Like other banks, National Bank of Pakistan (NBP) has also suffered a loss of 14.5% in profitability in the first quarter of 2019 due to heavy taxation under super tax which eroded billions of rupees in profits.

According to the financial results, the profit-after-tax for the period under review amounted to Rs. 4.2 billion, which is 14.5% lower than Rs.4.9 billion earned during the corresponding period of 2018. The super tax was imposed vide the Finance Supplementary (Second Amendment) Act 2019 for the tax year 2018 (financial year ended December 31, 2017).

The earnings per share amounted to Rs. 1.97 against Rs. 2.30 for the corresponding quarter ended March 31, 2018.  Its pre-tax profit amounted to Rs. 8.7 billion against Rs. 7.6 billion for the corresponding quarter of 2018, registering an increase of 15.3%.

The bank earned mark-up/interest income amounting to Rs. 45.8 billion which is 45.9% higher than Rs. 31.4 billion earned during the corresponding period last year. This growth is attributed to the increase in discount rate, as well as a volumetric growth in both investment and advances, YoY.

Also, the bank’s non-mark-up/interest income increased by 40.2% YoY and amounted to Rs. 8.3 billion. The bank’s unconsolidated pre-provision profit amounted to Rs. 10.98 billion which is 45.2% higher than Rs. 7.6 billion for the corresponding period last year.

The total assets of the bank as at March 31, 2019 stood at Rs. 2.401 billion compared to Rs. 2.798 billion as at December 31, 2018, registering a decline of 14.2%. Gross advances of the bank amounted to Rs. 1.046.1 trillion which is slightly lower than Rs. 1.059.5 trillion as at December 31, 2018.

However, YoY, total advances stand increased by Rs. 176.6 billion or 20.3% as compared to Rs. 869.5 billion as of March 31, 2018. Total deposits of the bank as of March 31, 2019 amounted to Rs. 1.778.7 trillion, lower by Rs. 232.7 billion (11.6%) as against Rs. 2.011 trillion as of December 31, 2018. The drop was observed due to the withdrawal of deposits by certain financial institutions. Customer deposits that form the core of the bank’s funding pool, however, remained stable.

Moving into its 70th year of service to the nation, the bank’s business strategy is underpinned by a renewed focus on customer service supported by a significant upgrade of its technology infrastructure which is a key enabler.

Print Friendly, PDF & Email