National Bank of Pakistan (NBP) has posted a consolidated profit after tax of Rs4.46 billion (EPS: Rs2.09) for 3QCY15 as compared to net profit of Rs4.2 billion (EPS: Rs2.08) for the corresponding quarter last year. This has effectively taken 9MCY15 earnings of the bank to Rs12.3 billion (EPS: Rs5.78) as compared to earnings of Rs13.6 billion (EPS: Rs6.41) for 9MCY14.
Key 9MCY15 result highlights included: 1) NII up 16%YoY on controlled cost of funding, 2) provisioning of Rs8.0 billion as compared to expense of Rs2.9 billion for corresponding period of last year, 3) non-interest income growth of 19% driven by capital gains (up 69% YoY) and (iv) increase in expenses by 5%YoY.
The sequential uptick in profitability (12%QoQ) was primarily on normalization of tax rate to 35% post adjustment of one-time super tax (effective tax rate of 60% for 2QCY15). Despite considerable decline in non-interest income (down 29% QoQ due to lower capital gains), 3QCY15 result brings some respite on the asset quality side with provisions going down by 51%QoQ