Net profit stood at Rs17.71 billion in 2011 against Rs17.74 billion in the same period a year ago, according to a notice of consolidated profits sent to the Karachi Stock Exchange on Tuesday. The result was 5% higher than market expectations as analyst estimated the bottom-line, on average, to stand around the Rs16.9 billion mark.
However, the result did spark excitement as the bank declared an all time-record high final cash dividend of Rs7.5 per share and a 10% bonus shares along with the result.
Net interest income rose by 8% on a yearly basis, however, net interest margins likely remained flat, while higher average earning assets – up by 3% during January to September 2011 – led the growth, said Global Securities analyst Syed Saquib Ali.
Non-markup income went up by 10% with 59% higher dividend income and 42% jump in income from forex operations driving the growth, added Ali.
Provisions and write off declined by 11% on a yearly basis to Rs9.6 billion in 2011 mainly on account of higher forced sale value benefit available to the bank and lower impairment on equities. Forced Sale Value (FSV) is the value which reflects the possibility of price fluctuations and can currently be obtained by selling mortgaged or pledged assets in a forced or distressed sale condition, according to the State Bank of Pakistan.
On a quarterly basis, NBP did post an encouraging earnings growth of 83% during the final quarter of 2011 to reach net profit of Rs6.19 billion, making almost 35% of the bank’s total profits in the last three months of the year.
Published in The Express Tribune, March 7th, 2012.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