September 2, 2020 (MLN): National Bank of Pakistan (NBP) has reported 36.84% YoY growth in net profits for the half year ended June 30th, 2020.
According to the bank’s unconsolidated financial statement, its net profits jumped from Rs 11.1 billion in the same period last year to Rs 15.19 billion.
This reflected in bank’s earnings per share which rose from Rs 5.22 to Rs 7.14.
The growth in earnings came at the back of increase in Net interest income (NII) by 36.2% YoY to Rs 48.4 billion and PIB accumulation at higher yields.
According to the report by Arif Habib Limited, NBP’s NII showed a very strong surge during 2Q and 4Q and is a trend witnessed continuously over the last few years. Aggressive rate cuts further stimulated the bank’s topline.
The profitability of the bank further elevated due to strong capital gains which grew by 875% YoY to Rs 3.3 billion, while Foreign exchange income and dividend income declined by 23% and 40% YoY respectively.
On the cost front, the bank witnessed a whopping 184.5% YoY increase in provisioning expense to Rs 15.6 billion from Rs 5.49 billion, however, it was offset by higher NII.
Moreover, the bank enjoyed 31% YoY reduction in tax expenses which provided further fuel to earnings.
|
Unconsolidated financial results for the Half Year ended June 30, 2020 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Jun-20 |
Jun-19 |
% Change |
|
Mark-up/return/interest earned |
145,258,636 |
97,689,973 |
48.69% |
|
Mark-up/return/interest expensed |
96,815,107 |
62,126,456 |
55.84% |
|
Net mark-up/interest income |
48,443,529 |
35,563,517 |
36.22% |
|
NON-MARK-UP/INTEREST INCOME |
|
|
|
|
Fee and commission income |
8,723,923 |
9,835,961 |
-11.31% |
|
Dividend income |
1,032,328 |
1,728,716 |
-40.28% |
|
Foreign Exchange income |
2,698,964 |
3,517,884 |
-23.28% |
|
Gain on securities – net |
3,335,162 |
342,032 |
875.10% |
|
Share of (loss)/profit from joint venture – net of tax |
– |
– |
|
|
Share of(loss)/profit from associates – net of tax |
– |
– |
#DIV/0! |
|
Other income |
2,550,548 |
2,779,125 |
-8.22% |
|
Total non-mark-up/interest income |
18,340,925 |
18,203,718 |
0.75% |
|
Total Income |
66,784,454 |
53,767,235 |
24.21% |
|
NON-MARK-UP/INTEREST EXPENSES |
|
|
|
|
Operating expenses |
29,250,357 |
27,800,889 |
5.21% |
|
Workers welfare fund |
– |
– |
|
|
Other charges |
293,238 |
91,171 |
221.64% |
|
Total non-mark-up/interest expenses |
29,543,595 |
27,892,060 |
5.92% |
|
Profit before provisions |
37,240,859 |
25,875,175 |
43.93% |
|
Provisions and write offs – net |
15,638,432 |
5,490,000 |
184.85% |
|
Profit before taxation |
21,602,427 |
20,385,175 |
5.97% |
|
Taxation |
6,412,058 |
9,284,161 |
-30.94% |
|
Profit after taxation |
15,190,369 |
11,101,014 |
36.84% |
|
Basic and diluted earnings per share |
7.14 |
5.22 |
36.78% |
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