National Bank of Pakistan (NBP) continued to exhibit a strong momentum of profitability during the first quarter of 2021 (Jan-Mar).
The bank reported a profit of Rs. 7.7 billion, showing a growth of 87% compared to Rs. 4.11 billion made in the same period last year.
The bank’s earnings per share were increased from Rs 1.94 to Rs. 3.62. Given the significant drop in the policy rate as compared to the same period last year, gross mark-up/interest income was Rs. 48.5 billion being 33.2% lower, YoY.
Likewise, the interest/mark-up expense also dropped by 52.0% at Rs. 26.9 billion. Consequently, the net interest/mark-up income of the bank stood at Rs. 21.6 billion, i.e. 30.3% higher, YoY.
The bank has delivered strong financial results, demonstrating the resilience of its business model and efforts of its workforce in serving the Nation and working with the Government towards swift economic recovery in the country.
The bank’s end-of-year total assets were closed at Rs. 3,340.3 billion i.e. 11.0% higher than Rs. 3,008.5 billion levels of the year-end 2020. The board’s efforts and strategy have recently been focused upon strengthening the bank’s balance sheet, inducting a team of professionals with the required expertise, developing an effective framework of policies and controls to protect the Bank, and building a corporate culture based on performance and accountability.
In recent years, the bank has continued to retain earnings, and over 2019 and 2020 these retained earnings amount to Rs. 46.4 billion. Over and above this, after identifying and dimensioning the contingencies facing the bank, provisions for a total of around Rs. 60.0 billion were created over the same period to cover potential portfolio losses, significant HR related exposures and operational vulnerabilities.
Thus, the bank’s balance sheet has been reinforced considerably by about Rs. 100 billion during the last two years. The bank is executing a post-crisis recovery strategy to continue playing its systemically important role in the economy, while also maintaining a strong and resilient balance sheet to deliver performance for shareholders.
For the year 2021 &amp;amp;amp;amp;amp;amp;amp; beyond, the Bank’s business strategy will continue to focus on financing and supporting underserved sectors including SME, Microfinance, Agriculture Finance and the PM’s Low-Cost Housing initiative on a priority basis.
Source: Pro Pakistani