NATIONAL BANK OF PAKISTAN

THE BANK YOU

TRUST

H A L F Y E A R L Y

R E P O R T

J U N E 2 0

2 3

TABLE OF CONTENTS

•

Corporate Information

2

•

Unconsolidated Financial Statements

3

Directors' Report to the Shareholders

4

Independent Auditors' Review Report

9

Unconsolidated Financial Statements

10

•

Consolidated Financial Statements

44

Directors' Report to the Shareholders

45

Consolidated Financial Statements

46

1

CORPORATE INFORMATION

Board of Directors

Chairman

Mr. Ashraf Mahmood Wathra

Directors

Mr. Farid Malik, CFA

Mr. Ahsan Ali Chughtai

Mr. Ali Syed

Mr. Amjad Mahmood

President &CEO (A)

Mr. Nasim Ahmad

Mr. Rehmat Ali Hasnie

Audit Committee

Chairman

Mr. Ahsan Ali Chughtai

Mr. Farid Malik, CFA

Mr. Ali Syed

Mr. Amjad Mahmood

Mr. Nasim Ahmad

Chief Financial Officer

Mr. Abdul Wahid Sethi

Company Secretary

Syed Muhammad Ali Zamin

Auditors

A.F. Ferguson & Co.

Chartered Accountants

BDO Ebrahim & Co.

Chartered Accountants

Legal Advisor

Khalid Anwer & Co.

Advocates and Legal Consultants

Registered & Head Office

NBP Building

I.I. Chundrigar Road, Karachi, Pakistan.

Phone: 92-21-99220100 (30 lines),

92-21-99062000 (60 lines)

NBP Call Center: 111-627-627

Registrar & Share Registration Office

CDC Share Registrar Services Limited

CDC House, 99-B,Block-B,

S.M.C.H.S., Main Shara-e-Faisal

Karachi-74400, Pakistan.

111-111-500

Website

www.nbp.com.pk

2

Unconsolidated Condensed Interim Financial Statements

For the half year ended June 30, 2023

3

Directors' Report to the Shareholders

Standalone Financial Statements

Dear Shareholders,

On behalf of the Board of Directors "the Board", we have the pleasure of presenting to you, the condensed interim standalone financial statements of the Bank for the half-year ended June 30, 2023. These financial statements have been reviewed by the Bank's independent external auditors.

Economic Environment

On the global front, the economic activity in major advanced economies is still showing signs of weakness, mainly due to the continuation of monetary tightening measures. Inflation has fallen in some economies due to lower commodity prices, but food and services prices continue to rise, contributing to persistent high inflation. Monetary tightening measures are still in place.

During the six-months period under review, Pakistan's economy also remained confronted with broad based challenges While PKR depreciated by ~25%, the State Bank of Pakistan raised the policy rate by a cumulative 600 bps since Dec'22 before keeping the same unchanged at 22% in July. This uncertainty has lately started showing some signs of improvement as several important developments have influenced the short term macroeconomic outlook. Pakistan has secured a nine-monthStand-By Arrangement 'SBA' with the IMF that has helped address immediate external sector stability concerns by supporting the foreign exchange reserves. With disbursement of the first tranche under the SBA and $3 Bn in bilateral support, the SBP's FX reserves increased from $4.5 Bn at end June 2023 to $8.2 Bn as of July 21, 2023. CPI inflation has started moderating from its peak of 38 percent YoY in May 2023 to 29.4 percent in June. The central bank expects YoY inflation to remain generally on a downward trajectory due to subdued domestic demand amid tight monetary policy stance, and favourable outlook for global commodity prices. This outlook, nevertheless, is subject to risks arising from domestic and external shocks. Overall, the latest high-frequency indicators continue to show a weak GDP growth estimates of 0.3 percent in FY23; a sharp decline from around 6 percent growth in the previous two years. Improved business confidence and withdrawal of priority guidance on imports have improved the outlook for manufacturing, construction and allied services. Notwithstanding this improvement, the unfolding impact of accumulated monetary tightening, rupee depreciation, increasing POL prices and expected fiscal consolidation would continue to keep growth range bound.

On the back of improving investors' confidence, the KSE-100 index that remained impacted by the current economic environment during the year but remained relatively resilient, has gained significantly to cross 48,000 points (15% above Dec'22 levels). Pakistan's banking sector has performed well and remained resilient. Deposits for the banking sector stood at PKR 25.5 Trillion at Jun'23, up 13% since Dec'22, while banking sector advances closed at PKR 12.2 Trillion at end of Jun'23, up 2.4% over Dec'22. Spreads have improved on the back of higher average policy rate, albeit with some concerns on asset quality and credit aggravation.

Financial Performance - H1'2023

Amidst the challenges of the prevailing business environment, your Bank has delivered strong financial results for the six-month period ended June 30, 2023. These results demonstrate the resilience inherent in the Bank's business model, effectiveness of the strategic efforts by management, and the commitment demonstrated by our field personnel in these demanding circumstances.

  • Summary

No.

Key Items

June'23

June'22

Better / (Worse)

Amount

%

1

NII

73.1

53.1

20.0

37.7%

▲

2

NFI

19.0

18.4

0.7

3.7%

▲

3

Total income

92.2

71.5

20.7

29.0%

▲

4

Admin Exp.

44.1

35.8

(8.3)

(23.0%)

▲

5

Pre-Prov. Profit

48.1

35.6

12.5

35.0%

▲

6

Provision Charge

0.4

1.7

1.3

76.2%

▼

7

Pre-tax profit

47.7

33.9

13.8

40.7%

▲

8

Tax

21.6

21.7

0.1

0.4%

▼

9

After-tax profit

26.0

12.1

13.9

114.3%

▲

10

EPS (Rs.)

12.2

5.7

6.5

114.3%

▲

4

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National Bank of Pakistan published this content on 29 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 August 2023 10:44:09 UTC.