The National Bank of Pakistan (NBP) recorded pre-tax profit of Rs 6,403 million for the first quarter of 2011, which was marginally higher than corresponding period of last year. The bank's earning per share stood at Rs 3.14, almost at the same level as the corresponding period of last year. The bank's pre-tax return on equity stood at 25.4 percent, whereas pre-tax return on assets was at 2.5 percent.
According to a press release issued by the bank here on Tuesday, the board of directors of NBP in the meeting held on April 26, 2011 at the Bank's Head Office here approved the financial statement of the bank for the three months' period ended on March 31, 2011. Pakistan's economy is still showing signs of weakness with high inflation, low tax-to-GDP ratio, energy shortage, rising fuel prices and low business activity are all adding pressure on business performance.
The Bank's net interest income increased by Rs 894 million or 8.9 percent from corresponding period of last year. Non-interest mark-up income decreased by Rs 343 million or 8.6 percent compared to corresponding period of last year, mainly because of lower capital gains on account of settlement of NIT Units in 2010. The commission income remained stagnant due to downward revision in commission rate on government transactions. Administrative expenses increased in line with inflation and salary increases.
Deposits registered a decline of Rs 73.1 billion from year-end December 2010 mainly due to shedding off expensive deposits. Compared to March 2010, increase in deposit was Rs 45 billion. Advances increased by Rs 7.0 billion compared to year-end December 2010 mainly in corporate and agriculture sector. NBP will continue to focus on increasing low cost deposits, improvement in the quality of assets and to further diversify its products and markets to further improve its various income streams, the press release added.-PR
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