The Board of Directors of National Bank of Pakistan in their meeting on Thursday 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 percent) 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 percent 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 percent in 2014 and stood at Rs 22 billion. Profit after tax increased by 173 percent 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 percent, compared to the RoA of 0.4 percent in 2013. Earnings per share were Rs 7.06 in year 2014 as against Rs 2.59 of last year, an increase of 173 percent. 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 percent due to balance sheet re-profiling and growth. Non-interest income increased by 23 percent 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 percent 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 percent at December, 2014 compared to 69 percent 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 percent from 4.21 percent at December 31, 2013. Provisions were lower by 39 percent in 2014 due to realisation of some good recoveries from non-performing loans.-PR
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