NBP HOLDS 71ST AGM, APPROVES FINANCIAL STATEMENTS-2019 AND OTHER AGENDA ITEMS.

The 71st Annual General meeting of National Bank was held on May 12, 2020 through electronic means. The meeting that was initially scheduled to be held on April 24, 2020, was suspended till date due to the COVID-19 lockdown. The meeting was attended by all the members of the NBP Board as well as its senior management and a large number of shareholders. The shareholders were briefed that for the year 2019, the Bank recorded a solid growth in terms of both balance sheet size and income. Despite a generally difficult year for the economy, the bank's net mark-up/interest income closed 18.5% higher YoY at Rs. 71.9 billion (2018: Rs. 60.7 billion). The Bank also earned non-mark-up/interest earning of Rs. 36.2 billion. Accordingly, total income of the Bank closed at Rs. 108.1 billion i.e. 11.5% higher than Rs. 96.9 billion of 2018. In 2019, total expenses for the year amounted to Rs. 65.7 billion against Rs. 55.7 billion for the year 2018.

This amount, however, included a total of Rs. 7.3 billion of provision related to extraordinary HR related costs. Reflecting the general trend of deterioration in asset quality observed across the industry in 2019, NBP also experienced an 11.5% increase in non-performing loans. While provision charge amounted to Rs. 14.3 billion, profit before tax closed at Rs. 28.0 billion, being 5.7% lower YoY. The Bank has consequently focused on strengthening its balance sheet through this provisioning and through building contingency buffers for a total...