KARACHI - The National Bank of Pakistans earnings for the first half (Jan-Jun) of current calendar year 2010 sharply increased by 24.5 per cent to Rs7.8 billion, translating into an earning per share of Rs5.81 over the first quarter this year, NBP said on Tuesday. In 2Q2010, net earnings were recorded at Rs3.6 billion (EPS PRs2.68), up 74.4 per cent YoY but down 14.5 per cent QoQ. NBP announced its financial results for the period ended June 30, 2010 the other day. According to results, banks net interest income (NII) grew by 12.3 per cent YoY and 3.6 per cent QoQ to Rs10.7 billon whereas non interest income increased by 30.0 per cent YoY and 18.7 per cent QoQ to Rs4.3 billion. The bank recorded total capital gain of Rs921.4 million in 2Q2010 versus loss of Rs136.8 million in Q2009 and gain of Rs783.1million in 1Q2010. The improvement in banks turnover is abided by decline in provision expenses, stood at Rs1.6 billion for diminution in value of investments. The results revealed that NBPs fee income dropped by 2.8 per cent and 10.5 per cent YoY and QoQ respectively to Rs2.5 billion. Banks operating expenses remained higher at 28.1 per cent or Rs7.1 billion as against Rs5.6 billion in the same quarter of last year while administrative expenses surged by 44.9 per cent YoY and 20.8 per cent QoQ to Rs7.0 billion, NBPs accounts showed. Banks total provisioning expenses dropped by 35.0 per cent YoY to Rs2.5 billion and 29.9 per cent up over sequential quarter. On the positive side, provisions against NPLs declined to Rs0.9 billion only from Rs3.5billion in 2Q2009, down by 73.1 per cent. On sequential basis, NPL provisions were 51.8pc lower.