National Bank of Pakistan (NBP) has become the second most profitable bank of 2018 in Pakistan after MCB, which was the most profitable bank of the country for the same time period.
NBP recorded a profit of Rs. 20 billion in 2018, which is Rs. 2.3 billion less than in 2017. The bank did not maintain its profit growth in the fourth quarter of the calendar year that is usually its most profitable period of the year.
The bank’s profitability is far ahead of United Bank Limited’s profit of Rs. 15 billion, Allied Bank Limited’s Rs. 13 billion and Habib Bank Limited with Rs. 12.2 billion in 2018.
During the year, the bank registered a significant increase in loan-loss and other provisions which amounted to Rs. 11.3 billion as against Rs. 1.2 billion in the prior year. This is mainly due to defaulting by a single borrower group which has been fully provided for. Therefore, the after-tax profit for the year is lower by 13.1% against the previous year and amounted to Rs. 20 billion.
Becomes the First Bank To Maintain Rs. 2 Trillion Deposits
NBP is the first bank in Pakistan to maintain the deposits of Rs. 2 trillion. Being a public sector bank, it maintained an account of the government and its various institutions that caused mobilization of the huge deposit’s value.
The bank’s gross loans and advances crossed the mark of Rs. 1 trillion by end of 2018. For better liquidity and rate-risk management, it maintains a healthy portfolio of investment in low-risk securities.
NBP witnessed healthy growth in its balance sheet size as total assets of the bank stood at Rs. 2.8 trillion.
Highest Revenue in 7 Decades
The bank recorded solid growth in terms of both the balance sheet’s size and total revenues. Despite a generally difficult year for the banking industry, NBP has achieved the highest ever total revenue in its history of seven decades. The total revenue of the bank amounted to Rs. 96.9 billion which is 13.6% higher than Rs. 85.3 billion of the previous year.
While net interest/mark-up income increased by 11.8% to Rs. 60.7 billion, a 16.7% growth was also achieved in non-interest /mark-up income which stood at Rs. 36.2 billion.
NBP’s Initiatives and Expansions
The bank has just launched its Debit Card product and is realigning itself with emerging e-banking dynamics to exploit every digital channel for maximizing its market outreach to fulfill customer expectations.
NBP is continuously expanding its market outreach by adding to its product range, restructuring its business model, and adopting modern-day delivery strategies. The bank has a special focus on promoting Home Remittances into Pakistan through the banking channel. Building on its extensive and ever-growing network of correspondents, particularly in the Middle East, the bank is offering a hassle-free remittance service across Pakistan. Provision of services through alternate delivery channels and customer service quality are also key focus areas of the Bank.
During the year, the bank added 23 more branches to its network of Aitemaad Islamic Banking.