently won the globally recognised "The Bank of the Year in Pakistan 2015" award. The awards presentation ceremony was organised in London by The Banker, which is a flagship publication of the Financial Times Group of UK. The award was received by President, NBP, Syed Ahmed Iqbal Ashraf. The Banker selected only one bank from each of 120 countries across the world.
Over 1,000 entries were collected and the judges selected winning banks based on progress over the past 12 months. From Pakistan, only NBP was chosen for the award for the year 2015. The Banker "Bank of the Year Awards" is regarded as the Oscars of the banking industry worldwide and for 90 years, The Banker has been the world's leading monthly journal of record for banks globally.
The aim of the awards is to highlight industry-wide excellence within the global banking community. NBP is well known to be the largest bank of the country in terms of customers, rural penetration and lending portfolio. Being the "Nation's Bank", it also handles government treasury business.