The Board of Directors of National Bank of Pakistan in their meeting held on August 21, 2015 at the Bank’s Head Office Karachi approved the financial statements of the bank for the six months period ended on June 30, 2015.
Pre-provision profit for the six months period amounted to Rs. 22.3 billion compared to Rs. 15.6 billion of corresponding period last year registering an increase of Rs. 6.7 billion or 43%. Pre-tax profit amounted to Rs. 15 billion which is higher by 23% from the corresponding period last year. Due to recent budgetary changes, the bank had to record prior year tax charge of Rs.2.3 billion due to which pre-tax profit growth was not translated into after tax profit growth. After tax profit amount was Rs.7.5 billion as compared to Rs 8.1 billion for the same period last year. Earnings per share are Rs.3.54 as against Rs. 3.82 of the corresponding period last year.
Despite reduction in interest rates, net interest income increased from Rs. 19.4 billion in 1H 2014 to Rs. 24.1 billion in 1H of 2015 reflecting a healthy increase of 24% due to increase in balance sheet size and high yielding investments. The current and savings account (CASA) ratio improved to 75% compared to 72% at December 31, 2014 which helped in reducing the cost of funds and in improving NII of the bank. Non-interest income amounted to Rs. 19 billion, higher by Rs. 3.8 billion or 24.5% mainly due to increase in capital gains.
Compared to June 2014, deposits increased by Rs 135 billion. The bank is focusing on reducing the non-performing loans through restructuring. The bank is strongly capitalized with capital and reserves of Rs. 168 billion, which translates into break- up value per share of Rs.79/- per share. M/s JCR-VIS Credit Rating Company and Pakistan Credit Rating Agency (PACRA) has re-affirmed the bank’s standalone rating of “AAA / A1+”, one of the highest by the company for any bank in Pakistan.
