The National Bank of Pakistan (NBP) announced cash payout after a period of five years as per company filing to the exchange.
The NBP announced a cash payout of Re1 per share. This is the first time that the bank has declared cash dividend since 2016 due to the likely impact of pension case, despite some positive signals, it remained a cause of concern. The first priority of directors was to maintain continuity of the bank’s business which is very much dependent upon the capital base of the Bank. The BoD is conscious of the fact that the shareholders look forward to receiving dividend.
In 2021, the NBP recorded profit before tax amounting to Rs52.9 billion the highest ever in history of the Bank. Whereas, due to a significant impact of extraordinary item amounting to Rs9.8 billion, the after-tax profit closed at Rs28.0 billion which is 8.3 percent down YoY.
For the year 2021, gross mark-up/interest income closed 10.1 percent lower YoY at Rs231.9 billion (2020: Rs257.8 billion); whereas the interest/mark-up expense amounted to Rs134.3 billion, of which Rs87.8 billion or 65.4 percent was paid to the depositors. Consequently, net interest/mark-up income “Nil” closed at Rs97.62 billion which is 6.3 percent lower, YoY.
Despite a lacklustre trade & business activity during the year, the Bank succeeded in maintaining its non-mark-up / interest earning “NFl” stream that closed at Rs36.9 billion (2020: Rs36.1 billion). Accordingly, total revenue of the Bank closed 4.0 percent down YoY at Rs134.6 billion (2020: Rs140.2 billion).