LAHORE (PPI) - National Bank of Pakistan (NBP) is scheduled to announce its 2010 result on March 1, 2011. Experts anticipate the bank to record profits of Rs15.2bn (EPS Rs11.28) in 2010, down 17pc. The dip in earnings will be attributable to two extraordinary gains booked in 4Q2009, comprising redemption of NIT units and a tax benefit. However, in 4Q2010 alone, we expect the bank to register profits of Rs3.8bn (EPS Rs2.83), an increase of 8pc QoQ, while lower by 57 percent YoY. Along with the result, NBP is likely to declare cash divined of Rs7/share and a bonus issue of 10pc. We currently recommend a 'Hold on the scrip,which trades at 2011F PBV and PE of 5.3x and 0.7x, respectively. The 17 percent decline in full year earnings to Rs15.2bn (EPS Rs11.28) will primarily be attributable to two extraordinary gains recorded in the 4Q2009, which augmented the profits to Rs8.8bn (diluted EPS Rs6.55) in the period. To recall, gain on redemption of NIT units (Rs3.9bn) along with lower effective tax rate of 18 percent in 2009 (tax reversal of Rs511mn in 4Q) had bolstered 2009 profits to Rs18.2bn (diluted EPS Rs13.54). Net Interest Income (NII) of the bank is expected to rise by 12 percent YoY to Rs43bn, due to rising KIBOR and higher earning assets in the form of investments.