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Tag: National Bank of Pakistan

  • Payment of benevolent grant to be made through valid bank account

    Payment of benevolent grant to be made through valid bank account

    ISLAMABAD: The payment of benevolent grant and group insurance fund would be made through only valid account opened at concerned branch of National Bank of Pakistan (NBP), a statement said on Monday.

    All those beneficiaries who are taking benevolent grant from the Federal Employees Benevolent and Group Insurance Fund (FEB & GIF) are hereby informed that in order to ease out the difficulties being faced by the beneficiaries, while drawing benevolent grant from National Bank of Pakistan, the BoT, FEB & GIF has decided that w.e.f. 1″ July, 2021 the amount of the monthly Benevolent Grant will be paid to the beneficiaries through valid account nos. to be opened with the concerned branches of the National Bank of Pakistan instead of cash payment.

    All the beneficiaries of monthly benevolent grant are hereby requested to open a Bank Account with the concerned Branch of the National Bank of Pakistan on or before 31.5.2021, if they have not opened yet.

    After opening the account the same may be communicated to FEB & GIF through bank as per following format: Benevolent GrantCase No. (copy of blue color payment order card including CNIC of the beneficiary may also be attached) CNIC of Employee Name of Beneficiary CNIC of Beneficiary Account No. of Beneficiary (10- digits Account No.) Name of Branch of NBP with Code (4- digits code) Amount of Monthly grant (Rs.) Date & amount of last payment made by NBP.

  • National Bank pays Rs310.29 million as penalties for regulatory violations

    National Bank pays Rs310.29 million as penalties for regulatory violations

    KARACHI: National Bank of Pakistan (NBP) has paid an amount of Rs310.29 million as penalty to State Bank of Pakistan (SBP) for violating regulatory provisions.

    According to the financial results of the bank for the year ended December 31, 2020, the SBP imposed Rs310.59 million as penalties during the year, which was paid by the NBP.

    The SBP imposed penalty on the bank for procedural violations in the areas of Customer Due Diligence (CDD)/Know Your Customer (KYC), Asset Quality, Foreign Exchange Operations.

    The imposition of penalties by the SBP on the National Bank increased by 120 percent in the year 2020 as the penal amount on the NBP was Rs141 million in the preceding year.

    The SBP from July 2019 started public disclosure of penal action against banks. “Enforcement actions are an integral part of 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.

    The total amount of penalties paid by the NBP was Rs316.44 million for the year ended December 31, 2020 as compared with Rs150.58 million in the preceding year.

    An amount of Rs4.72 million was also imposed by central bank of international branches on the National Bank of Pakistan.

  • National Bank declares over 93 percent growth in annual profit

    National Bank declares over 93 percent growth in annual profit

    KARACHI: National Bank of Pakistan (NBP) on Wednesday declared massive growth of over 93 percent in annual profit for period ended December 31, 2020.

    The bank’s profit after tax grew to Rs30.56 billion for the year under review as compared with the net profit of Rs15.81 billion in the preceding year.

    The significant growth may be attributed to sharp increase in gains from securities and reduction in operating expenses.

    The net mark-up income of the banks grew to Rs104.15 billion for the year ended December 31, 2020 as compared with Rs71.9 billion in the preceding year.

    Total income of the bank surged to Rs140.23 billion as compared with Rs108 billion.

    The bank’s gains from securities posted a massive growth of 273 percent to Rs7.88 billion for the year under review as compared with Rs2.11 billion in the preceding year.

    Operating expenses of the banks were at Rs62.79 billion for the year ended December 31, 2020 as compared with Rs65.7 billion in the preceding year.

    Provisioning and write-offs has cost the banks to the tune of Rs30.89 billion as compared with preceding year’s Rs14.25 billion.

    The bank declared Rs14.36 as earnings per share for the year ended December 31, 2020 as compared with Rs7.43 EPS in the preceding year.

    The board of directors of the bank, however, not recommended any cash dividend, bonus issue/right shares or any other entitlement.

  • National Bank declares 110 percent growth in quarterly profit

    National Bank declares 110 percent growth in quarterly profit

    KARACHI: National Bank of Pakistan (NBP) on Tuesday declared massive growth in after tax profit by 110 percent to Rs11 billion for quarter ended September 30, 2020.

    According to financial result, the sharp increase in profitability may be attributed to significant rise in gain securities. The bank’s gain on securities increased to Rs3.59 billion for the quarter ended September 30, 2020 as compared with Rs250 million in the same quarter of the last year.

