NBP delivers strong financial results.

KARACHI -- For the year 2020, NBP has delivered strong financial results, demonstrating resilience of its business model and the efforts of its 15,000+ workforce. During these challenging times, the bank has worked with the government to support economic activities and to ensure that customers are serviced uninterruptedly.

Despite the challenging times, the bank recorded highest ever after tax profit in its history. Gross markup/interest income closed 7.7% higher YoY at PKR 257.81 billion (2019: PKR 239.48b); whereas the interest/mark-up expense amounted to PKR 153.66b, of which PKR 103.38 b or 67.3% was paid to the depositors. Accordingly, net interest/mark-up income closed at PKR 104.16b, 44.8% higher YoY. Despite reduced economic activity during the year, the bank succeeded in maintaining its non-mark-up/non-interest earning 'NFI' stream at PKR 36.08b (2019:PKR 36.20b). Accordingly, total revenue of the bank closed 29.7% up YoY at PKR 140.23b (2019: PKR 108.11b). As the operating and other expenses dropped by 4.2% down YoY by closing at PKR 63.11b, the cost-to-income ratio improved from 60.9% in 2019 to 45.0% in 2020. Profit before provision closed 82.5% up at PKR 77.12b (2019:PKR 42.25b). The bank is more vigilantly monitoring its credit portfolio by moving from incurred to expected credit loss approach. This year, besides the specific provisions of PKR 15.9b, the bank has also booked general provisions of PKR 13.4b to make its balance sheet more resilient in the prevailing economic circumstances. During the year, NPLs of the bank increased 15.2% to close at PKR 171.29b (2019:PKR 148.75b).

Accordingly, profit before tax closed 65.1% higher YoY at PKR 46.22b (2019: PKR 28.00b); and profit after tax stood 93.3% higher YoY at PKR 30.56b (2019:PKR 15.81b). This...