LAHORE - Meeting of the Board of Directors of National Bank of Pakistan was held at Bank’s head office to approve the financial statements of the bank for the year ended December 31, 2015. The bank achieved profit of Rs 33.2 billion in 2015 that is an increase of 51% from 2014. This is a complete turnaround from 2013 profit of Rs.7.1 billion (368 % increase). After tax profit growth was impacted by Rs.2.3 billion additional tax charge due to last year’s federal budget changes. However, despite this additional burden of increase of tax of Rs 2.3 billion, after tax profit is Rs. 19.2 billion which is 28% higher than previous year. These results were achieved through an effective execution of strategy which encompassed improving deposits mix for higher net interest income, portfolio optimisation and re-profiling, cost controls, automation of entire branch network, expansion of footprint through ATMs and branch network and focused strategy towards recoveries against non-performing loans.

With this performance all key ratios have improved significantly. For example after tax return on equity and assets stands as 17.0% and 1.2% respectively, key ratio of cost to income is in top bracket at 0.48, an improvement from 0.55 of last year. Bank’s key ratios are also solid with provision coverage at over 89 % and capital adequacy ratio at 17.6%.