Zubair Yaqoob
Karachi
NBP announced earnings on Tuesday for 9MCY19 slightly above expectations at PKR 16.6bn (EPS: PKR 7.80), depicting a YoY rise of 3% while a sequential downturn of 26% (3QCY19 EPS: PKR 2.47).
NII growth for the bank has been impressive during the year while hefty provisioning expenses have continued to stress earnings. NII of the bank settled at PKR 54bn during 9MCY19, increasing by an impressive 24% YoY.
NFI saw a 13% YoY uptick during 9MCY19 led by 39 percent higher FX income and 24% higher dividend income. On a sequential basis fee income portrayed a downturn of 28% QoQ while FX income contracted 51% owing to lesser volatility in money markets compared to last quarter.
The bank continued to book heavy provisioning expenses – PKR 8.7bn during 9MCY19 (+75% YoY) and PKR 3.4bn during 3QCY19, up by 12% QoQ. NPL accretion is usually witnessed during 3Q for NBP owing to seasonality nature of clients. OPEX clocked-in at PKR 42.5bn during 9MCY19, increasing 9% YoY while declining 11% QoQ. CIR declined to 59% during 9M vis-à-vis 63% SPLY. Effective tax rate for 9MCY19 was 44% compared to 30% in SPLY.
