NBP reports 63% profit surge, resumes dividend after seven years

KARACHI: National Bank of Pakistan (NBP) announced its Q4CY24 profit after tax of Rs22.4 billion (EPS: Rs10.6), reflecting a 63 per cent year-on-year (YoY) increase and a 7.6x quarter-on-quarter (QoQ) surge. However, full-year CY24 earnings declined 51 per cent YoY to Rs26 billion (EPS: Rs12.2) due to a Rs49 billion pension liability settlement.

Marking a major milestone, NBP resumed dividend payouts after seven years, announcing a final cash dividend of Rs8 per share -- its highest-ever annual payout. Net interest income (NII) rose 36 per cent YoY to Rs65.8 billion in Q4CY24, bringing total NII for CY24 to Rs171.4 billion, up 1.0 per cent YoY. Non-funded income (NFI) surged 73 per cent YoY in Q4CY24, driven by a 6.4x YoY gain on securities sales.

NBP’s operating expenses spiked 3.5x YoY to Rs100.6 billion in Q4CY24 due to pension liability reclassification. Meanwhile, the bank’s effective tax rate stood at 45 per cent in Q4CY24, lowering its full-year tax rate to 54 per cent from 48 per cent in CY23.