Higher NII lifts NBP’s profits to Rs 26 billion in 9MCY20

October 27, 2020 (MLN): National Bank of Pakistan (NBP) has earned unconsolidated net profits of Rs 26 billion for nine months ended on September 2020, which was 60% higher than the profits reported in the same period last year.

 This translated into Banks earnings per share which clocked in at Rs 12.28 against Rs 7.68 reported for 9MCY19.

The growth in bank’s profitability was attributed to healthy 48% YoY growth in net interest income (NII). The earnings further strengthened due to Rs 6.9 billion worth of profits earned from associates.

As per the Bank’s financial statement, the YoY jump in NII was primarily owing to small increase in the bank’s interest expense (11% YoY) compared to interest income earned (23% YoY).

The total non-interest income of the bank posted a surge of 8% YoY during 9MCY20 primarily owing to profit from associates booked this year against zero profit in the same period last year.  

However, the absence of capital gain and decline in bank’s Fee and commission Income, dividend income and foreign exchange income by 8%, 46% and 22% YoY limited the upside.

On the expense side, the bank reported provisioning expense of Rs 23 billion against Rs 8.9 billion, marking a whopping increase of 162% YoY.

Lastly, the bank witnessed 11ppts decline in affective tax rate from 44% to 33% during 9MCY20 which further supported bank’s earnings.

Unconsolidated financial results for the Nine months ended September 30, 2020 ('000 Rupees)

 

Sep-20

Sep-19

% Change

Mark-up/return/interest earned

              206,029,824

             167,387,548

23.09%

Mark-up/return/interest expensed

              126,181,247

             113,524,522

11.15%

Net mark-up/interest income

                79,848,577

               53,863,026

48.24%

NON-MARK-UP/INTEREST INCOME

 

 

 

Fee and commission income

                12,848,025

               13,986,121

-8.14%

Dividend income

                   1,298,024

                  2,398,061

-45.87%

Foreign Exchange income

                   3,351,403

                  4,319,613

-22.41%

Gain on securities – net

                                  –  

                     592,224

-100.00%

Share of (loss)/profit from joint venture – net of tax

                                  –  

                                 –  

 

Share of(loss)/profit from associates – net of tax

                   6,932,804

                                 –  

#DIV/0!

Other income

                   3,293,130

                  4,277,300

-23.01%

Total non-mark-up/interest income

                27,723,386

               25,573,319

8.41%

Total Income

              107,571,963

               79,436,345

35.42%

NON-MARK-UP/INTEREST EXPENSES

 

 

 

Operating expenses

                44,701,386

               41,239,673

8.39%

Workers welfare fund

                                  –  

                                 –  

 

Other charges

                      297,489

                     122,095

143.65%

Total non-mark-up/interest expenses

                44,998,875

               41,361,768

8.79%

Profit before provisions

                62,573,088

               38,074,577

64.34%

Provisions and write offs – net

                23,306,701

                  8,892,275

162.10%

Profit before taxation

                39,266,387

               29,182,302

34.56%

Taxation

                13,132,199

               12,851,676

2.18%

Profit after taxation

                26,134,188

               16,330,626

60.03%

Basic and diluted earnings per share

                           12.28

                            7.68

59.90%

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Posted on: 2020-10-27T14:35:00+05:00

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