Karachi (PR): The Board of Directors of National Bank of Pakistan in their meeting held on February 26, 2015 at the Bank’s Head Office Karachi approved the financial statements of the bank for the year ended December 31, 2014.
The Board have proposed final cash dividend of Rs.5.5 per share (55%) for the year ended December 31, 2014. This will be presented for approval in the forthcoming Annual General Meeting of the bank by the shareholders. This translates into 86 % dividend payout of the bank’s distributable profit for the year 2014 (after statutory reserve allocation) and is the highest in the banking industry. This high payout shows bank’s strong capital position with continuous focus on increasing stakeholder value by capitalising on opportunities to drive strong performance for the organisation and even higher payouts to the shareholders in the years ahead. Profit before tax increased by 211 % in 2014 and stood at Rs. 22 billion. Profit after tax increased by 173% from Rs. 5.5 billion in year 2013 to Rs. 15 billion in year 2014. This profit after tax represents a return on average assets (RoA) of 1.1 %, compared to the RoA of 0.4 % in 2013. Earnings per share were Rs. 7.06 in year 2014 as against Rs. 2.59 of last year, an increase of 173%. Cost to income ratio has improved to 0.52 from 0.57 in 2013. Net interest income increased from Rs. 38.2 billion in 2013 to Rs. 44.2 billion in 2014 reflecting an increase of 16% due to balance sheet re-profiling and growth. Non-interest income increased by 23% from Rs. 25.6 billion in 2013 to Rs.31.5 billion in 2014. The increase in non-interest income was primarily due to higher capital gains and growth in other income streams. Total deposits increased by 12% from Rs. 1,101 billion at December 31, 2013 to Rs.1, 234 billion at December 31, 2014. The current and savings account (CASA) ratio was 72% at December, 2014 compared to 69% at December 31, 2013 which helped in reducing the cost of funds and in improving profitability of the bank. Net NPL ratio (after provisions) improved to 3.62% from 4.21% at December 31, 2013. Provisions were lower by 39% in 2014 due to realization of some good recoveries from non-performing loans. 2014 was a year in which the bank focused on further strengthening businesses, network, technological capabilities and other operating and financial parameters. Our strong and diversified franchise, large distribution network, healthy capital position and sustained improvements in balance sheet & profitability profile give us the ability to leverage opportunities for profitable growth. In 2015 some initiatives include Core Banking Application roll out in 1100+ branches, ATM expansion, mobile banking, branchless banking and corporate internet banking to utilize maximum benefit of automation and facilitating NBP customers with enhanced services.