National Bank of Pakistan (NBP) Thursday disclosed its deposit base up to March 31, 2023, which showed a significant increase in total deposits compared to the previous quarter.
The bank’s total deposits reached PKR 2,976.2 billion, reflecting a growth of PKR 310 billion from the previous quarter’s PKR 2,666.2 billion.
The majority of the bank’s funding came from customer sticky deposits, contributing PKR 2,706.5 billion or 90.9 percent of the total deposits. The non-remunerative current deposits increased by 19.0 percent to PKR 675.7 billion, whereas remunerative but low-cost current account deposits decreased by 12.8 percent to PKR 639.4 billion.
The bank maintained a strong liquidity profile with current deposits accounting for 51.9 percent of the total deposits at PKR 1,543.7 billion, and the CASA ratio stood high at 79.4 percent. The Liquidity Coverage Ratio and Net Stable Funding Ratio remained over the regulatory requirements at 166 percent and 273 percent, respectively, compared to the regulatory requirement of 100 percent for each.
National Bank of Pakistan’s total assets amounted to PKR 6,055.6 billion, depicting a 15.6 percent increase against PKR 5,240.4 billion levels of December 31, 2022. The gross loans and advances of the Bank amounted to PKR 1,452.9 billion, depicting a slight increase of 1.0 percent or PKR 14.4 billion against PKR 1,438.6 billion at the end of 2022.
The bank maintained a diversified investment portfolio, and as of March 31, 2023, the bank’s investments (at cost) amounted to PKR 3,799.7 billion. The bank’s excess liquidity was mostly placed in shorter-term GoP securities to capitalize on price volatility in the currently hiking policy rate environment.
National Bank of Pakistan’s net assets amounted to PKR 304.95 billion, translating into a break‐up value of PKR 143.3 per share. The bank’s Total Capital Adequacy Ratio (CAR) stood at 20.06 percent with Tier‐1 capital adequacy ratio at 15.37 percent. Other financial soundness ratios were well compliant with applicable regulatory requirements.
The bank is pursuing a prudent loan growth strategy for better credit risk management in the prevailing high-interest rate scenario. The decrease in eligible Tier-1 and Tier-2 capital mainly corresponded to the bank’s decrease in tier-1 capital. Overall, National Bank of Pakistan’s financial soundness remained strong and well-compliant with regulatory requirements.
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