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% |
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