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NBP’s Assets Reach Rs. 6 Trillion Mark, Profits Up 8.7% in Q1

The National Bank of Pakistan (NBP) balance sheet recorded growth with a balance sheet surging to over Rs. 6 trillion by the end of March 2023. The bank’s profit also grew to Rs. 10.7 billion with an 8.7 percent increase during the first quarter of 2023 compared with the similar period.

As the taxation charge amounted to Rs. 7.5 billion, profit after tax stood at Rs. 10.7 billion i.e. Rs 0.85 Bn or 8.7 percent higher than Rs. 9.8 billion for March 2022. This translates into Earnings per Share of Rs. 5.02 as compared to Rs. 4.62 for March 2022.

The total assets of the Bank amounted to Rs. 6.055 trillion, depicting a 15.6% increase from Rs 5.240 billion levels of December 31, 2022. In the prevailing high-interest rate scenario, the bank is pursuing a prudent loan growth strategy for better credit risk management. Accordingly, the loans & advances of the bank amounted to Rs. 1.452 trillion i.e. slightly above the Rs. 1.438 trillion at the end of the year 2022.

Given the limited quality loan growth market and steady growth in customer deposits, excess liquidity with the Bank is mostly placed in shorter-term government securities to capitalize on price volatility in the currently high policy rate environment. The bank is maintaining a diversified investment portfolio across zero-risk weighted GoP instruments, high dividend-yielding equities and other interest-bearing financial instruments.

As at March 31, 2023, the bank’s investments amounted to Rs. 3,799.7 billion. The bank achieved approximately 12 percent growth in deposits, clocking in at Rs. 2,976 billion compared to Rs. 2,666.2 billion on December 31, 2022.

Net Assets amounted to Rs. 304.95 billion translating into a break-up value of Rs. 143.3 per share (YE’22: Ra. 141.4). Total Capital Adequacy Ratio stood at 20.06% with Tier-1 capital adequacy ratio at 15.37 percent as compared to 21.59 percent and 16.30 percent, respectively, at YE’22. Other financial soundness ratios are well compliant with applicable regulatory requirements.

Reflecting the inflationary pressures and the bank’s continued investment into its IT systems & infrastructure, operating expenses amounted to Rs. 21.2 billion which is 26.3 percent higher YoY. The bank is investing significantly to improve & strengthen its IT infrastructure & systems for creating synergies in business processes, rationalizing operating costs, and achieving higher efficiency.

Commenting on the quarterly performance, the Bank’s president/CEO(A), Rehmat Ali Hasnie, appreciated that the strategic delivery and financial results were testament to the efforts & dedication demonstrated by the Bank’s employees.

The Bank is pursuing a major organizational and technological transformation, product enhancement, digitalization and initiatives for promoting financial inclusion with a focus on commercial and rural segments. In parallel with its business growth initiatives, the Bank has also continued to progress via the remediation of legacy issues.

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