    The net interest income of the bank increased by 71.58 percent to Rs31.4 billion for the quarter ended September 30, 2020 as compared with Rs18.3 billion in the same quarter of the last year.

    The total income of the bank jumped up by 58.86 percent percent to Rs40.78 billion for the quarter under review as compared with Rs25.67 billion in the same period of the last year.

    Operating expenses of the bank increased to Rs15.45 billion for the quarter ended September 30, 2020 as compared with Rs13.43 billion in the same period of the last year, showing growth of 15.04 percent.

    The NBP paid Rs7.67 billion as tax for the period under review as compared with Rs3.4 billion in the corresponding quarter of the last year, showing an increase of 126 percent.

  • NBP makes payment realization mandatory for goods clearance; FPCCI fears delays

    NBP makes payment realization mandatory for goods clearance; FPCCI fears delays

    KARACHI: Payment realization against financial instruments has been made mandatory for clearance of imported goods from August 10, 2020.

    In this regard National Bank of Pakistan (NBP) has issued necessary instructions to its branches receiving duty and taxes, customs clearing agents and other stakeholders.

    While referring to Federal Treasury Rules, the NBP said that it had observed the custom authorized branches of the bank after the introduction of WeBOC system were not adhering to the rules and Goods Declarations (GDs) were being issued against collection of clearing instruments.

    “A further clarification regarding the issue has also been take from State Bank of Pakistan (SBP), and the central bank had also advised to enforce Federal Treasury Rule 79 (1) (a),” the bank said.

    The NBP issued instructions to all its branches to ensure that only preliminary acknowledgement of the receipt of the cheque / payment order should be given on the prescribed form at the time of receipt of clearing instrument. “Posting in WeBOC and issuance of GD will be subject to clearing.”

    Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in a statement on Saturday expressed its concerns over the instructions issued by the NBP and said it would cause unnecessary delays for clearance of consignments and also increase cost in terms of port charges.

    Chairman of FPCCI’s Committee on Customs Shabbir Mansha said that for the past 70 years a system for payment of duty and taxes was operational.

    The sudden change in procedure will cause delay of consignment clearance and business community will pay additional charges for procedural delays.

    He surprised over the implementation of revised procedure especially at a time when trade was badly hampered due to COVID pandemic.

    “The payment procedure will affect international trade and a bulk of containers will be stuck up at ports,” he added.

    He said that the revised procedure was not practical because fluctuation in exchange rate was routine matter in the country. He said that importer make payment through financial instrument on the basis of prevailing of exchange rate and as per revised procedure the on the date of payment realization the exchange rate may be vary on the date of submission of the financial instrument. “In such a scenario the customs authorities will demand payment order for the exchange rate differential amount, he added.

    He lamented that in revised scenario the importer would face huge demurrage and detention charges despite duty and taxes paid through payment order.

    The FPCCI urged Prime Minister of Pakistan and State Bank of Pakistan to intervene into the matter and defer the implementation of revised payment mechanism.

  • NBP announces 21% decline in after tax profit

    NBP announces 21% decline in after tax profit

    KARACHI: National Bank of Pakistan (NBP) on Friday announced 21 percent decline in its annual profit for period ended December 31, 2019. The bank declared Rs15.8 billion after tax profit for the year 2019 as cmopared with Rs20.01 billion in the last year.

    According to unconsolidated profit and loss account, the bank declared basic earnings per share at Rs7.43 for the year 2019 as it was Rs9.41 EPS in 2018.

    The net interest income of the bank rose by 18.53 percent to Rs71.9 billion for the period ended December 31, 2019 as compared with Rs60.66 billion a year ago. Non-mark up income of the bank was flat at Rs36.19 bllion when comared with Rs36.246 billion a year ago.

    The operating expenses of the NBP increased by 18.02 percent to Rs65.725 billion when compared with Rs55.687 billion.

    The provisioning for write-offs increased by 26.1 percent to Rs14.25 billion in 2019 as compared with Rs11.3 billion a year ago.

    The tax payment of the bank also increased by 26.22 percent to Rs12.193 billion for the year ended December 31, 2019 as compared with Rs9.66 billion in 2018.

  • NBP makes progress in regulatory compliance for US operations

    NBP makes progress in regulatory compliance for US operations

    KARACHI: National Bank of Pakistan (NBP) has made significant progress in compliance with regulatory matters in USA operations.

    In its financial report for quarter ended September 30, 2019, the bank said that in 2016 its New York branch entered into a written agreement with the Federal Reserve Bank of New York and New York State Department of Financial Services (US regulators).

