Although earning a huge profit of Rs 12.73 billion for the half year ended on June 2018, the board of directors of the National Bank of Pakistan has not acknowledged any cash dividend, Bonus issue, right share or any other entitlement. According to the financial accounts for the period under review the NBP earned huge profit of Rs 12.74 billion more Rs 4.09 billion which is 47.40 percent higher compared to the profit of year 2017.
The Bank earned net markup interest income after provisions of Rs 27.80 billion during the half year 2018 against the income of Rs 24.88 billion during the first half of 2017. However, the non-interest income could only slightly improve from Rs 16.20 billion in 2017 against Rs 16.05 billion during the half year 2018.
On the expense sides the non-markup interest expenses, the bank controlled the expenses to Rs 26.49 billion in the six months of the year 2018 against the expenses of Rs 27.10 billion during the same period last year.
However, the administrative expenditures shot up slightly from Rs 25.53 billion in six months of 2017 against Rs 26.14 in six months of 2018. The experts said that the expenses escalated due to the extravagance of the administration as it showed no restraint in controlling the administrative expenditures. The bank earned a profit of Rs 17.51 before taxation in the period against the same period profit of Rs 13.83 billion.
On the other hand, the after taxation profit of the bank has shot up to Rs 12.74 billion in the six months of the year 2018 against the profit after taxation of Rs 8.64 billion which is over 47 percent high against the profit of six months of 2017.
The bank despite the fact that the profit of the bank grew by 47 percent in the six months of the year 2018 the shareholders have not been given any benefit as the Bank informed that the board of directors of the bank has not recommended any cash, dividend, bonus issue, right issue or any other entitlement.
The Banking sector experts expressing their surprise on the non-recommendation of dividend, bonus and any other benefit smell a rat. They said that the bank BOD might want to hide extravagance at the end of the year when full year’s profit will be declared.
The bank BOD may attempt to avoid to extend due share of the profits to the shareholders in order to benefit the few executives of the bank or brush some dirt under the carpet, they said.