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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