National Bank of Pakistan, for year 2016, reported highest ever performance numbers in its history. Outstanding growth during the year was achieved both in financial performance and financial position of the Bank, said a statement issued by the bank.
After-tax profit for the year 2016 amounted Rs. 22.8 billion i.e. 18% up against Rs. 19.2 billion of 2015. This translates into earnings per share of Rs. 10.69 compared to Rs. 9.03 of 2015.
The Board recommended cash dividend of Rs. 7.5 per share for the year which translates into payout ratio of 78 % (after statutory reserve allocation).
Despite a generally difficult year with downward trend for the banking industry on account of reduction in discount rate and lower exchange arbitrage opportunities, the Bank recorded a growth of Rs. 3.9 billion i.e. 12% in pre-tax profit which amounted to Rs. 37.1 billion in 2016. Pre-tax and after-tax return on equity were 31.5% and 19.3% (2015: 29.3% and 17%) respectively.
The bank made significant progress in improving its loan book quality as non-performing loans recorded a net reduction of Rs. 7.9 billion during the year.
During the reported year, healthy balance sheet growth has also been recorded reaching to Rs. 1,975 billion, depicting a 16 % YoY growth against Rs. 1,706 billion at the end of year 2015. During the year, gross advances of the bank increased by 13% to Rs. 782 billion compared to Rs. 692 billion as of December 2015. Similarly, the bank achieved a 16% growth in its deposits as the same reached Rs. 1,657 billion.
With “AAA” credit rating, the Bank operates with 118 Islamic branches and over 1,300 ATMs.