NBP: Profitability declines by 6% in CY21

MG News | March 08, 2022 at 03:21 PM GMT+05:00

0:00

March 08, 2022 (MLN): The profitability of the National Bank of Pakistan has dropped by around 6% YoY to stand at Rs26.76 billion (EPS: 13.44) for the year ended December 31, 2021, compared to Rs38.55bn (EPS: 14.33) in 2021 the bank’s filing on PSX showed today.

The suppressed profits are mainly due to the lower-income and one-off charge booked which is pertaining to the recent penalty imposed on NBP’s New York branch, as reported by Arif Habib Limited.

Going by the financial results, the net interest income of the bank has declined by 6.3% YoY to record at Rs97.97bn in 2021, owing to the major decline in interest earned to Rs232bn compared to Rs258bn in 2020, showing a dip of 10% YoY.

However, the non-interest income moved up by 4% YoY to stand at Rs38.86bn on account of the notable increase of more than two-fold increase in dividend income and forex income. On the other hand, the non-core income of the bank saw a significant decline of 53% YoY to record at Rs1.85bn.

On the expense side, the operating expense of the bank decreased by 5% YoY, compared to Rs61bn in 2020.

Nonetheless, some setback was faced in the form of provisioning costs which stood at Rs11.65bn in 2021. In addition, the bank had to pay Rs25bn in terms of taxation, higher than 58.44% YoY when compared to the taxes paid in 2020.

Consolidated financial results for the year ended December 31, 2021 ('000 Rupees)
	Dec-21	Dec-20	% Change
Mark-up/return/interest earned	232,052,245	258,031,378	-10.07%
Mark-up/return/interest expensed	134,284,644	153,651,948	-12.60%
Net mark-up/interest income	97,767,601	104,379,430	-6.33%
NON MARK-UP/INTEREST INCOME
Fee and commission income	19,200,385	19,480,452	-1.44%
Dividend income	4,515,634	1,835,129	146.07%
Foreign Exchange income	6,853,433	4,342,201	57.83%
Gain on securities - net	6,202,525	7,912,766	-21.61%
Share of (loss)/profit from the joint venture - net of tax	217,507	(219,389)	-
Share of(loss)/profit from associates - net of tax	23,057	42,813	-46.14%
Other income	1,856,263	3,965,483	-53.19%
Total non mark-up/interest income	38,868,804	37,359,455	4.04%
Total Income	136,636,405	141,738,885	-3.60%
NON MARK-UP/INTEREST EXPENSES
Operating expenses	61,059,172	64,126,064	-4.78%
Other charges	346,979	316,439	9.65%
Total non mark-up/interest expenses	61,406,151	64,442,503	-4.71%
Profit before provisions	75,230,254	77,296,382	-2.67%
Provisions and write offs - net	11,659,325	30,911,976	-62.28%
Extra ordinary item	9,778,848	-
Profit before taxation	53,792,081	46,384,406	15.97%
Taxation	25,031,700	15,798,487	58.44%
Profit after taxation	28,760,381	30,585,919	-5.97%
Basic and diluted earnings per share	13.44	14.33	-6.21%

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