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NBP registers 28% drop in profits in 1HCY22

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%

 

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Posted on:2022-08-17T15:30:38+05:00

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