NBP: Lower provisions lift profitability

MG News | August 27, 2021 at 12:08 PM GMT+05:00

Add Mettisglobal as a Trusted Source on Google

0:00

August 27, 2021 (MLN): National Bank of Pakistan (NBP) has announced its financial results for the period of half year ended on June 30, 2021, as per which the bank noted 12.8% YoY increase in its net profit to stand at Rs17.05billion, as compared to Rs15.11bn in 1HCY21.

As a result, the earning per share has also improved from Rs7.08 to Rs7.98 during the period.

Going by the results sent to PSX, the net interest income (NII) of the bank has slightly declined by 2.27% YoY in 1HCY21, while non-interest income for the period inched up by 1.20% YoY, which resulted the dip in the total income by 1.3% YoY to clock in at Rs66.46bn.

To note, the dividend income and net gain on securities have surged by 44% YoY and 24.86% YoY, which supported the non-markup interest income during the review period.

On the expense side, the operating expenses of the bank surged by 4.86% to stand at Rs31.33bn whereas non-core charges depicted a substantial decline by 91.55% YoY to reach Rs24.87million, the result of which bank saw an increase of 3.92% expenses to lock in at Rs31.35bn in 1HCY21.

Overall, there has been a 55.47% YoY reduction in provisioning, which could be due to improved outlook on the asset quality following the rebound in economic activity across the country leading to reversal in general provisioning, a report by Arif Habib Limited noted.

Lastly, the bank booked effective tax rate of 39% YoY in 1HCY21, which has increased from 30% YoY in 1HCY20.

Consolidated financial results for the Half Year ended June 30, 2021 ('000 Rupees)
	Jun-21	Jun-20	% Change
Mark-up/return/interest earned	108,089,589	145,393,598	-25.66%
Mark-up/return/interest expensed	60,606,162	96,807,886	-37.40%
Net mark-up/interest income	47,483,427	48,585,712	-2.27%
NON MARK-UP/INTEREST INCOME
Fee and commission income	9,536,612	9,313,718	2.39%
Dividend income	1,469,666	1,020,312	44.04%
Foreign Exchange income	2,775,020	2,828,022	-1.87%
Gain on securities - net	4,156,340	3,328,867	24.86%
Share of (loss)/profit from joint venture - net of tax	56,209	(217,623)
Share of(loss)/profit from associates - net of tax	30,939	(62,966)
Other income	955,223	2,544,203	-62.45%
Total non mark-up/interest income	18,980,009	18,754,533	1.20%
Total Income	66,463,436	67,340,245	-1.30%
NON MARK-UP/INTEREST EXPENSES
Operating expenses	31,326,608	29,873,564	4.86%
Workers welfare fund	-	-
Other charges	24,872	294,452	-91.55%
Total non mark-up/interest expenses	31,351,480	30,168,016	3.92%
Profit before provisions	35,111,956	37,172,229	-5.54%
Provisions and write offs - net	6,937,884	15,581,459	-55.47%
Profit before taxation	28,174,072	21,590,770	30.49%
Taxation	11,126,699	6,479,356	71.73%
Profit after taxation	17,047,373	15,111,414	12.81%
Basic and diluted earnings per share	7.98	7.08	12.71%

Copyright Mettis Link News

Related News

Name	Price/Vol	%Chg/NChg
KSE100	178,262.34 385.16M	4.23% 7241.13
ALLSHR	107,837.44 1,028.26M	3.85% 4001.05
KSE30	53,347.67 160.21M	4.70% 2395.68
KMI30	251,510.37 142.71M	4.52% 10876.50
KMIALLSHR	69,173.86 484.44M	3.91% 2601.11
BKTi	51,064.73 51.74M	4.91% 2391.50
OGTi	35,248.42 10.48M	4.59% 1546.17

Symbol	Bid/Ask	High/Low

Name	Last	High/Low	Chg/%Chg
BITCOIN FUTURES	64,550.00	66,075.00 63,875.00	335.00 0.52%
BRENT CRUDE	89.69	93.60 87.55	-7.09 -7.33%
RICHARDS BAY COAL MONTHLY	105.75	0.00 0.00	-1.55 -1.44%
ROTTERDAM COAL MONTHLY	120.00	120.00 120.00	-0.25 -0.21%
USD RBD PALM OLEIN	1,175.00	1,175.00 1,175.00	0.00 0.00%
CRUDE OIL - WTI	83.30	86.20 82.12	-6.01 -6.73%
SUGAR #11 WORLD	14.60	14.75 14.54	-0.17 -1.15%