Staff Reporter
Karachi
The Board of Directors of National Bank of Pakistan “the Bank” met on Tuesday, September 01, 2020 and approved the condensed interim financial statements of the Bank for the half-year ended June 30, 2020.
With strong growth in core earnings, the Bank reported unconsolidated Profit After Tax of PKR 15.2 billion, up by PKR 4.1 billion or 36.8% compared to the same period last year. Net assets of the Bank increased by PKR 26.4 billion to PKR 259.0 billion (Dec ‘19: PKR 232.6 billion).
During H1 ’20, the Bank earned gross mark-up/ interest income amounting to PKR 145.3 billion which is 49% higher than PKR 97.7 billion of H1 ‘19. Total earning assets averaged at PKR 2,428.1 billion (Jun ‘19: PKR 1,931.5 billion), of which investments amounted to PKR 1,403.7 billion and generated interest/mark-up income of PKR 85.4 billion, being 92.2% higher than that of H1, 2019.
Whereas, net advances averaged at PKR 971.1 billion being 6.6% higher than PKR 911.3 billion of Jun ’19, and recorded 18.7% growth in mark-up income that closed at PKR 57.6 billion. As the Bank incurred cost of funds amounting to PKR 96.8 billion (H1 ’19:PKR 62.1 billion), net mark-up/interest income for H1 ’20 closed at PKR 48.4 billion, being 36.2% higher against PKR 35.6 billion earned during the H1 ‘19. Contributing a quarter to the total income, Non-Fund Income “NFI” for this period amounted to PKR 18.3 billion, marginally higher by PKR 0.14 billion or 1% than PKR 18.2 billion of H1, 2019. Despite high inflationary pressures, the Bank did well at keeping a lid on the administrative expenses that clocked at PKR 29.5 billion, being 5.9% higher YoY, translating into Cost-to-Income ratio of 44.2% compared to 51.7% for H1 ’19.
