NBP earns Rs 15.2 billion profit after tax in 2nd half of FY20

KARACHI, Sep 02 (APP): With an impressive growth in core earnings, National Bank of Pakistan earned Rs 15.2 billion as profit after tax in six months ending June 30, 2020; up by 36.8% compared to the same period of last year.

This increased the bank’s net assets by Rs 26.4 billion to Rs 259 billion.
Over this period, NBP earned gross mark-up/ interest income amounting to Rs 145.3 billion which is 49% higher than Rs 97.7 billion of the same period of 2019.

Total earning assets averaged at Rs 2,428.1 billion, of which investments amounted to Rs 1,403.7 billion and generated interest/mark-up income of Rs 85.4 billion, being 92.2% higher than that of the corresponding period in 2019, said NBP release here on Wednesday.

Whereas, it said, net advances averaged at Rs 971.1 billion being 6.6% higher than Rs 911.3 billion of June 2019 and recorded 18.7% growth in mark-up income that closed at Rs 57.6 billion.

As the bank incurred cost of funds amounting to Rs 96.8 billion, net mark-up/interest income for the second half of FY 20 closed at Rs 48.4 billion, being 36.2% higher against Rs 35.6 billion earned during the same period of 2019.

Contributing a quarter to the total income, Non-Fund Income for this period amounted to Rs 18.3 billion, marginally higher by Rs 0.14 billion or 1% than Rs 18.2 billion over January to June of 2019.

Despite high inflationary pressures, the bank did well at keeping a lid on the administrative expenses that clocked at Rs 29.5 billion, being 5.9% higher, translating into cost-to-income ratio of 44.2% compared to 51.7% for the same period of 2019.

On the financial position side, the total asset base of the bank on unconsolidated basis amounted to Rs 3,163.4 billion which is 1.2% higher than Rs 3,124.4 billion as at Dec. 31, 2019.

On the asset front, investments continued to constitute the bulk of asset-mix and soared by Rs 203.8 billion to Rs1,643 billion, whereas net advances registered a decline of 7.2% over December 2019 to Rs 935.6 billion.

On the liabilities side, the deposit base of the Bank registered an increase of Rs 141.2 billion i.e. 6.4% over Dec. 2019, improving the current account mix to 55.1% and CASA ratio to 83.1%. In June 2020, M/s VIS Credit Rating and PACRA Credit Rating re-affirmed NBP’s credit rating at triple AAA; the highest credit rating awarded by the company for a bank in Pakistan.

In recognition of the successful deals and innovative initiatives that made a positive impact for its clients, the bank has recently been awarded two prestigious awards ‘Corporate Client Initiative of the Year – Pakistan’ and ‘The Innovative Deal of the Year – Pakistan’ by The Asian Banking & Finance-2020.