NBP announces 25 percent bonus, 75 percent cash dividend for the year 2010

National Bank of Pakistan (NBP) announced 25 percent Bonus and 75 percent (Rs 7.5 per share) cash dividend for the shareholders for the year 2010. NBP Board of Director's meeting held on March 1, 2011, in which board approved the Financial Statements of the Bank for the year ended December 31, 2010.
According to NBP press release year 2010 was a milestone year for the bank as NBP became the first financial institution in the country to surpass the '1.0 Trillion Rupees' mark. Total assets of the bank were at Rs 1.035 trillion at the year end up by 9.5 percent from year end 2009, an appreciable growth in a challenging economic environment.
The pre-tax profit increased by 15 percent from Rs 21.3 billion to Rs 24.4 billion despite making general provision of Rs 1.7 billion against advances and non-repetition of capital gain on NIT Units of Rs 3.9 billion in 2009. The increase is owing to higher core revenues and lower provision charge. Earnings per share however, remained at last year level of Rs 13.05 due to prior year tax reversal of Rs 4.1 billion in 2009.
The top line (operating revenue) increased by 7.8 percent from Rs 56.5 billion in 2009 to Rs 60.9 billion in 2010. Net interest income increased by 15.4 percent or Rs 5.8 billion from the corresponding period last year due to higher balance sheet size and re-profiling of liability side. The bank's total deposits increased by Rs 104.7 billion or 14.4 percent. The bank also managed to increase its CASA deposit ratio from 56 percent last year to 62 percent.
The core revenue from fee business increased by 8 percent attributable to enhanced focus on trade business and higher revenue from general banking. Capital gains are lower by 45 percent mainly due to recording of Rs 3.9 billion capital gain last year on redemption of NIT Units. However, the bank took advantage of higher share prices and was able to realise capital gains of Rs 2.5 billion in 2010 which is higher by Rs 1.4 billion from 2009 capital gains excluding NIT redemption.
Provision charge against advances decreased by Rs 4 billion, from Rs 11.0 billion in 2009 to Rs 7.0 billion in 2010 despite making general provision against advances of Rs 1.7 billion in 2010 to further strengthen the balance sheet. The bank was reaffirmed "AAA" rating by JCR-VIS Credit Rating Company in June 2010. The bank was given away "Bank of the Year" award for the year 2010. The bank has been ranked in "Top 500 banks" in the world by "The Banker Magazine" in its July 2010 edition.-PR