NBP announced earnings on Wednesday for 1QCY19 at PKR 4.3bn (EPS: PKR 2.00), depicting a YoY decline of 16% and sequential uptick of 12%.
An additional super tax was booked this quarter dampening profitability. PBT has seen a 13% YoY/35% QoQ surge.
NII of the bank settled at PKR 15.6bn, increasing by an impressive 10% YoY. However the bank’s NII declined 9% QoQ which we attribute to a seasonal trend observed for NBP which usually shows an NII downturn during 1Q and 3Q of the year.
NFI saw a 35% YoY uptick led by a 3.2x and 5.4x uptick in dividend income and FX income respectively. On a sequential basis lower capital gains (-86% QoQ) and lower fee income (-31% QoQ) were the culprits behind a 38% QoQ decline in NFI.
The bank continued to book heavy provisioning expenses – PKR 2.2bn during 1QCY19. However this is 66% lower QoQ.
OPEX clocked-in at PKR 13.3bn, increasing minutely by 3% YoY whilst declining 26% QoQ..
Effective tax rate for 1QCY19 was 52% compared to 35% in SPLY.