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Government Owned Bank Achieves Record Revenue of 97 Billion


KARACHI: The already decided recent meeting of the Board of Directors (BoD) of National Bank of Pakistan (NBP) was held at 10am on Friday 22th February 2019 in bank’s head office Karachi chaired by Zubyr Soomro newly appointed Chairman Board of Director NBP. In this meeting BoD approved the financial statements of the bank for the year ended December 31, 2018.

Keeping its position in the banking sector, this year too, the NBP recorded solid growth in terms of both balance sheet size and the total revenues. Despite a usually difficult year for the banking industry, the bank achieved the highest ever total revenue in its history of seven decades. We would like to mention here that Federal Government has appointed Arif Usmani as President National Bank of Pakistan for a term of three years.

According to the report NBP’s total revenue amounted to Rs: 96.9 billion which is 13.6pc higher than Rs: 85.3 billion of the previous year, while net interest/mark-up income increased by 11.8pc to Rs: 60.7 billion (2017: Rs54.3 billion); a 16.7pc growth was also attained in non-interest / mark-up income which stood at Rs: 36.2 billion.


Profit before provisions amounted to Rs: 41.0 billion which is 11.4pc higher than Rs: 36.8 billion for the year 2017. During the year, the bank predictable a significant increase in loan-loss and other provisions which amounted to Rs: 11.3 billion as against Rs:1.2 billion in the prior year. This is generally due to default by a single borrower group which has been fully provided for.

Therefore, the after-tax profit for the year is lower by 13.1pc against the previous year and amounted to Rs: 20.0 billion (2017: Rs23.0 billion). This decodes into earnings per share of Rs: 9.41 (2017: Rs10.82). Pre-tax and after-tax return on average equity stood at 21.8pc and 14.7pc (2017: 29.8pc and 18.7pc) respectively. Healthy growth in balance sheet size was also recorded as total assets of the bank stood at Rs2.8 trillion, depicting 11.7pc growth YoY.


The banks’ gross loans and advances crossed the 1 trillion marks and increased by Rs: 202.5 billion. The NBP’s deposits also crossed Rs: 2 trillion marks as the same increased by Rs: 284.3 billion during the year. For enhanced liquidity and rate-risk management, the bank preserves a healthy portfolio of investment in low-risk securities.

The National Bank of Pakistan has filed a review petition against the judgment of the Supreme Court of Pakistan in the pension case and has also moved an application for constitution of a larger bench which has been accepted. Bank’s retired employees are in waiting of pension disbursement. But pending the decision of review petition, financial impact of the subject case has not been included in the instant financial statements as the bank looks forward to a sympathetic outcome of the case.

The NBP Board of Directors is aware of the fact that the shareholders look forward to receiving dividends. The BoD thought at length whether or not cash dividend should be recommended. Keeping in view the worth of the amount involved in the pension-related case, the BoD measured it prudent to retain the profits for the time being to maintain and further strengthen the capital base of the bank. Therefore, the NBP BoD did not sanction any dividend for the year 2018.

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