KARACHI (PR): The Board of Directors of National Bank of Pakistan (NBP) in their meeting held on August 22 at the Head Office, Karachi approved the financial statements of the bank for the six months period ended June 30, 2013. Total operating revenues increased by Rs.1,443 million or 4.6% from corresponding period last year. Non-interest income increased by an impressive 24%. Pre provision profit of the bank stood at Rs.15, 844 million which is higher by 5.5% from last year reported number.

This was achieved despite 3.0% reduction in SBP discount rate since June 2012. The impact was offset through increase in volume as well as improved mark-up recovery. Administrative expenses were kept under control which increased by only 4%.  Provision charge against advances increased by Rs.4.0 billion mainly due to creation of general provision of Rs.3.0 billion against the portfolio. Provision coverage is now 85% which improved from 74% as of June 30, 2012.

On balance sheet side deposits compared to June 2012, increased by Rs.200 billion or 21% and stand at Rs.1.15 trillion, while compared to year end December 2012 deposits are higher by Rs.108 billion or 10.4%, the total at December 2012 Rs.1.04 trillion. Advances compared to June 2012 increased by Rs.67 billion, however from December 2012 advances are lower by Rs.12.5 billion due to settlement of certain energy related loans.

The Bank recorded after tax profit of Rs.6.0 billion with Earnings per share of Rs.2.83. Pre-tax return on equity stands at 15.1% with pre-tax return on assets being 1.2%.