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 Million1HCY231HCY22YoY Change2QCY232QCY22YoY Change
Interest Earned432,546179,496141%240,047100,247139%
Interest Expense359.173128.311184%199.29972.885173%
Total Income94.372.63130%53.09538.13139%
EPS (PKR)12.715.74 7.421.18 
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