NBP records 24% YoY increase in quarterly profits

April 29, 2022 (MLN): Despite the continued challenging environment, the National Bank of Pakistan (NBP) has posted 24% YoY net profits to Rs9.71 billion during the first quarter ended March 31, 2022, mainly on the back of the effectiveness of management’s strategies and resilience of the bank’s business model.

This translates into earnings per share of Rs4.56 in 1QCY22, up by 24% YoY against Rs3.67 in the same period last year.

Going by the financial results, the net interest income of the bank increased by 19.4% YoY to Rs25.82bn in 1QCY22, owing to the volumetric growth in average interest-bearing assets coupled with the impact of a higher average policy rate during the said period.

While the non-interest income moved down by only 2.4% YoY to stand at Rs8.68bn on an account of a 96% whopping decline in capital gains and other income. On the other hand, the fee and commission income and foreign exchange income saw a 21% YoY and 138% increase during 1QCY22.

On the expense side, the operating expense of the bank surged by 16.15% YoY to Rs17.05bn compared to Rs14.68bn reported in the corresponding period last year.

Notably, the decline in provisioning costs by 52.7% YoY to Rs1.43bn supported the financial health of the company.

meanwhile, the bank had to pay Rs6.28bn in the form of taxes, higher than 26.5% YoY when compared to the taxes Rs4.96bn paid in 1QCY21.

Consolidated financial results for the first quarter ended March 31, 2022 ('000 Rupees)

 

Mar-22

Mar-21

% Change

Mark-up/return/interest earned

 79,248,091

 48,522,762

63.32%

Mark-up/return/interest expensed

 53,425,499

 26,887,771

98.70%

Net mark-up/interest income

 25,822,592

 21,634,991

19.36%

NON-MARK-UP/INTEREST INCOME

 

 

 

Fee and commission income

 4,959,644

 4,098,738

21.00%

Dividend income

 886,671

 770,184

15.12%

Foreign Exchange income

 2,270,641

 952,812

138.31%

Gain on securities – net

 101,685

 2,616,138

-96.11%

Share of loss from the joint venture – net of tax

 100,699

 (13,052)

Share of(loss)/profit from associates – net of tax

 1,391

 6,879

Other income

 356,477

 461,901

-22.82%

Total non-mark-up/interest income

 8,677,208

 8,893,600

-2.43%

Total Income

 34,499,800

 30,528,591

13.01%

NON-MARK-UP/INTEREST EXPENSES

 

 

 

Operating expenses

 17,051,306

 14,679,922

16.15%

Other charges

 21,678

 3,517

516.38%

Total non-mark-up/interest expenses

 17,072,984

 14,683,439

16.27%

Profit before provisions

 17,426,816

 15,845,152

9.98%

Provisions and write offs – net

 1,435,741

 3,037,315

-52.73%

Profit before taxation

 15,991,075

 12,807,837

24.85%

Taxation

 6,277,452

 4,963,383

26.48%

Profit after taxation

 9,713,623

 7,844,454

23.83%

Basic and diluted earnings per share

 4.56

 3.67

24.25%

 

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Posted on: 2022-04-29T10:35:56+05:00

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