Staff Reporter
Karachi
National Bank of Pakistan NBP announced earnings on Wednesday for 1HCY19 above expectations at Rs 11.4bn (EPS: Rs 5.34), depicting a YoY decline of 10% and sequential uptick of 67% (2QCY19 EPS: Rs 3.34).
NII growth for the bank has been impressive while hefty provisioning expenses have continued to stress earnings. NII of the bank settled at Rs 35.7bn during 1HCY19, increasing by an impressive 18% YoY and 28% QoQ.
NFI saw an 18% YoY uptick during 1HCY19 led by 2x higher FX income and 54% YoY higher dividend income.
On a sequential basis staggering growth in fee income (40% higher QoQ) and 2.5x higher capital gains helped fuel NFI by 19% QoQ.
The bank continued to book heavy provisioning expenses – Rs 5.3bn during 1HCY19 (+88% YoY) and Rs 3bn during 2QCY19, up by 38% QoQ. OPEX clocked-in at Rs 28.7bn during 1HCY19, increasing 10% YoY. Effective tax rate for 1HCY19 was 45% compared to 27% in SPLY.
