The State Bank of Pakistan (SBP) has imposed a monetary penalty of Rs14.61 million on the National Bank of Pakistan (NBP) for violating various regulatory provisions during the first quarter of the calendar year 2023.
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National Bank of Pakistan discloses deposit base up to March 31, 2023
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.
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National Bank vows to AML compliance related to New York branch
KARACHI: National Bank of Pakistan (NBP) has said that its New York branch continued to make progress against the enforcement actions for ensuring compliance related to Anti-Money Laundering (AML) laws.
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National Bank declares Rs31 billion as net profit for CY22
KARACHI: National Bank of Pakistan (NBP) has declared net profit of Rs31 billion for calendar year 2022.
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Applications invited for appointment of CEO National Bank of Pakistan
ISLAMABAD: Finance division has advertised to invite applications for appointment of CEO National Bank of Pakistan (NBP).
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State Bank, NBP to withdraw petitions in Riba case: Ishaq Dar
ISLAMABAD: Finance Minister Senator Muhammed Ishaq Dar Wednesday said that State Bank of Pakistan (SBP) and National Bank of Pakistan (NBP) will withdraw their petitions from the Supreme Court of Pakistan against the judgment of Federal Shariat Court in which the Court had ordered implementation of interest-free (Riba free) banking system in the country.
READ MORE: KCCI demands implementation of Riba free banking
He said that in this regard he held several meetings and detailed discussions with the SBP Governor and under the special directives of Prime Minister, it was decided that both the SBP and NBP would withdraw their petitions against the decision.
He said that the government would also expedite its efforts to introduce Shariah compliant banking system in the country for rapid growth and promotion of Islamic bank and finance.
READ MORE: SBP seeks Supreme Court guidance on Riba case judgement
He further informed that during 2013-2018 several steps were being taken to promote Islamic economic system and a special committee comprising on Islamic scholars were also formed, adding that Islamic Banking system also observed significant growth and progress at that time.
READ MORE: IPS demands implementation of court judgment on Riba
However, he said that from last few years the sector was completely neglected and no further progress was witnessed, adding that promotion of Islamic economic system and interest free banking was the top priority of incumbent government
He said that government was also determined to overcome all the challenges faced for introducing interest free banking system and it will take all possible measures to take forward the interest free banking and economy for the prosperity of nation.
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NBP net profit declines by 21% on high tax incidence in 9MCY22
National Bank of Pakistan (NBP) has declared 21 per cent decline in after tax profit due to high incidence during first nine months (January – September) 2022.
According to unconsolidated financial results submitted to the Pakistan Stock Exchange (PSX), NBP announced after tax profit at Rs19.16 billion for nine months period ended September 30, 2022 as compared with Rs24.14 billion in the corresponding period of the last year.
The bank declared earnings per share (EPS) at Rs9.01 for the nine months period ended September 30, 2022 as compared with EPS Rs11.35 in the same period of the last year.
Board of Directors of National Bank of Pakistan met on October 28, 2022 and not recommended any cash dividend, bonus issue/ right share or any other entitlement.
Bank officials said that taxation charge for the period amounted to Rs29.2 billion as against Rs16.1 billion during nine months of year 2021. They said that the Finance Act, 2022 brought in certain changes, which apart from increase in the statutory and super tax rate, also had a retrospective impact mainly due to ADR being below 50 per cent with reference to prior year’s earnings and has increased the effective tax rate from 40 per cent for nine months of 2021 to 60.4 per cent for nine months of 2022.
During nine months period ended September 30, 2022, the bank generated a gross interest income (GII) of Rs332.2 billion as against Rs166.5 billion for the similar nine months period of 2021. The Rs165.7 billion increase in GII is achieved through a robust volumetric growth in average interests earning assets coupled with the impact of higher average policy rate during this period that stood at 12.4 per cent as compared to 7 per cent during the same period last year.
