Meeting of the Board of Directors (BoD) of National Bank of Pakistan at the bank’s Head Office in Karachi in which the BoD approved financial statements of the bank for the nine-month period ended September 30, 2019.
For the nine-months period, total income of the bank amounted to PKR 79.
4 billion which is 20.3% higher than PKR 66.0 billion YoY. While net interest income closed at PKR 53.9 billion, non-mark-up / interest income closed at PKR 25.6 billion, up by 23.7% and 13.7% respectively. With an increase of 26.2% YoY, the bank’s profit before taxation amounted to PKR 29.2 billion as against PKR 23.1 billion for September 2018.
After-tax profit for the nine-months period amounted to PKR 16.3 billion being marginally 1.0 % higher than PKR 16.2 billion earned during the corresponding period of 2018. The drop in after-tax profit is mainly attributed to higher taxation charge of 44.0% as compared to 30.0% for the corresponding period last year.
Net profit translates into earnings per share of PKR 7.68 as against PKR 7.60 for the corresponding nine-months period of prior year. Total assets of the bank amounted to PKR 3,025.4 billion which is 8.1% higher than PKR 2,798.6 billion as at December 31, 2018. These represent ~13.8% of the banking industry total assets. The bank’s market share in deposits, advances and investment is around ~14%, ~12%, and ~15% respectively. Representing ~12.0% of the total industry loans, gross advances of the bank amounted to PKR 1,093.4 billion, marginally higher than PKR 1,059.5 billion as at December 31, 2018. However, compared to PKR 953.3 billion of September 2018, gross advances stand increased by PKR 140.1 billion or 14.7%.
As of September 30, 2019 deposits of the bank amounted to PKR 1,938.0 billion, depicting a drop of PKR 73.3 billion or 3.6% as against PKR 2,011.4 billion as of December 31, 2018. Deposits constitute translate into ~13.5% share in total banking industry deposits. Customer deposits that form 87.5% of the bank’s total funding pool remained stable during the period and amounted to PKR 1,695.0 billion (2018: PKR 1,674.12 billion).
2019 is NBP’s 70th year of service to the Nation, and it continues to deliver strong results. Its business strategy is evolving to ensure a focus on inclusive development through reaching and supporting underserved sectors including SME, Microfinance, Agriculture Finance, and finance for Micro-Housing on a priority basis. This is in addition to the bank’s dominant role in dealing with public sector enterprises and its employees. Building a digital banking capability and a technology platform will be a central part of this strategy as will the inculcation of a performance driven culture within the institution. For achieving the strategic goals of the bank, certain functions at the Head Office level have been re-organized to create synergies and enhance risk controls.