NBP Reports Robust Profit Growth Amid Strategic Investments

Karachi: National Bank of Pakistan (NBP) held a corporate briefing today, revealing a significant turnaround in its financial performance. The bank reported a profit after tax of Rs22.02 billion, a stark contrast to a loss of Rs10.36 billion during the same period last year. This translates into an earnings per share (EPS) of Rs10.35 for the outgoing quarter, contributing to a first half cumulative profit of Rs43.47 billion and an EPS of Rs20.43 for the current fiscal year.

During the briefing, NBP highlighted that its floater Pakistan Investment Bonds (PIBs) constituted 75% of the total PIBs portfolio for the first half of the calendar year, a slight decrease from 79% in 2024. Meanwhile, the bank’s T-Bill portfolio saw an increase to 28.7%, up from 26% last year, with the overall investment portfolio’s duration averaging 2.75 years.

NBP’s management confirmed that the repricing of floater PIBs is proceeding as planned, with most adjustments completed and the rest expected by the third quarter of the current calendar year. Additionally, pension expenses are projected to range between Rs9-10 billion for the year.

The bank also reported Rs6.9 billion in realized capital gains from equity investments, which have been moved to Other Comprehensive Income (OCI) under IFRS 9, up from Rs2.5 billion in the first half of the previous year.

As of June’s end, NBP’s Capital Adequacy Ratio (CAR) stands robust at 27.28%. The bank’s Current Account saw a notable growth of 41.7% compared to December 2024 levels, with management aiming to sustain this upward trajectory.

In a bid to strengthen its operational infrastructure, NBP has increased spending on IT and revamped 250 of its branches. The bank is also in the process of launching new products to further enhance its service offerings.