NBP’s half-year profit surges 36.8pc to Rs15.2bn

ISLAMABAD: The National Bank of Pakistan’s Board of Directors on Wednesday approved the condensed interim financial statements of the bank for the half-year ended June 30, 2020.

The bank posted a record profit of Rs15.2 billion for the Jan-June period, showing an increase of Rs4.1 billion or 36.8pc over the same period of 2019.

The net assets of the bank increased by Rs26.4 billion to Rs259.0 billion (Dec ’19: Rs232.6 billion).

During the first half of 2020, the bank earned gross mark-up/interest income amounting to Rs145.3 billion, which is 49pc higher than Rs97.7 billion in the corresponding period of 2019.

Total earning assets averaged at Rs2,428.1 billion (June ’19: Rs1,931.5 billion), of which investments amounted to Rs1,403.7 billion while generated interest/mark-up income stood at Rs85.4 billion — 92.2pc higher than that of the first half of 2019.

Likewise, net advances averaged at Rs971.1 billion, which is 6.6pc higher than Rs911.3 billion in June ’19, while mark-up income recorded 18.7pc growth and closed at Rs57.6 billion. 

As the bank incurred cost of funds amounting to Rs96.8 billion (H1 ’19: Rs62.1 billion), net mark-up/interest income for H1 ’20 closed at Rs48.4 billion, 36.2pc higher against Rs35.6 billion earned during the H1 ’19.

Contributing a quarter to the total income, the bank’s Non-fund Income (NFI) for the period amounted to Rs18.3 billion, marginally higher by Rs0.14 billion or 1pc than Rs18.2 billion of H1 ’19.

Despite high inflationary pressures, the bank did well at keeping a lid on the administrative expenses that clocked at Rs29.5 billion, being 5.9pc higher year-on-year, translating into a cost-to-income ratio of 44.2pc compared to 51.7pc for H1 ’19.

On the financial position side, the total asset base of the bank on unconsolidated basis amounted to Rs3,163.4 billion, which is 1.2pc higher than Rs3,124.4 billion as at December 31, 2019.

On the asset front, investments continued to constitute the bulk of asset-mix and soared by Rs203.8 billion to Rs1,643.0 billion, whereas net advances registered a decline of 7.2pc over Dec ’19, clocking in at Rs935.6 billion.

Moreover, on the liabilities side, the deposit base of the bank registered an increase of Rs141.2 billion i.e. 6.4pc over Dec ’19, improving the current account mix to 55.1pc and CASA ratio to 83.1pc.

In June 2020, M/s VIS Credit Rating and PACRA Credit Rating re-affirmed the bank’s credit rating as “AAA” (Triple AAA), the highest credit rating awarded by the company for a bank in Pakistan.