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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