National Bank of Pakistan’s profits rose 55.3% to Rs. 6.15 billion in the third quarter of 2017, as compared to Rs. 3.96 billion in the same period last year.
It was due to the provision reversal of Rs. 2 Billion and capital gains of Rs. 2 billion which helped the upward growth.
Earning per share increased to Rs. 2.89 as compared to Rs. 1.87 in the same period last year.
NBP booked provision reversal of Rs. 2 billion in the 3rd quarter of 2017 against receipt of TFC investment according to the management.
Net interest income of National Bank was increased by 4% YoY to Rs. 11.9 billion. Whereas it dropped 16% QoQ.
Non-interest income of the bank was up by 23% on the basis of higher capital gains, higher fee and commission and brokerage income.
The profit after tax for the period increased 9.6%, reaching Rs. 14.7 billion against last year’s quarterly profits of Rs. 13.4 billion
NBP’s net mark-up for the nine months increased by 3.06%, amounting to a total of 37.28 billion Rupees during the nine months ended September, 30th 2017
Company’s expenses for the period increased by 8.1% to Rs. 38.04 billion. The company’s basic earnings per share reached Rs. 6.91 against Rs. 6.31 in 2016.
The result was above the market expectations. No cash dividends, bonus or right shares were announced by the bank.
NBP’s script at the bourse closed at Rs. 45.91 with a turnover of 1,386,500 shares on Friday.
Back in September, it was seen that The National Bank of Pakistan (NBP) may face a burden of Rs. 48 billion after the Supreme Court ordered the state-owned entity to revise its retired employees’ pension and pay them arrears.
“Implementation of the decision by the Supreme Court of Pakistan will have a financial impact,” said NBP Secretary Board of Director S M Ali Zamin.
It was learnt that pensions of 8,000 retired employees have not been revised for the last six years, which itself is autonomous and comes under the finance ministry. The former employees in the litigation retired during 1999 to 2003.