National Bank of Pakistan announced earnings (PAT) today for 3QCY23 at PKR 12.3bn (EPS: PKR 5.78).

NBP announced earnings (PAT) today for 3QCY23 at PKR 12.3bn (EPS: PKR 5.78), depicting an increase of 76% YoY while down 22% QoQ (3QCY22 EPS: PKR 3.29). While the rise in net interest income bolstered the bottom line during the outgoing quarter, the reduction in non-funded income and substantial provisioning negatively impacted the bank’s overall profitability.

Result Highlights

Interest Income of the bank settled at PKR 296bn during 3QCY23, increasing 94% YoY and 24% QoQ while interest expense was up by 99% YoY | 25% QoQ. With this, Net Interest Income of the bank clocked-in at PKR 47.6bn, up 73% YoY and 17% QoQ (9MCY23: PKR 121bn, +50% YoY).

Non-interest income for the quarter experienced a decline, down by 15% YoY | 45% QoQ, reaching a total of PKR 6.8bn. Consequently, the cumulative non-interest income for 9MCY23 amounted to PKR 27.7bn, showing a slight YoY increase of just 1% when compared to PKR 27.4bn in the SPLY. The primary reason behind this decline in NFI during the 9MCY23 was the substantial decrease in FX income, down by 52% YoY.

During 3QCY23, the bank incurred a substantial provisioning charge of PKR 9.2bn in contrast to a reversal of PKR 329mn reported in 2QCY23. With this, total provisioning charge clocked-in at PKR 9.6mn during 9MCY23 (9MCY22: PKR 3.6bn, +169% YoY).

The bank’s OPEX increased by 13% YoY while down 7% QoQ in 3QCY23 clocking-in at PKR 21.8bn. With this, Cost/Income stood at 40% in 3QCY23 against 54.5% SPLY.

Effective tax rate during 3QCY23 stood at 47% compared to 52% same period last year.


Currently, we have a “BUY” call on the stock with a Jun’24 TP of PKR 30.4/share.

Courtesy – AHL Research


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