    This agreement requires the bank to address certain compliance and risk management matters relating to anti-money laundering and the US bank secrecy law requirements.

    This agreement also requires implementation of the requisite system and controls and allocation of adequate resources to ensure full compliance with such requirements.

    The NBP’s management continues to address the matters highlighted in the written agreement and in the subsequent inspections, and get them independently validated.

    “NBP has made considerable progress and seeks to comply with all applicable laws and regulations.”

    The NBP said that heightened attention to compliance is expected across the bank’s international franchise which will also gain from the development and implementation of an integrated strategy.

    As per quartered ended September 30, 2019, the total assets of the bank amounted to Rs3,025.37 billion which is 8.1 percent higher than Rs2,798.57 billion as at December 31, 2018.

    This represents around 13.8 percent of the banking industry total assets.

    The bank’s market share in deposits, advances and investment is around 14 percent, 12 percent and 15 percent, respectively.

    Strength of the bank’s balance sheet is driven by the wide market outreach and branch banking network where the focus remains on low-cost deposit mobilization.

    The bank said that due to the challenging economic environment the non-performing loans (NPL) of the bank have increased by Rs19.3 billion. As of September 30, 2019 NPL totaled to Rs152.49 billion as against Rs133.36 billion at the end of year 2018.

    “This translates into loan infection ratio of 13.9 percent which is slightly higher than 12.6 percent as of December 31, 2018.”

  • Loan disbursement to young entrepreneurs to start from next month

    Loan disbursement to young entrepreneurs to start from next month

    ISLAMABAD: The disbursement of loans to young entrepreneurs will start from next month after completing all the formalities, it was agreed at a meeting on Thursday to review Youth Entrepreneurship Scheme of Kamyab Jawam Programm.

    The meeting agreed that the disbursement of loans to the successful applicants under the scheme would start in December 2019 after completing all the required formalities.

    Muhammad Usman Dar, Special Assistant to the Prime Minister on Youth Affairs; along with Asad Umer, Chairman National Assembly Standing Committee on Finance, chaired a high-level meeting with the representatives from State Bank of Pakistan, Presidents and senior officials of National Bank of Pakistan, Bank of Punjab, and Bank of Khyber to review the processing of loan applications received under Youth Entrepreneurship Scheme (YES) of Kamyab jawan Programme.

    All the three executing banks of the scheme: National Bank of Pakistan, Bank of Punjab, and Bank of Khyber would strengthen their infrastructure both in terms of human resource and technology to cope with the huge challenge of processing one million applications received so far under the scheme.

    Speaking on the occasion, Muhammad Usman Dar reiterated his resolve to strictly follow merit and transparency in the processing and disbursement of loans to the potential entrepreneurs.

    This would not only create number of employment opportunities for youth but would also contribute remarkably to the national economic growth.

    Muhammad Usman Dar appreciated the commitment and efforts of State Bank of Pakistan and the three executing banks: National Bank of Pakistan, Bank of Punjab, and Bank of Khyber, in making this scheme a real game changer for the creation of jobs through the promotion of SME sector in the country.

  • National Bank declares marginal growth in profit with over 20 percent high earnings in nine months

    National Bank declares marginal growth in profit with over 20 percent high earnings in nine months

    KARACHI: National Bank of Pakistan (NBP) has declared marginal growth in after tax profit of one percent for nine months period ended September 30, 2019. However, income of the bank posted over 20 percent increase for the period.

    According to a statement issued by the bank, after-tax profit for the nine-months period amounted to Rs 16.3 billion being marginally 1.0 percent higher than Rs 16.2 billion earned during the corresponding period of 2018.

    Meeting of the Board of Directors (BoD) of the bank held on October 29, 2019 (Tuesday) at the bank’s Head Office in Karachi in which the BoD approved financial statements of the bank for the nine-months period ended June 30, 2019.

    For the nine-month period, total income of the bank amounted to Rs 79.4 billion which is 20.3 percent higher than Rs 66.0 billion YoY. While net interest income closed at Rs 53.9 billion, non-mark-up / interest income closed at Rs 25.6 billion, up by 23.7 percent and 13.7 percent respectively.

    With an increase of 26.2 percent YoY, the bank’s profit before taxation amounted to Rs 29.2 billion as against Rs 23.1 billion for September 2018.

    The drop in after-tax profit is mainly attributed to higher taxation charge of 44.0 percent as compared to 30.0 percent for the corresponding period last year. Net profit translates into earnings per share of Rs 7.68 as against Rs 7.60 for the corresponding nine-months period of prior year.

