LAHORE - National Bank of Pakistan (NBP) reported flat earnings of PKR12.1bn (EPS: PKR5.7) in 9MCY15. At the same time, 3QCY15 earnings were reported at PKR4.6bn (EPS: PKR2.2), up 16%YoY. The result was above street estimates on the back of higher realized gains on investment portfolio. During 9MCY15, the bank’s Net Interest Income (NII) reported a growth of 22%YoY to PKR36.4bn compared to PKR29.8bn in 9MCY14. However, provisions of PKR8.2bn, up 2.3xYoY during 9MCY15 kept profitability in check. The bank’s Non Funded Income (NFI) reported a robust growth of ~18%YoY in 9MCY15 to stand at PKR26.0bn. The growth in NFI was primarily on account of higher gains on sales of securities realized which clocked in at PKR10.2bn, up 70%YoY. Admin costs were slightly lower than forecasted, with growth in expenses contained to 5%YoY; clocking in at PKR32.1bn, against PKR30.5bn reported in corresponding period last year.
Meanwhile, according to a press release, the Board of Directors of National Bank of Pakistan in their meeting held on October 28, 2015 at the Bank’s Head Office Karachi approved the financial statements of the bank for the nine months period ended on September30, 2015. Profit pre-provision, posted a growth of 35% for the nine months period and amounted to Rs. 30.9 billion compared to Rs. 22.8 billion of corresponding period last year. Pre-tax profit is also higher by 23% and stood at Rs. 22 billion from Rs 18 billion of the same period last year. Due to recording of prior year tax charge of Rs 2.4 billion, increase in current tax charge and reduction of compensation rate on determined refunds, the pre-tax profit growth was not translated into after tax profit growth as it marginally increased to Rs.12.1 billion. Earnings per share are Rs.5.69 as against Rs. 5.67 of the corresponding period last year.