NBP holds 66th AGM, proposes cash dividend of Rs 5.5 per share

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National Bank of Pakistan held its 66th Annual General Meeting at a local hotel in Karachi on Monday March 30th, 2015. The meeting was well attended by the shareholders. The Chairman NBP, Mr. Muneer Kamal, and President NBP Mr. Syed Ahmed Iqbal Ashraf also attended the meeting.

The bank’s performance during the year was highlighted to the shareholders. It was stated that the Board of Directors in their meeting held on February 26, 2015 have proposed final cash dividend of Rs.5.5 per share (55%) for the year ended December 31, 2014 which translates into 86 % dividend payout of the bank’s distributable profit for the year 2014 (after statutory reserve allocation) and is the highest in the banking industry. This high payout shows bank’s strong capital position with continuous focus on increasing stakeholder value by capitalising on opportunities to drive strong performance for the organisation and even higher payouts to the shareholders in the years ahead. The shareholders approved dividend payout of 55% cash dividend (Rs. 5.50/- per share) as recommended in the Board of Directors of the bank. The shareholders were informed that the bank’s profit before tax increased by 211 % in 2014 and stood at Rs. 22 billion. Profit after tax increased by 173% from Rs. 5.5 billion in year 2013 to Rs. 15 billion in year 2014. Earnings per share were Rs. 7.06 in year 2014 as against Rs. 2.59 of last year, an increase of 173%.

Net interest income increased from Rs. 38.2 billion in 2013 to Rs. 44.2 billion in 2014 reflecting an increase of 16% due to balance sheet re-profiling and growth. Non-interest income increased by 23% from Rs. 25.6 billion in 2013 to Rs.31.5 billion in 2014.

Total deposits increased by 12% from Rs. 1,101 billion at December 31, 2013 to Rs.1, 234 billion at December 31, 2014. The current and savings account (CASA) ratio was 72% at December, 2014 compared to 69% at December 31, 2013 which helped in reducing the cost of funds and in improving profitability of the bank. Net NPL ratio (after provisions) improved to 3.62% from 4.21% at December 31, 2013.