February 22, 2024 (MLN): National Bank of Pakistan (PSX: NBP)’s financial disclosure for 2023 reveals that the bank’s profit surged to Rs53.32 billion [EPS: Rs24.96], around 72.29% YoY higher than the earnings of Rs30.95bn [EPS: Rs14.49] reported in the same period last year (SPLY).
Going by the income statement, the bank witnessed an increase of 44.62% YoY in its net interest income (NII) to stand at Rs169.35bn in 2023.
The surge in NII is due to a jump in interest-earning (Rs1.03 trillion), up by 2.04x YoY.
Similarly, the bank’s total non-markup income improved by 14% YoY to Rs44.77bn, owing to a rise in gain of securities that was recorded at Rs4.42bn in 2023, depicting a growth of 3.94x YoY.
However, the major contributor to NBP’s non-markup income was the Fee and commission side, which recorded an inflow of Rs24.14bn in 2023.
Under the same head, NBP’s foreign exchange income went down by 6.52% YoY to Rs7.74bn during the review period.
On the expense side, the NBP’s total non-markup expenses increased by 19.81% YoY to Rs95.45bn in 2023 compared to Rs79.66bn in 2022.
The increase was attributed to the jump of 19.56% YoY recorded in the operating expenses from Rs79.59bn in 2022 to Rs95.16bn in 2023.
In addition, the bank’s provision expense also increased to Rs15.38bn in 2023, while during the SPLY, provision expense was recorded at Rs13.12bn.
Similarly, the bank’s other charges also went up during the review period.
On the tax front, the bank paid Rs49.98bn, 53.08% YoY higher than the amount of return paid in 2022.
| Consolidated financial results for the year ended December 31, 2023 ('000 Rupees) | |||
|---|---|---|---|
| Dec-23 | Dec-22 | % Change | |
| Mark-up/return/interest earned | 1,025,134,662 | 503,575,915 | 103.57% |
| Mark-up/return/interest expensed | 855,780,390 | 386,474,248 | 121.43% |
| Net mark-up/interest income | 169,354,272 | 117,101,667 | 44.62% |
| NON MARK-UP/INTEREST INCOME | |||
| Fee and commission income | 24,136,296 | 22,557,400 | 7.00% |
| Dividend income | 5,204,557 | 5,070,140 | 2.65% |
| Foreign Exchange income | 7,742,186 | 8,282,139 | -6.52% |
| Gain on securities – net | 4,421,246 | 1,123,216 | 293.62% |
| Share of (loss)/profit from joint venture – net of tax | 1,226,065 | 545,161 | |
| Share of(loss)/profit from associates – net of tax | 245,202 | (95,084) | -357.88% |
| Other income | 1,796,449 | 1,790,098 | 0.35% |
| Total non mark-up/interest income | 44,772,001 | 39,273,070 | 14.00% |
| Total Income | 214,126,273 | 156,374,737 | 36.93% |
| NON MARK-UP/INTEREST EXPENSES | |||
| Operating expenses | 95,159,211 | 79,588,284 | 19.56% |
| Other charges | 285,960 | 72,848 | 292.54% |
| Total non mark-up/interest expenses | 95,445,171 | 79,661,132 | 19.81% |
| Profit before provisions | 118,681,102 | 76,713,605 | 54.71% |
| Provisions and write offs – net | 15,382,139 | 13,116,455 | 17.27% |
| Profit before taxation | 103,298,963 | 63,597,150 | 62.43% |
| Taxation | 49,977,566 | 32,648,139 | 53.08% |
| Profit after taxation | 53,321,397 | 30,949,011 | 72.29% |
| Basic and diluted earnings per share | 24.96 | 14.49 | – |
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Posted on: 2024-02-22T14:03:29+05:00