    Total assets of the bank amounted to Rs 3,025.4 billion which is 8.1 percent higher than Rs 2,798.6 billion as at December 31, 2018.

    These represent 13.8 percent of the banking industry total assets. The bank’s market share in deposits, advances and investment is around 14 percent, 12 percent, and 15 percent respectively.

    Representing 12.0 percent of the total industry loans, gross advances of the bank amounted to Rs 1,093.4 billion, marginally higher than Rs 1,059.5 billion as at December 31, 2018.

    However, compared to Rs 953.3 billion of September 2018, gross advances stand increased by Rs 140.1 billion or 14.7 percent. As of September 30, 2019 deposits of the bank amounted to Rs 1,938.0 billion, depicting a drop of Rs 73.3 billion or 3.6 percent as against Rs 2,011.4 billion as of December 31, 2018.

    Deposits constitute translate into ~13.5 percent share in total banking industry deposits. Customer deposits that form 87.5 percent of the bank’s total funding pool remained stable during the period and amounted to Rs 1,695.0 billion (2018: Rs 1,674.12 billion).

    Year 2019 is NBP’s 70th year of service to the Nation, and it continues to deliver strong results. Its business strategy is evolving to ensure a focus on inclusive development through reaching and supporting underserved sectors including SME, Microfinance, Agriculture Finance, and finance for Micro-Housing on a priority basis.

    This is in addition to the bank’s dominant role in dealing with public sector enterprises and its employees. Building a digital banking capability and a technology platform will be a central part of this strategy as will the inculcation of a performance driven culture within the institution.

    For achieving the strategic goals of the bank, certain functions at the Head Office level have been re-organized to create synergies and enhance risk controls.

  • Privatization of National Bank, State Life Insurance under consideration: Dr. Hafeez Shaikh

    Privatization of National Bank, State Life Insurance under consideration: Dr. Hafeez Shaikh

    ISLAMABAD: The government is considering privatization of big entities such as National Bank of Pakistan (NBP) and State Life Insurance Corporation for better results.

    Addressing a news conference in Islamabad on Sunday Prime Minister’s Advisor on Finance Dr. Abdul Hafeez Shaikh said that the government had begun to focus on improving the performance of institutions which were not properly functioning and have made decisions in this regard.

    The organizations which the public sector is unable to run will be handed over to the private sector in a transparent manner. So we have injected new energy into privatization.

    New companies have come forth and expressed their interest in privatization and their advertisements have been placed. We aim at fast-tracking these developments so productivity is increased.

    Furthermore, for state-owned companies which need to be revamped, an organization ‘Sarmaya Pakistan’ has been activated and 20 companies have been selected for restructuring on a fast-track basis.

    Shaikh also said that electricity distribution companies where many problems have arisen out of operating under the state will also be prepared for privatization.

    He said that PTI government had succeeded in reducing the circular debt to less than Rs10 billion rupees.

    He said when PTI government came into power the country was heading towards bankruptcy, but under the objective of economic stability, a number of steps were taken to control our Dollar Reserves.

    The advisor said government expenses were reduced through austerity measures and current account deficit was also reduced over 70 percent.

    Dr Hafeez Shaikh said six hundred thousand additional tax payers were registered. He said a new system has been introduced since 23rd of the last month under which speedy refunds are given to the business community. Now, refunds will be automatically ensured on 16th of every month.

    The advisor said the process of privatization has been expedited and state owned enterprises will be restructured on fast track basis to improve their performance.

    The advisor said value of rupee has improved resulting in a benefit of Rs246 billion in loans. He said Rs250 billion have been allocated for the development of agriculture sector.

    Dr Abdul Hafiz Shaikh said the government fixed the economic growth target of 2.4, which will be achieved easily due to prudent economic policies of the government.

    To a question, Dr Abdul Hafeez Shaikh said ease of doing business is top priority of the government.

    He said government is providing loans and subsidy to the business community on gas, electricity, due to which exports are on the rise. Businessmen are important for the government, who are vital in provision of jobs. He also made it clear that there was no tax on food items.

    The Finance Advisor said the government expects to collect over Rs1000 billion additional revenue through tax and non-tax resources in the current fiscal year. He said Rs140 billion have been received from two cellular companies and Rs370 billion is expected to be received in future from other resources.

    He said the economy of the country is rapidly moving toward stability due to effective policies of the government and economic indicators are positive as stock market and value of rupee are stable.