{"id":4171,"date":"2025-03-06T11:32:20","date_gmt":"2025-03-06T06:32:20","guid":{"rendered":"https:\/\/pkfin.kotenterprises.dev\/?p=4171"},"modified":"2025-03-06T11:32:20","modified_gmt":"2025-03-06T06:32:20","slug":"nbp-reports-massive-rs-56-7-billion-profit-before-tax-in-2024","status":"publish","type":"post","link":"https:\/\/pkfin.kotenterprises.dev\/?p=4171","title":{"rendered":"NBP Reports Massive Rs. 56.7 Billion Profit before Tax in 2024"},"content":{"rendered":"

KARACHI:<\/strong> The Board of Directors of National Bank of Pakistan (NBP)<\/a> convened on February 28, 2025, to approve the audited annual financial statements for the year ended December 31, 2024. The bank reported a pre-tax profit of Rs 56.7 billion, despite incurring an extraordinary cost of Rs 68.0 billion due to compliance with the Supreme Court of Pakistan\u2019s ruling on pension litigation.<\/p>\n

NBP generated a gross mark-up income of Rs 1,089.4 billion, solidifying its position among Pakistan\u2019s top revenue-generating banks. After paying Rs 918.5 billion to depositors, the bank\u2019s cost of funds improved to 15.84 percent. Net interest income increased by 1.3 percent year-on-year (YoY) to Rs 170.9 billion, with a net spread of 2.37 percent. Non-mark-up\/non-interest income saw a substantial 61.1 percent surge to Rs 65.4 billion, demonstrating the bank\u2019s effective revenue diversification strategy.<\/p>\n

Operating expenses reached Rs 119.8 billion, reflecting a 17 percent YoY increase. The bank\u2019s after-tax profit stood at Rs 26.9 billion<\/a>. Since 2017, NBP has retained its entire profits to safeguard capital adequacy, ensuring financial stability and long-term sustainability in compliance with regulatory expectations.<\/p>\n

In light of its strengthened financial position, the Board has recommended a final cash dividend of Rs 8 per share (80%) for 2024, subject to shareholder approval at the upcoming 76th Annual General Meeting. This dividend aligns with the bank\u2019s commitment to enhancing shareholder value while maintaining robust capital adequacy as a domestic systemically important bank.<\/p>\n

NBP has also gained recognition from Standard & Poor\u2019s<\/strong>, ranking among the top 10 best-performing stocks in 2024 across Asia Pacific lenders. With increased investor confidence, its market capitalization has surged to approximately Rs 175 billion, marking an impressive 170 percent growth since February 2024.<\/p>\n

Strong Capital Position and Regulatory Compliance<\/strong><\/h2>\n

NBP successfully implemented IFRS 9<\/strong> in 2024, ensuring compliance with State Bank of Pakistan (SBP) regulations. Despite a net tax impact of Rs 12.0 billion on its opening equity, the bank strengthened its financial indicators. Total eligible capital grew by 27.4 percent to Rs 479.8 billion, while Common Equity Tier 1 (CET 1) ratio<\/strong> and Capital Adequacy Ratio (CAR)<\/strong> improved to 20.51 percent and 27.80 percent, respectively. The bank\u2019s Liquidity Coverage Ratio<\/strong> rose to 206 percent (from 176% in 2023), and Net Stable Funding Ratio<\/strong> increased to 174 percent (from 159% in 2023).<\/p>\n

On the balance sheet side, gross loans and advances<\/strong> reached Rs 1,672.8 billion, reflecting a 2.5 percent YoY increase<\/strong>. The bank\u2019s investments (at cost) amounted to Rs 4,475.4 billion, with a carrying value of Rs 4,612.3 billion. With a Non-Performing Loan (Stage-3) coverage ratio of 83.8 percent<\/strong>, the bank maintained credit loss allowances of Rs 225.8 billion. Net assets grew by 19.4 percent YoY to Rs 457.0 billion<\/strong>, translating to a book value per share of Rs 215.<\/p>\n

Total deposits stood at Rs 3,865.6 billion<\/strong>, with 94.2 percent coming from stable customer deposits<\/strong>. Current deposits made up 50.4 percent of total deposits<\/strong>, while the Current and Savings Account (CASA) ratio remained high at 79.5 percent<\/strong>. NBP also emerged as the top agricultural credit performer bank<\/a> in FY\u201923 and FY\u201924<\/strong> among large banks, according to SBP ratings. SME financing<\/a> grew to Rs 99.0 billion<\/strong>, reflecting a 12 percent YoY increase<\/strong>.<\/p>\n

Islamic Banking Expansion<\/strong><\/h2>\n

NBP\u2019s Islamic banking network expanded<\/a> significantly in 2024, adding over 100 new Islamic Banking Windows (IBWs)<\/strong>, bringing the total to 251<\/strong>. NBP Aitemaad\u2019s total assets surged to Rs 333.4 billion, reflecting a record 137.9 percent YoY growth<\/strong> from Rs 140.2 billion in 2023. The bank also launched NBP Aitemaad Advance Salary<\/strong>, an Islamic alternative to its flagship retail lending product, as part of its commitment to Shariah-compliant banking.<\/p>\n

In line with the Federal Shariat Court\u2019s directive<\/strong> and SBP\u2019s 2027 mandate<\/strong> for a complete transition to Islamic banking, NBP plans to establish another 100 IBWs and convert over 100 conventional branches<\/strong> to Islamic banking in 2025.<\/p>\n

Commitment to ESG and CSR Initiatives<\/strong><\/h2>\n

NBP has integrated Environmental, Social, and Governance (ESG) principles<\/strong> into its decision-making framework. In 2024, the bank invested Rs 150 million in Corporate Social Responsibility (CSR) initiatives<\/strong> and allocated Rs 30.1 billion to green financing projects<\/strong>.<\/p>\n

CEO\u2019s Vision<\/strong><\/h2>\n

Commenting on the bank\u2019s performance, Rehmat Ali Hasnie, President & CEO of NBP<\/strong>, emphasized the bank\u2019s pivotal role in economic development and financial well-being. He reiterated NBP\u2019s commitment to supporting individuals and businesses, particularly in the SME, commercial, and rural sectors.<\/p>\n

\u201cThis deep-rooted sense of responsibility defines the bank\u2019s inclusive mission and its enduring commitment to its tagline: Ek Azm Aur Ek Pehchan \u2013 National Bank Aur Pakistan<\/strong>,\u201d he added.<\/p>\n","protected":false},"excerpt":{"rendered":"

KARACHI: The Board of Directors of National Bank of Pakistan (NBP) convened on February 28, 2025, to approve the audited annual financial statements for the year ended December 31, 2024. The bank reported a pre-tax profit of Rs 56.7 billion, despite incurring an extraordinary cost of Rs 68.0 billion due to compliance with the Supreme […]<\/p>\n","protected":false},"author":1,"featured_media":1616,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[1299],"tags":[],"class_list":["post","format-standard"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t