Karachi, March 08, 2022 (PPI-OT): Commercial Banks – National Bank of Pakistan

Earnings: National Bank of Pakistan (NBP) announced its financial result for the year ending 2021. As per the financial result, the bank reported full year earnings of PKR 27.8bn (PKR 13.1/share) compared to last year PKR 30.6bn (PKR 14.4/share) a decline of -9%y/y. Profitability for 4QCY21 stood at PKR 3.6bn (PKR 1.7/share), down by 17%y/y on the back of reversal of provision to the tune of PKR 0.3bn.

Dividends/Payouts: The bank announced final cash dividend of PKR 1/share in its final year announcement.

Operating performance: During the period under review, the bank reported net-interest income of PKR 97.6bn (down by -6%y/y) and non-interest income of PKR 36.9bn (up by 2%y/y). As a result, total revenue of the bank stood at PKR 134.6bn (down by -4%y/y). Moreover, the bank recorded operating expenses of PKR 60bn (down by -5%y/y). As a result, bank’s cost/income ratio slightly deteriorated to 44.6% (CY20: 45%) during CY21; however, decline in earnings was limited by lower provisioning charge of PKR 11.9bn during CY21 compared to last year provision charge of PKR 30.9bn.