NBP: Profitability declines by 21.77% YoY in 9MCY22

October 28, 2022 (MLN): The National Bank of Pakistan (NBP) has posted net profits for nine months ended on Sep 30, 2022, to Rs19.28 billion, 21.77% YoY lower than the Rs24.64bn in the corresponding period last year, the company’s filings on the stock exchange showed on Friday.

This translates into earnings per share of Rs9.03 in 9MCY22, lower by 21.68% YoY against Rs11.53 in the same period last year (SPLY).

Going by the financial results, the net interest income of the bank increased by 11.36% YoY to Rs80.74bn in 9MCY22, owing to the 99.48% increase in the net interest earnings to Rs332bn as compared to SPLY. However, net interest expense shows a massive surge of Rs252bn, 167% YoY higher than Rs94bn in SPLY.

While the non-interest income moved down by only 4.12% YoY to stand at Rs27.36bn on an account of a 79.98% whopping decline in gains on securities and 817% YoY in net share from associates. On the other hand, the fee and commission income, dividend income, foreign exchange income, share from joint ventures and other income saw a 12.26%, 20.10%, 15.05%, 151.30%, and 5.05% year-on-year increase during 9MCY22.

On the expense side, the operating expense of the bank surged by 16% YoY to Rs55.75bn compared to Rs48.07bn reported in the corresponding period last year.

Meanwhile, the bank had to pay Rs29.44bn in the form of taxes, higher than 81.45% YoY when compared to the taxes of Rs16.22bn paid in SPLY.

At the time of writing, the scrip of the company is being traded at Rs25, decreased by Rs0.63 or 2.46% DoD.

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