NBP registers 28% drop in profits in 1HCY22

MG News | August 17, 2022 at 03:30 PM GMT+05:00

0:00

August 17, 2022 (MLN): National Bank of Pakistan (NBP) has observed a 28% YoY reduction in net profits to Rs12.24 billion (EPS: Rs5.74) during the first half of the calendar year ended June 30, 2022, mainly attributed to 97% increase in tax expenses.

NBP declared a profit before income tax at Rs34bn in 1HCY22 which is 21% higher than a pre-tax profit of Rs28bn in the same period of the last year.

The bank booked Rs22bn taxes during 1HCY22, showing a 97% YoY jump against Rs11bn taxes paid in SPLY, due to the imposition of super tax in large-scale industry.

Going by the financial results, despite the higher policy rate, the net interest income of the bank inched up by only 12% YoY to Rs53bn as soaring interest expenses by 2x YoY offset the impact of an increase in interest income earned by the bank during the said period.

While the non-interest income moved up by only 2.5% YoY to stand at Rs19.45bn on an account of a 14% jump in fee and commission income. In addition, foreign exchange income and share of profit from joint ventures surged by 69% YoY and 4.4 times YoY, respectively during 1HCY22.

On the expense side, the operating expense of the bank went up by 16.4% YoY to Rs36.5bn.

Notably, the decline in provisioning costs by 71% YoY to Rs2bn supported the financial health of the company.

Consolidated financial results for the half year ended June 30, 2022 ('000 Rupees)
	Jun-22	Jun-21	% Change
Mark-up/return/interest earned	179,495,567	108,089,589	66.06%
Mark-up/return/interest expensed	126,310,596	60,606,162	108.41%
Net mark-up/interest income	53,184,971	47,483,427	12.01%
NON-MARK-UP/INTEREST INCOME
Fee and commission income	10,857,375	9,536,612	13.85%
Dividend income	1,841,914	1,469,666	25.33%
Foreign Exchange income	4,690,759	2,775,020	69.04%
Gain on securities - net	1,055,371	4,156,340	-74.61%
Share of profit from joint venture - net of tax	246,663	56,209	338.83%
Share of (loss)/profit from associates - net of tax	(61,244)	30,939	-
Other income	815,392	955,223	-14.64%
Total non-mark-up/interest income	19,446,230	18,980,009	2.46%
Total Income	72,631,201	66,463,436	9.28%
NON-MARK-UP/INTEREST EXPENSES
Operating expenses	36,460,211	31,326,608	16.39%
Other charges	30,263	24,872	21.67%
Total non-mark-up/interest expenses	36,490,474	31,351,480	16.39%
Profit before provisions	36,140,727	35,111,956	2.93%
Provisions and write offs - net	2,024,778	6,937,884	-70.82%
Profit before taxation	34,115,949	28,174,072	21.09%
Taxation	21,873,821	11,126,699	96.59%
Profit after taxation	12,242,128	17,047,373	-28.19%
Basic and diluted earnings per share	5.74	7.98	-28.07%

Copyright Mettis Link News

Related News

Name	Price/Vol	%Chg/NChg
KSE100	154,439.68 241.10M	-1.09% -1701.56
ALLSHR	94,668.16 984.91M	-0.80% -765.63
KSE30	47,119.91 93.25M	-1.26% -600.63
KMI30	226,125.72 147.15M	-1.17% -2674.34
KMIALLSHR	63,569.05 456.03M	-0.92% -592.28
BKTi	41,622.83 56.72M	-1.28% -538.80
OGTi	31,488.79 10.15M	-1.08% -344.95

Symbol	Bid/Ask	High/Low

Name	Last	High/Low	Chg/%Chg
BITCOIN FUTURES	116,850.00	117,320.00 114,850.00	1920.00 1.67%
BRENT CRUDE	66.88	68.17 65.71	0.51 0.77%
RICHARDS BAY COAL MONTHLY	84.00	84.00 84.00	-1.90 -2.21%
ROTTERDAM COAL MONTHLY	93.00	93.25 92.75	0.00 0.00%
USD RBD PALM OLEIN	1,106.50	1,106.50 1,106.50	0.00 0.00%
CRUDE OIL - WTI	62.60	63.98 61.69	0.23 0.37%
SUGAR #11 WORLD	15.81	15.87 15.67	-0.01 -0.06%