National Bank of Pakistan (NBP) posted a double digit drop in profits by 36.4% for the second quarter of 2017. It is pertinent to note that this is the first formal quarter under the new President and CEO, Saeed Ahmed.
According to the information released by NBP, the bank’s profit dropped by PKR 1.6 billion or 36% year-on-year to reach PKR 4.443 billion in the second quarter of 2017 compared to PKR 6.061 billion from a year ago.
The financial institution recorded a profit for a six month period, which amounted to PKR 8.6 billion as compared to PKR 9.5 billon recorded in the last year. These figures can be translated into earnings per share of PKR 4.02.
Moreover, NBP’s half year operating income amounted to PKR 41.7 billion compared to PKR 41.8 billion from the preceding year. Adding to that, the bank’s net interest for the half year totaled to PKR 26.4 billion because of a lower yield on government securities. Non-interest for the half year recorded growth as it amounted to PKR 15.3 billion.
NBP remained under pressure in terms of profitability because of lower interest rates and maturity of high-yielding Pakistan Investment Bonds (PIBs).
During the timeframe under review, the bank achieved its milestone by increasing the size of its balance sheet to PKR 2.32 trillion, which marks an 18% increase from PKR 1.98 trillion recorded on December 2016. As of June 30, 2017, the deposits of the bank totaled to PKR 1,740 billion, marking an increase of 5% against that of December 2016.