Bank’s investments portfolio during nine months period ended September 30, 2022 averaged Rs2,427.5 billion (September 2021: Rs1,633.8 billion) and generated mark-up/interest income of Rs225.5 billion being Rs125.3 billion or 124.9 billion up against Rs100.3 billion for the corresponding period of last year.
This translates into average yield at 12.4 per cent (September 2021: 8.2 per cent). In the higher policy rate environment, the maturity profile of the bank’s investment book is skewed towards the shorter duration securities under available-for-sale category.
Similarly, placements, that averaged Rs126.9 billion (September 2021: Rs53.9 billion) generated a mark-up income of Rs10.8 billion (September 2021: Rs2.9 billion) at an improved yield of 11.3 per cent as compared to 7.1 per cent for September 2021.
For the nine months period ended September 30, 2021, the bank’s loan book averaged Rs1,341.9 billion and generated a mark-up income of Rs95.9 billion i.e. Rs32.5 billion or 51.4 per cent higher than Rs63.4 billion of the similar period last year. This significant growth was achieved through both, a volumetric growth, as well as the favorable Year on Year (YoY) rate variance. Pertinent to mention this high performance was achieved despite the fact that the bank carries a significant proportion of lower margin and non-performance public sector loans.
Likewise, on the back of higher average policy rate, the bank’s cost of funds for nine months period ended September 30, 2022 recorded a significant YoY increase and amounted to Rs251.6 billion as against Rs94.1 billion for corresponding nine month period of 2021.
The Rs159.5 billion or 167.4 per cent YoY increase is mainly recorded in cost of deposits that amounted to Rs141.9 billion as against Rs61.7 billion in the same period of the last year and the borrowings/repo costs by Rs75.8 billion to close at Rs101.5 billion. As compared to nine months ended September 2021, average non-remunerative current deposits increased impressively by Rs66.9 billion or 13.3 per cent to Rs569.6 billion.
Operating expenses of the bank for the period under review amounted to Rs54.8 billion which is 16.5 per cent higher YoY as compared to Rs47 billion of same period last year.
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SBP imposes over Rs290 million as penalty on six commercial banks
KARACHI: State Bank of Pakistan (SBP) on Friday imposed over Rs290 million as monetary penalty on six commercial banks for violating regulatory instructions pertaining to Customer Due Diligence (CDD) and Know Your Customer (KYC) during quarter ended September 30, 2022.
The central bank imposed the monetary penalty on commercial banks included: Bank Al Habib Limited; Meezan Bank Limited; National Bank of Pakistan; MCB Bank Limited; JS Bank Limited; and Faysal Bank Limited.
The highest amount of penalty of Rs140.03 million has been imposed on Bank Al Habib Limited for violating regulatory instructions pertaining to CDD/KYC, Asset Quality, Foreign Exchange and general banking operations.
The SBP directed Bank Al Habib Limited that besides payment of monetary penalty it should strengthen its control/process in the identified areas.
The second highest penalty of Rs81.72 million has been imposed on Meezan Bank Limited for the same regulatory violations. The SBP also imposed penalties, included: Rs25.875 million on National Bank of Pakistan; Rs19.223 million on MCB Bank Limited; Rs13.49 million on JS Bank Limited; and Rs10.025 million on Faysal Bank Limited.
The SBP from July 2019 started public disclosure of penal action against banks. “Enforcement actions are an integral part of the regulatory regime which involves imposition of monetary penalties and other actions against institutions and individuals for violations of laws, rules, regulations, guidelines or directives issued by SBP from time to time,” according to a circular issued by the central bank.
In order to bring more transparency and strengthen market discipline, SBP has decided to publicly disclose significant enforcement actions.
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National Bank announces 28% fall in net profit for 1HCY22
KARACHI: National Bank of Pakistan (NBP) on Wednesday announced a sharp decline of 28 per cent in net profit for half year ended June 30, 2022.
