National Bank profits increase 3 percent YoY in first half
LAHORE: National Bank announced its 1H earnings on Thursday, reporting profits of Rs 8.1bn (diluted EPS Rs 4.81) an increase of 3 percent YoY. In 2Q alone, the earnings remained lower by 9 percent QoQ to Rs 3.9bn (diluted EPS Rs 2.30). The result remained below our expectation, with alarmingly high provisioning expense offsetting high gross income. The company did not announce any payout with the result.
Key highlights for the 2Q include, 1) a substantial increase of 133 percent QoQ in loan losses, with 2Q number coming in at Rs 3.2bn, likely on new accretions in the quarter, 2) a 7 percent QoQ increase in Net Interest Income to Rs 11.7bn, 3) a 69 percent QoQ increase in non interest income driven by higher capital gains and other income and 4) a 23 percent QoQ increase in operating expenditure.