Trade Chronicle May June 2017

TRADE CHRONICLE
Banking & Insurance
The National bank of Pakistan
recorded a pre-tax profit of Rs. 6.7
billion i.e. 7.8% up against Rs. 6.2
billion for the corresponding three
months period of 2016. After-tax
profit for the period was Rs. 4.2
billion i.e. 4.1% higher than Rs. 4.0
billion for the corresponding three
months period of 2016. This
translates into earnings per share of
HBL declares profit
of Rs9.1bn
HBL has declared a consolidated
profit after tax of Rs 9.1 billion for
the first quarter of 2017, with
earnings per share of Rs 6.16. Along
with the results, the Bank declared a
dividend of Rs 3.5 per share (35
percent).
HBL’s balance sheet has grown by
two percent over December 2016 to
reach Rs 2.6 trillion. Despite a
decline in the market, the Bank’s
deposits continued to grow, with
market share rising to 14.2% and
total deposits crossing Rs 1.9
trillion. Domestically, HBL grew its
CASA deposits by Rs 30 billion
during the quarter and the CASA
ratio improved to 87.1%.
Average domestic current accounts
increased by 16% compared toQ1
2016, enabling the Bank to further
reduce its cost of deposits. Lending
activity has remained robust, with
average domestic loans increasing
Rs.1.98 as against Rs.1.90 for the
corresponding quarter of 2016.
Meeting of the Board of Directors
(BoD) of National Bank of Pakistan
(bank) was held recently at Bank’s
Head Office in Karachi in which the
BoD approved the financial
statements of the bank for three
months period ended March 31,
2017.
Bank’s net interest / mark-up
income increased by 2.2% to Rs.
12.3 billion against Rs. 12.0 billion
for Q1 of 2016. This was achieved
through maintaining an efficient
asset-mix of high-yield loans and
investments. Similarly, growth was
by 24% over the first quarter of last
year as all business segments
delivered excellent performance.
The Bank was thus able to overcome
most of the spread compression
caused by low interest rates,
recording net interest income of
Rs20.1 billion.
With excellent performance from
treasury related activities, nonmarkup
income increased by 26% to
R s 8 . 3 b i l l i o n . F e e s a n d
Commissions for the quarter grew
by 9% to Rs4.8 billion with
continued strong performances by
t h e B a n c a s s u r a n c e , a s s e t
management and consumer finance
businesses. HBL’s prudent risk
NBP maintains growth pre-tax
profit up by 7.8pc in Q1
also achieved in non-mark-up /
interest income for the period which
increased by 13.1% YoY to Rs. 7.4
billion.
While the balance sheet footing
dropped by 2% compared to year
end 2016, the bank recorded a
healthy YoY growth in both
deposits and advances. As of March
2017 bank’s deposits amounted to
Rs. 1,588 billion being 25% up
against that of March 2016;
whereas the net advances also
increased to Rs. 648 billion i.e. 17%
up YoY.
management resulted in a reduction
in non-performing loans with
provisions also decreasing by 26%
over the first quarter of 2016. The
Bank’s infection ratio fell further, to
9 . 1 % , w h i l e t h e c o v e r a g e
strengthened, to nearly 92%.HBL’s
reach now includes more than 2,000
ATMs and over 14,800 POS
machines, augmenting its network
of 1,678 branches, to provide access
and convenience to its customers
across Pakistan.
The consolidated Capital Adequacy
R a t i o ( C A R ) a s a t
March2017was15.5%, with the Tier
1 CAR at12.1%, both well above
regulatory requirements. The
Bank’s local credit ratings remain in
the highest possible AAA/A-1+
categories for long term and short
term respectively. During the
quarter, HBL continued to receive
several important awards including
the Best Domestic Bank in Pakistan
by Asiamoney, and the Best Retail
Bank in Pakistan, by The Asian
Banker.
TRADE CHRONICLE - May.~Jun. 2017 - Page # 37