NBP’s share shines at stock market Staff Report/Daily The Pak Banker ISLAMABAD The share of National Bank of Pakistan has shown an astoundingly good growth at the stock market in the last couple of months. On Tuesday the NBP share mounted to 57 rupees, from 34 rupees two months ago when the share was opened after payment of dividend and bonus for the 2012. The investors traded 2.383 million shares of the National Bank of Pakistan on Tuesday that led to 2.51 rupees in the value of the share of the bank. A majority of the banks witnessed selling pressure and lost value on Tuesday, but the NBP was among the four banks that showed a strong strength and gained value. On Wednesday the NBP share further edged up to about 59 rupees. Sources in NBP said the NBP has given an impressive dividend to the shareholders for the year 2012 because of good financial performance of the bank. Sources in NBP said that JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of National Bank of Pakistan (NBP) at ‘AAA/A-1+’ (Triple A/A-One Plus) with ‘Stable’ Outlook. The credit ratings assigned to NBP take into account standalone financial strength of the bank as reflected by market share of 13.7% in terms of domestic deposits, adequate liquidity and capitalization levels. Ratings also incorporate the sovereign ownership of the bank, the outstanding guarantee of the Government of Pakistan (GoP) as security against deposits and the bank’s status as treasury to the GoP. This rating is the result of the good performance of the bank and it would further promote the business of the NBP. Sources said that contrary to the banking industry’s trends wherein the banks have consolidated their loan portfolios, NBP has depicted growth in lending activities and the growth was manifested in the corporate and consumer loan book. According to sources, the Board of Directors’ of National Bank of Pakistan have approved a payout of 15 % Bonus shares and 70% (Rs. 7 per share) cash dividend to the shareholder’s as final dividend for the year 2012 which translates into payout ratio of 97.2%, the highest return to investors when compared with the other leading banks. The Central bank reduced its policy rate by 250 bps in 2012 making reduction of 450 bps in the last 15 months. The State Bank of Pakistan increased the minimum profit rate on deposit from 5% to 6%. Due to these factors the bank’s interest margin like all other banks remained under pressure. This reduction was partially offset through volume growth and improving deposit mix. After tax profit stood at Rs. 16.2 billion consequent to the adjustment in discount rate. Total assets of the bank increased to Rs.1.31trillion at the year end, up by 14% from year end 2011, an appreciable growth given the competition and growth in overall banking sector. The bank’s total deposits increased by Rs. 110 billion or 12%. Despite the economic challenges the bank’s non-performing loans (NPL) remained at the year 2011 level with NPL ratio improving to 12.2% from 14.9% last year. End
Posted on: Wed, 24 Jul 2013 19:47:02 +0000
Trending Topics
Recently Viewed Topics
© 2015