NBP half-year profits up 32 percent

KARACHI: National Bank of Pakistan profit increased 37 percent to Rs15.190 billion for the half-year ended June 30, 2020, translating into earnings per share of Rs7.14, a bourse filing said on Wednesday.

NBP earned Rs11.101 billion with EPS of Rs5.22 in the six months ended June 30, 2019. The bank did not announce any cash dividend for the half-year ended June 30, 2020.

Arif Habib Limited in their research note said, “NII (net interest income) of the bank settled at Rs48.6 billion during 1HCY20, increasing by 36 percent YoY, and accelerating by a Himalayan 92 percent QoQ as interest expense nosedived 27 percent QoQ while interest earned remained stagnant.”

To recall, NBP’s NII showed a very strong surge during Q2 and Q4 and was a trend witnessed continuously over the last few years. “Aggressive rate cuts further stimulated the bank’s topline,” it noted.

Foreign exchange income of the bank declined 23 percent to Rs2.699 billion in the half-year under review, from Rs3.518 billion in January-June 2019. On QoQ basis however, the bank’s foreign exchange income increased 18 percent to Rs1.958 billion in January-June 2020, from Rs1.660 billion in the same period last year. Brokerage Topline Securities in their analysis report said, “The bank holds around 70 percent of interest bearing deposits.” Given the decline in interest rates, the bank registered a 27 percent QoQ decline in interest expense, which helped propel the bottom line, brokerage house added.