According to financial results submitted to Pakistan Stock Exchange (PSX), the bank announced Rs12.24 billion as profit after tax during the first half (January – June) of calendar year 2022 as compared with Rs17.05 billion in the same half of the last year.
The bank announced earnings per share (EPS) at Rs5.74 for the half year under review as compared with EPS Rs7.98 in the same half of the last year.
READ MORE: Engro Corp declares increase in half year profit to Rs16.6 billion
The massive decline in net profitability may be attributed to significant increase in payment of tax. NBP paid an amount of Rs21.87 billion for the half year ended June 30, 2022 as compared with Rs11.13 billion in the same half of the last year, showing about 97 per cent growth.
The bank recorded an amount of Rs34.12 profit before tax (PBT) during the first half of CY 2022 as compared with Rs28.17 billion in the same half of the last year, showing a growth of 21.12 per cent.
The profit after tax of the bank for the second quarter of calendar year 2022 ended June 30, 2022 recorded at Rs2.5 billion, depicting a decrease of 73 per cent Year on Year (YoY).
Higher taxes dragged the profitability in the second quarter.
READ MORE: Allied Bank’s tax payment grows 121% in 1HCY22
Net Interest Income of the bank settled at Rs27 billion during 2QCY22, increasing 6 per cent YoY and Quarter on Quarter (QoQ), both. With this, the total Net Interest Income (NII) for the half year ended June 30, 2022 went up to Rs53 billion, marking a 12 per cent YoY jump. Interest expense registered a significant increase of 116 per cent YoY while interest income was up 68 per cent YoY on the back of policy rate hikes, in the out-going quarter.
Non-Interest income too was up during the quarter, 7 per cent YoY | 24 per cent QoQ, taking 1HCY22’s total to Rs19.5 billion.
READ MORE: MCB Bank registers 71% decline in profit for 2QCY22
Foreign exchange , Fee and Dividend incomes fueled the Net Fee Income (NFI), posting an increase of 33 per cent, 9 per cent and 37 per cent on YoY basis, respectively.
In addition, the bank recorded Rs145 million in share of profit from joint venture, marking a 110 per cent YoY increase.
During 2QCY22, provisioning significantly declined 85 per cent YoY | 59 per cent QoQ. This takes the overall provisioning of the bank to Rs2 billion in 1HCY22, -71 per cent YoY.
READ MORE: Attock Petroleum declares massive 277% growth in annual profit
The bank’s operating expenses increased 16 per cent YoY in 2QCY22 clocking-in at Rs19.4 billion (1HCY22: Rs36.5 billion, 16 per cent YoY). With this, Cost/Income stood at 50.92 per cent in 2QCY22 against 46.38 per cent same period last year.
Effective tax rate was significantly up during 2QCY22 at 86.05 per cent compared to 39.26 per cent last quarter. This higher taxation was on account of revised taxes including corporate and super tax.
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NBP approves Rs1.5 billion for Waves Housing Project
KARACHI: National Bank of Pakistan (NBP) has approved an amount of Rs1.5 billion to kick start the affordable housing project being developed by Waves Singer Pakistan Limited, a statement said on Monday.
A signing ceremony between NBP and Waves was held in Lahore. With a commitment of Rs1.5 billion, NBP will be one of the largest financiers of the project.
NBP is also the mandated lead advisor and arranger for the upcoming syndicated finance facility to further develop the project.
This financing represents the active role NBP is playing to support the development of real estate sector in Pakistan.
Waves has been prominent player in the home appliance market of Pakistan for almost five decades and is now venturing into real estate sector. This financing will kick start the development of housing project.
The state of the art project is being launched under brand name “Waves Enclave” and will target affordable housing segment of the market with an inventory of more than 1,000 apartments.
This will be located at the entrance of Lahore between Thokar Niaz Baig and Allama Iqbal Town on the main Orange Metro Line.
Top of the line architects and consultants have been hired for the project and it is in the process of required approvals.
Its formal launch is expected in later half this year.