National Bank of Pakistan has yet again surpassed analyst expectations by posting stellar half-yearly results for the year 2014. NBP posted profit after tax (PAT) of Rs 8.13 billion, translating into earnings per share (EPS) of Rs 3.82, showing 42 percent growth in EPS compared to the same period last year.
NBP achieved these results on the back of lower provisioning charges (down Rs 2.5bn from Rs 7.4bn in the same period last year) and greater non-mark-up/interest income (up 19 percent YoY to Rs 15.4bn compared to Rs 12.9bn last year). NBP posted 1HCY14 Profit before Tax (PBT) of Rs 12.3 billion, an increase of 63 percent from the corresponding period last year when it stood at Rs 7.55 billion.
The Bank's strategy to modernise and invest in product development combined with a high-dividend payout history has convinced analysts to develop a bullish view of its stock, which is currently considered by most as an undervalued scrip. The stock price closed at Rs 57.84/share on September 1, with majority of the analyst community being positive about the company's outlook for the second half of 2014.-PR
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NBP: 1H2014 Result Highlights
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PKR (mn) 1H2014 1H2013 YoY 2QCY14 YoY QoQ
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Markup Earned 53,682 49,580 8% 28,426 11% 13%
Markup Expensed 34,210 29,554 16% 17,579 22% 6%
Net Interest Income 19,472 20,026 -3% 10,847 -3% 26%
Provision/(Reversal) 2,514 7,438 -66% 1,879 -75% 58%
Non-Interest Income 15,453 12,994 19% 9,392 27% 55%
Non-Markup Expenses 20,133 18,032 12% 10,833 19% 16%
PBT 12,277 7,551 63% 7,867 143% 78%
Tax 4,149 1,824 128% 2,883 435% 128%
PAT 8,128 5,727 42% 4,984 85% 59%
EPS @ 2,127.51mn shares 3.82 2.69 2.34
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