The meeting of the Board of Directors (BoD) of National Bank of Pakistan was held yesterday at the bank’s Head Office in Karachi in which the BoD approved financial statements of the bank for the half-year ending on June 30, 2019.
It posted a profit before taxation of PKR 20.4 billion, registering an increase of 18.8% compared to June 2018. However, its after-tax profit amounted to PKR 11.1 billion, which was 11.1% lower as compared to PKR 12.5 billion in June 2018. The drop in after-tax profit was mainly due to the higher taxation charge of 46% compared to 27% for June 2018.
Highest Revenue in the Banking Industry
Overall revenue of the bank was PKR 53.8 billion which is highest in the banking industry and is also 18.4% higher than the bank’s revenues for the corresponding period last year. This growth was attributed to an increase in earning assets and a higher discount rate.
During the period under-view, the bank paid PKR 47.1 billion as profit to its depositors. On the back of increased deposits and higher profit rates, the profit paid was 81.9% higher than PKR 25.9 billion paid for the half-year that ended on June 30, 2018.
The bank’s net interest income increased by 18.0% to PKR 35.6 billion, while the non-fund income of the bank saw an increase of 19.3% to PKR 18.2 billion as compared with PKR 15.3 billion earned during the corresponding period last year.
Remittance and Assets
Complementing the objectives of the government and SBP, the bank is aggressively promoting remittances through banking channels. This has considerably increased the bank’s market share in home remittance business as transaction volumes and remittances grew by 29% and 19% respectively from June ’18.
While representing 13.8% of the banking industry’s total assets, the total assets of the bank stood at PKR 2,864.0 billion which is 2.3% higher than PKR 2,798.6 billion as of December 31, 2018.
The bank’s gross advances were PKR 1,091.9 billion, marginally higher than PKR 1,059.5 billion as of December 31, 2018. However, as compared to PKR 912.6 billion of June 2018, the gross advances increased by PKR 179.2 billion or 19.6%.
The bank’s deposits were increased to PKR 2,093.4 billion, higher by PKR 82.0 billion or 4.1% compared to PKR 2,011.4 billion on December 31, 2018. This represents 79.0% of the bank’s total liabilities which translates into a 13.7% share of total banking industry deposits.
Overall, customer deposits that form 84.0% of the bank’s funding pool remained stable during the period and amounted to PKR 1,758.0 billion which was 5.0% higher than PKR 1,674.1 billion as of December 2018
In its 70th year of service, the bank is committed to delivering strong results. Its business strategy is evolving to focus on its “National Role” through reaching and supporting underserved sectors including SME, Microfinance, Agriculture Finance, and finance for Micro-Housing, all being developed with the highest standards.