Karachi, March 08, 2022 (PPI-OT): NBP – CY21 Result Review

National Bank of Pakistan (NBP) announced its full-year CY21 results where the bank reported NPAT of PkR28.8bn (EPS: PkR13.4) compared to PkR30.6bn (EPS: PkR14.3) in the same period last year. The earnings release included a one-off expense of PkR9.8bn (EPS: PkR4.6).

Together with the result, the bank announced a dividend of PkR1/sh – the first since 2016.

For 4QCY21, the bank posted earnings of PkR1.9/sh down 45.8%QoQ/6.5%YoY. Adjusted earnings (Ex. of extraordinary expense) for the quarter stood at PkR6.5/sh, +83.0%QoQ/3xYoY. While we await clarity on the one-off expense of PkR9.8bn booked under extraordinary expense, the charge may potentially be against a US$55mn fine on NBP US Branch by US federal authorities.

Normalized earnings growth on a sequential basis is a product of 22.4%QoQ drop in administrative expense, the clarity on which is awaited from management to assess future sustainable expense.

Core income of the bank remained stable sequentially with the decline in gross yield of 4.1ppts was potentially offset by balance sheet volumetric growth.