Karachi: On behalf of the Board of Directors of National Bank Modaraba Management Company Limited (NBMMCL), the Management Company of First National Bank Modaraba (FNBM), presented its third quarterly report, including unaudited financial statements for the nine months ending March 31, 2025. Despite facing ongoing economic challenges, the report indicates some stability over the past year, yet highlights persistent hurdles such as high foreign exchange and petroleum rates.

During the reviewed period, FNBM focused on recovery from its classified portfolio, achieving a realized amount of Rs. 9.784 million. Profit on investment, amounting to Rs. 33.716 million, was the primary contributor to the total operating income of Rs. 39.398 million. However, reductions in interest rates have diminished investment margins. The Modaraba incurred expenses totaling Rs. 39.660 million, which included Rs. 27.3 million as finance costs. Consequently, FNBM reported a loss of Rs. 0.265 million before tax.

The immediate priority for FNBM is recovering its non-performing loans (NPLs) and resuming business operations. With support from its parent bank, National Bank of Pakistan (NBP), FNBM anticipates recovering a significant portion of its accumulated losses, primarily due to provisioning charges on NPLs. According to information available from the Pakistan Stock Exchange (PSX), these strategic moves aim to stabilize the financial standing of the Modaraba.

The Board expressed gratitude to certificate holders, clients, Registrar Modarabas, the Securities and Exchange Commission of Pakistan (SECP), and the NBFI & Modaraba Association of Pakistan for their ongoing guidance and support. The Board also acknowledged the dedication and effort of the management and staff in navigating these challenging times.