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NBP: Profitability declines by 6% in CY21

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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Posted on: 2022-03-08T15:21:43+05:00

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