February 24, 2021 (MLN): National Bank of Pakistan has reported earnings of Rs. 30.58 billion (EPS: 14.33) for the year ended December 31, 2020, i.e. around 84% higher as compared to the last year.
The rise in interest income by 7.64%, as well as decline in interest expense by 8.3%, allowed the Net Interest Income of NBP to grow by 44.66%. However, the non-interest income didn’t show the same momentum as it fell by 1.06% on account of lower fee income, dividend income, forex income as well as non-core income. It is worth mentioning that NBP saw a 265% growth in in gain on securities.
Against a 28.95% growth in total income, the bank saw a 4.36% decline in total expenses, which further helped in boosting the earnings.
Nonetheless, some setback was faced in the form of a 128% increase in provisioning costs, as well as a 28.12% rise in income tax expense.
Consolidated financial results for the year ended December 31, 2020 ('000 Rupees) |
|||
---|---|---|---|
Dec-20 |
Dec-19 |
% Change |
|
Mark-up/return/interest earned |
258,031,378 |
239,710,290 |
7.64% |
Mark-up/return/interest expensed |
153,651,948 |
167,556,408 |
-8.30% |
Net mark-up/interest income |
104,379,430 |
72,153,882 |
44.66% |
NON MARK-UP/INTEREST INCOME |
|||
Fee and commission income |
19,480,452 |
20,416,642 |
-4.59% |
Dividend income |
1,835,129 |
3,099,277 |
-40.79% |
Foreign Exchange income |
4,342,201 |
6,320,455 |
-31.30% |
Gain on securities – net |
7,912,766 |
2,165,524 |
265.40% |
Share of (loss)/profit from joint venture – net of tax |
(219,389) |
(96,336) |
|
Share of(loss)/profit from associates – net of tax |
42,813 |
37,331 |
14.68% |
Other income |
3,965,483 |
5,816,974 |
-31.83% |
Total non mark-up/interest income |
37,359,455 |
37,759,867 |
-1.06% |
Total Income |
141,738,885 |
109,913,749 |
28.95% |
NON MARK-UP/INTEREST EXPENSES |
|||
Operating expenses |
64,126,064 |
67,228,062 |
-4.61% |
Workers welfare fund |
– |
– |
|
Other charges |
316,439 |
150,585 |
110.14% |
Total non mark-up/interest expenses |
64,442,503 |
67,378,647 |
-4.36% |
Profit before provisions |
77,296,382 |
42,535,102 |
81.72% |
Provisions and write offs – net |
30,911,976 |
13,557,101 |
128.01% |
Profit before taxation |
46,384,406 |
28,978,001 |
60.07% |
Taxation |
15,798,487 |
12,330,809 |
28.12% |
Profit after taxation |
30,585,919 |
16,647,192 |
83.73% |
Basic and diluted earnings per share |
14.33 |
7.79 |
83.95% |
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