NBP has reported its earnings (Profit After Tax – PAT) for the second quarter of 2023 (2QCY23) at PKR 15.8 billion, translating to earnings per share (EPS) of PKR 7.42. This represents a substantial increase of 529% compared to the same period in the previous year (2QCY22 EPS: PKR 1.18) and a 40% growth compared to the previous quarter.
The notable year-over-year earnings growth can be attributed to several factors, including a significant increase in Net Interest Income (NII), reversals in provisioning, and a lower effective tax rate. Moreover, the profit before tax showed strong growth, rising by 66% year-over-year and 59% quarter-over-quarter.
Interest Income for the bank reached PKR 240 billion during 2QCY23, marking a substantial 139% increase compared to the same quarter in the previous year and a 25% growth compared to the previous quarter. Concurrently, interest expenses rose by 173% year-over-year and 25% quarter-over-quarter. As a result, the Net Interest Income of the bank amounted to PKR 40.8 billion, reflecting a 49% year-over-year increase and a 25% quarter-over-quarter increase (1HCY23: PKR 73.4 billion, +38% year-over-year).
Non-Interest income saw a significant increase during the quarter, with a 15% year-over-year rise and a substantial 44% quarter-over-quarter growth, totaling PKR 12 billion. This increase was primarily driven by FX (Foreign Exchange), Fee, and Dividend income, which grew by 30%, 10%, and 28% year-over-year, respectively. However, gains on securities declined by 41% year-over-year.
In 2QCY23, the bank recorded provisioning reversals of PKR 329 million, in contrast to a provisioning charge of PKR 589 million during the same period in the previous year. Consequently, the total provisioning charge for 1HCY23 amounted to PKR 405 million (1HCY22: PKR 2 billion).
The bank’s Operating Expenses (OPEX) increased by 20% year-over-year and 8% quarter-over-quarter during 2QCY23, reaching PKR 23.3 billion. This resulted in a Cost/Income ratio of 43.9% in 2QCY23, compared to 50.9% in the same period the previous year.
The effective tax rate for 2QCY23 stood at 47%, compared to 40% in the previous quarter
| PKR in Million | 1HCY23 | 1HCY22 | YoY Change | 2QCY23 | 2QCY22 | YoY Change |
| Interest Earned | 432,546 | 179,496 | 141% | 240,047 | 100,247 | 139% |
| Interest Expense | 359.173 | 128.311 | 184% | 199.299 | 72.885 | 173% |
| Nil | 73,373 | 53,185 | 38% | 40.748 | 27.362 | 49% |
| NFI | 20,928 | 19,446 | 8% | 12.347 | 10.769 | 15% |
| Total Income | 94.3 | 72.631 | 30% | 53.095 | 38.131 | 39% |
| OPEX | 44.858 | 36.49 | 23% | 23.302 | 19.417 | 20% |
| ProlAsIons | 405 | 2.025 | -80% | -329 | 589 | n/a |
| PBT | 49.037 | 34.116 | 44% | 30.122 | 18.125 | 66% |
| Taxation | 21.897 | 21,874 | 0% | 14,275 | 15.596 | -8% |
| PAT | 27.035 | 12.205 | 121% | 15.786 | 2.51 | 529% |
| EPS (PKR) | 12.71 | 5.74 | 7.42 | 1.18 |
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