Karachi: On behalf of the Board of Directors, the National Bank of Pakistan (NBP) has released its condensed interim standalone financial statements for the nine months ending September 30, 2024. The report showcases a mixture of challenges and robust growth, underlining the Bank's resilience in a fluctuating economic landscape.
The period witnessed a modest GDP growth of 2.4% in FY'24, up from a significant decline in the previous fiscal year. This improvement stems largely from agricultural contributions and a slight increase in Large Scale Manufacturing. According to information available from the Pakistan Stock Exchange (PSX), the nation's economy shows signs of broader stabilization, supported by a conducive global economic environment and domestic monetary policies that include a substantial 450 basis point cut in the policy rate by September 2024.
In the financial sector, the NBP detailed a performance marked by both achievements and hurdles. The Bank's Net Interest Income saw a decrease to PKR 105.17 billion, down by 13% from the previous year, while Non-Fund Income surged by 70%, buoyed by significant increases in capital gains and improvements in fee, commission, and foreign exchange incomes.
Despite increased operating costs, which rose by 19% due to inflationary pressures, the Bank managed a pre-tax profit of PKR 20.50 billion, although this marked a sharp decline from PKR 70.60 billion in the prior year. The after-tax profit stood at PKR 9.03 billion, reflecting a steep drop of 76% compared to last year.
The Bank's investments grew by 5.7%, with a strategic focus on short-term maturity securities. This was part of a broader risk management strategy that seems to be paying dividends in the current rate environment.
Furthermore, the Bank has been maintaining strong liquidity, evidenced by a healthy increase in total deposits and a robust Capital Adequacy Ratio, positioning it well against potential economic shocks. The Bank also highlighted its compliance efforts, particularly in its New York branch, which remains under close oversight following directives from U.S. financial regulators.
Looking ahead, the NBP remains optimistic about the future, expecting to benefit from continued economic stability and growth in key sectors. This outlook is bolstered by Pakistan's improved economic indicators and the Bank's strategic initiatives aimed at promoting financial inclusion and extending digital financial services.
The Bank's directors extended their appreciation to the employees, stakeholders, and regulatory bodies for their ongoing support, which has been crucial in navigating the challenges of the past nine months. As Pakistan continues on a path of economic recovery and stability, the NBP is poised to play a pivotal role in fostering sustainable economic growth and resilience.