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| NIB Bank profit jumps 337pc |
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Friday, April 24, 2009
By our correspondent
KARACHI: NIB Bank has announced a huge jump of 337 per cent in its net profit at Rs400.3 million for the first quarter of current calendar year 2009 on Thursday as compared to Rs91.5 million profits the Bank declared in the same quarter last year.
This translated into an Earning per Share (EpS) at Rs0.10 against Rs0.03 EpS recorded in the similar period last year.
The Bank, however, has announced no payouts for the ordinary shareholders for the period under review.
An official of the Bank told The News that Bank could not announce any entitlements for shareholders in this quarter despite of booking notable profit, as it had incurred a huge loss of about Rs7.5 billion in 2008.
“This loss was booked on account of the acquisition of PICIC Commercial Bank and another operation of PICIC Group by NIB Bank, while huge provisioning against non-performing loans (NPLs) also played its part in enhancing losses to massive,” he added.
Mark-up earned by the Bank in under the quarter under review stands at Rs4.7 billion, which is Rs1.3 billion higher than the same quarter of 2008. On the other hand, growth in mark-up expense was restricted to Rs0.9 billion.
This quarter results include a net reversal of provisions of Rs235 million achieved as a result of the Bank’s strategy of aggressively pursuing defaulting customers.
“Over the past six months NIB has placed strong focus and follow up in this area as a result of which the Bank expects to continue a strong recovery performance for the rest of the year and beyond,” Bank said in a press release.
The profit for first quarter of 2009 also included a quarterly impairment charge of Rs236 million in compliance with the State Bank of Pakistan’s Circular No 4 of 2009 which requires banks to record mark to market losses on equity securities held as Available for Sale and charge this amount to the profit & loss on a quarterly basis during 2009.
This charge was fully offset by a benefit of Rs289 million taken on account of Forced Sale Value of collateral, in line with the SBP’s BSD Circular No 2 of 2009.
NIB Bank has added over 14,000 customers and disbursed new loans worth over Rs3 billion during the quarter, Bank reported.
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ISSN 1563-9479 
