August 29, 2024 (MLN): With a 6.6% YTD growth in its assets base, the National Bank of Pakistan (PSX: NBP) achieved Rs7 trillion milestone in its balance sheet as its total assets reached Rs7.1tr from Rs6.7tr at the year-end 2023, according to the press release issued by the Bank on Thursday.
While investment (at cost) increased by 7% to reach Rs4,699.9 bn, gross advances recorded a 5.6% decrease to close at Rs1,540.1 bn. The Bank maintains a strong funding and liquidity profile through a well-diversified funding portfolio.
As of June 30, 2024, total deposits amounted to Rs4,103.5 bn. While the CASA ratio stood at 80.1%, Liquidity Coverage and Net Stable Funding also remained high at 197% and 174%, respectively.
Total Capital Adequacy Ratio stood at 24.72%, against 25.47% at the year-end 2023. This drop in capital is mainly triggered by a one-off adjustment in the opening equity due to incremental provisioning as per IFRS 9.
These ratios depict the strong resilience and financial soundness of the Bank.
The Bank enjoys the highest credit ratings of AAA / A1+ categories for both long-term and short term respectively as reaffirmed by both PACRA and VIS Credit Rating company in June 2024.
"The Bank is pursuing a major organizational and technological transformation, product enhancement, digitalization and initiatives for promoting financial inclusion with a focus on commercial and rural segments," the statement reads.
With the delivery of commendable financial results, the management’s strategic focus remains on enhancing its service quality levels, diversifying its outreach through digitalization, and increasing its range of products and services, it added.
Demonstrating yet another period of a remarkable performance, the Bank reported a total income of Rs96.8 bn, a 5.1% increase from Rs92.2 Bn in H12023.
The Bank’s performance was particularly stronger during Q22024, with a total income of Rs54.4 Bn compared to Rs42.5 Bn earned during Q12024.
These results were driven by a strong performance across both fund-based and non-fund-based earning streams.
In a stable interest rate environment, the Bank’s gross interest income surged by 30.1% YoY to close at Rs562.2bn, an increase of Rs130.3bn from Rs432.3 Bn for the same period in 2023.
Similarly, the Bank’s cost of funds also rose by 36.7% YoY, reaching Rs490.8 bn. Consequently, net interest income closed at Rs71.8bn, reflecting a small decrease of 2% YoY.
In the booming performance of the stock market during most of the period under review, the Bank recorded gain on securities amounting to Rs5.8bn, taking the total non-fund income to Rs25.1bn, which is 31.7% higher YoY.
Equity investment of the Bank generated a divided income of Rs3bn as against Rs2.4bn for the half-year ended June 30, 2023.
Fee & commission income earned through branch banking operations also stood high at Rs12bn, showing a YoY increase of 14.7%.
Amidst high inflationary pressures, operating expenses of the Bank for the half-year period under review amounted to Rs49.1bn which is 11.3% higher YoY as compared to Rs44.1 for a similar period last year.
The Bank is currently investing significantly in a major upgrade of its IT systems & infrastructure.
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Posted on: 2024-08-29T12:53:17+05:00
