NBP's strong performance continues.

The Bank earns Pre Tax Profit of PKR 18.2 Billion, 13.2% up YoY The Board of Directors of National Bank of Pakistan recently approved the interim condensed financial statements for the quarter ended March 31, 2023.

For Q1'23, the Bank generated gross interest income of PKR 192.4 Bn i.e. more than double the PKR 79.2 Bn for the similar period of 2022. The Bank's investments portfolio averaged PKR 3,519.2 Bn (Mar'22:PKR 1,984.6 Bn) and generated mark-up/interest income of PKR 146.2 Bn. Whereas, the placements averaged PKR 66.2 Bn (Mar'22:PKR 110.6 Bn) and generated mark-up income of PKR 2.7 Bn (Mar'22: PKR 2.7 Bn). During the quarter, the Bank's loan book averaged PKR 1,411.4 Bn and generated mark-up income of PKR 43.5 Bn i.e. PKR 17.3 Bn or 66.2% higher than PKR 26.2 Bn for Q1'2022. This significant growth in earnings was achieved through both, a volumetric growth, as well as the favourable YoY rate variance.

Likewise, cost of funds for the period also recorded a significant YoY increase and amounted to PKR 159.9 Bn as against PKR 53.4 Bn for the corresponding period of 2022. Consequently, net interest income for the period closed at PKR 32.5 Bn, depicting a 26.1% increase against PKR 25.8 Bn of Q1''22. Non-fund income for the period stood at PKR 7.5 Bn which is PKR 0.6 Bn or 7.3% lower than PKR 8.1 Bn of Mar'22. Reflecting the inflationary pressures and the Bank's continued investment into its IT systems and infrastructure, operating expenses amounted to PKR 21.2 Bn which is 26.3% higher YoY.

The Bank is investing significantly to improve and strengthen its IT infrastructure and systems for creating synergies in business processes, rationalising operating costs and achieving higher efficiency. Overall, operating costs translate into a cost-to-income ratio at 52.9% which is in line with the industry norms. Positively, provision charge amounted to PKR 0.68 Bn as compared to PKR 1.1 Bn a charge for Q1' 2022. As taxation charge amounted to PKR 7.5 Bn, profit after-tax stood at PKR 10.7 Bn i.e. PKR 0.85 Bn or 8.7% higher than PKR 9.8 Bn for Mar'22. This translates into Earnings per Share of Rs. 5.02 as compared to Rs. 4.62 for Mar'22.

Total assets of the Bank amounted to PKR 6,055.6 Bn, depicting a 15.6% increase from PKR 5,240.4 Bn levels of December 31, 2022. In the prevailing high interest rate scenario, the Bank is pursuing a prudent loan growth strategy for better credit risk management. Accordingly, the loans and advances of the Bank...