National Bank of Pakistan (NBP), one of the top five banks of the country, surprisingly booked a profit of Rs 4 billion in the first quarter of 2016, which is 23 percent higher than corresponding period of previous year.
NBP is the second bank among big five banks of the country — besides Allied Bank that posted a profit growth of 13 percent — to have posted a profit. HBL, UBL and MCB, on the other hands, posted decline in profit growth during the first quarter of 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.
Its Earnings per share increased to Rs 1.90 by March 2016 as against of Rs.1.54 for quarter ended March 31, 2015.
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 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 mark-up / 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.
According to company statement, NBP branch network consists of 1,403 domestic branches, including 82 branches dedicated for Islamic banking.
ATM network of NBP has now increased to ATMS 1,150 machines including 6 ATM centers. With deployment of Core Banking Application, the bank’s has now become more capable of launching technology-based products like online / mobile banking, cash management, cards etc.