August 30, 2023 (MLN): The National Bank of Pakistan (PSX: NBP) has disclosed its financials for the first half of 2023, as per which it posted a profit of Rs27.14 billion [EPS: Rs12.71], depicting a significant 2.22x YoY surge compared to last year’s Rs12.24bn profit [EPS: Rs5.74], NBP’s latest filing on the local bourse revealed.
Going by the income statement, the bank witnessed an increase of 37.96% in its net interest income (NII) to stand at Rs73.37bn, compared to Rs53.18bn in SPLY. The surge in NII is due to a jump in interest-earning (Rs432.55bn), up by 2.41x YoY.
During the period under review, the bank’s Non-Markup Income (NMI) also rose by 7.62% YoY to Rs20.93bn, owing to a significant rise in fee and commission income, and dividend income to clock in at Rs11.42bn, and Rs2.24bn, depicting a gain of 5.17%, and 21.58% respectively.
In addition, the bank’s provision expense fell to Rs405.33m during the review period compared to Rs2.02bn in the corresponding period last year.
The total non-interest expenses increased by 22.93% to Rs44.86bn in 1HCY23 compared to Rs36.49bn in 1HCY22.
The increase was attributed to the jump of 22.49% YoY in operating expenses from Rs36.46bn in 1HCY22 to Rs44.66bn in 1HCY23,
The bank paid Rs21.90bn on the tax front, 2.22x higher than the amount paid in 1HCY22.
| Consolidated financial results for the half year ended June 30, 2023 (‘000 Rupees) | |||
|---|---|---|---|
| Jun-23 | Jun-22 | % Change | |
| Mark-up/return/interest earned | 432,546,000 | 179,495,567 | 140.98% |
| Mark-up/return/interest expensed | 359,173,467 | 126,310,596 | 184.36% |
| Net mark-up/interest income | 73,372,533 | 53,184,971 | 37.96% |
| NON MARK-UP/INTEREST INCOME | |||
| Fee and commission income | 11,418,695 | 10,857,375 | 5.17% |
| Dividend income | 2,239,336 | 1,841,914 | 21.58% |
| Foreign Exchange income | 4,487,811 | 4,690,759 | -4.33% |
| Gain on securities – net | 933,180 | 1,055,371 | -11.58% |
| Share of (loss)/profit from joint venture – net of tax | 623,395 | 246,663 | |
| Share of(loss)/profit from associates – net of tax | 17,786 | (61,244) | -129.04% |
| Other income | 1,207,537 | 815,392 | 48.09% |
| NON-MARK-UP/INTEREST INCOME | 20,927,740 | 19,446,230 | 7.62% |
| Total Income | 94,300,273 | 72,631,201 | 29.83% |
| NON MARK-UP/INTEREST EXPENSES | |||
| Operating expenses | 44,661,140 | 36,460,211 | 22.49% |
| Workers welfare fund | – | – | |
| Other charges | 196,913 | 30,263 | 550.67% |
| Total non mark-up/interest expenses | 44,858,053 | 36,490,474 | 22.93% |
| Profit before provisions | 49,442,220 | 36,140,727 | 36.80% |
| Provisions and write-offs – net | 405,331 | 2,024,778 | -79.98% |
| Profit before taxation | 49,036,889 | 34,115,949 | 43.74% |
| Taxation | 21,896,959 | 21,873,821 | 0.11% |
| Profit after taxation | 27,139,930 | 12,242,128 | 121.69% |
| Basic and diluted earnings per share | 12.71 | 5.74 | – |
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Posted on: 2023-08-30T10:39:16+05:00
