Karachi: The Pakistan Credit Rating Agency Limited announced that it has maintained the entity ratings for the National Bank of Pakistan, underscoring the bank's prominent role in the country's financial landscape. The ratings reflect the bank's stable financial performance, strong deposit mobilization, and effective cost management. Key highlights include an impressive growth in total deposits by 14.6% year-on-year to PKR 4,429.3 billion and a noteworthy improvement in profitability, particularly through increased net interest income.

According to The Pakistan Credit Rating Agency Limited, National Bank of Pakistan's credit profile is bolstered by its sovereign ownership and systemic importance. The bank's deposit franchise remains robust, with its CASA ratio slightly improving to 80.7%. Moreover, the cost of funds has seen a marked decline, aiding in margin expansion. Despite a decrease in net advances, the bank's asset quality has improved significantly, indicated by a 17.2% reduction in non-performing loans and a notable increase in the NPL coverage ratio to 106.4%.

The bank's investment portfolio has grown by approximately 6.7%, primarily in government securities, ensuring liquidity support and stable income generation. While the recent increase in the policy rate resulted in revaluation losses, the bank’s capitalization remained resilient, with strong capital buffers. Shareholders' equity saw a substantial rise, and the Capital Adequacy Ratio, though moderated, remains robust at 21.70%. Additionally, the bank is advancing its digital transformation, enhancing its core banking system and expanding its digital services, which have contributed to its improved profitability and cost efficiency.