NBP announces Rs17.04 billion as half year profit

NBP announces Rs17.04 billion as half year profit

KARACHI:  National Bank of Pakistan (NBP) on Thursday announced Rs17.047 billion as net profit for half year ended June 30, 2021.

The profit is 12.77 per cent higher when compared with Rs15.11 billion in the corresponding half of last year.

However, there was no dividend announced.

Net Interest Income (NII) of the bank settled at Rs 47.5 billion during 1HCY21, decreasing by 2 per cent YoY, and increasing by 19 per cent QoQ.

NFI of the bank increased by a meagre 1 per cent YoY as the rise in dividend income (+44 per cent YoY) was offset by a decrease in other income (60 per cent). On a sequential basis NFI increased 13 per cent QoQ as the bank reported strong fee income (+32 per cent QoQ) and healthy surge in FX income (+91 per cent QoQ).

Provisioning expenses for the bank came in at Rs 3.9 billion during 2QCY21 taking total provisioning expenses to Rs 6.9 billion during 1HCY21. Overall there has been a 55 per cent YoY reduction in provisioning, which could be due to improved outlook on the asset quality following the rebound in economic activity across the country leading to  reversal in general provisioning.

Operating expenses clocked in 4 per cent higher YoY and 14 per cent higher QoQ. Cost/Income ratio settled at 47 per cent during 1HCY21 against 44 per cent same period last year.

The bank booked an effective tax rate this quarter of 40 per cent and 39 per cent during  first half of current year.

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