Research Analyst

June 02 - 08, 2008

National Bank of Pakistan (NBP) possesses a unique position in the domestic banking industry of the country.

NBP is listed with all stock exchanges inside Pakistan and has been assigned to undertake Government Treasury operations. It is the largest contributory agent of Government and Semi-Government financial requirements. It acts as an agent of the Central Bank wherever the State Bank does not have its own branch. NBP provides wide facilities of public sector employees. NBP occupies a unique position in the financial sector of Pakistan.

NBP mainly deals in Corporate, Investment, Retail, Commercial and Islamic banking. The bank also provides services as trustee to National Investment Trust (NIT) including safe custody of securities on behalf of NIT. During the year, the bank has increased its authorized capital from Rs 7,500m to Rs 10,000m as approved by share holders. NBP also enjoys the highest credit rating amongst Pakistani banks. JCR-VIS credit rating Co. Ltd upgraded stand alone medium to long term rating of NBP to AAA from AA+. Moody maintained NBP'S financial strength rating at D- thereby recognizing the internal strength and leadership position of the bank. Currently NBP is operating 1,243 branches inside Pakistan and 18 branches outside Pakistan. There are 14,079 employees working for the bank.


The bank has witnessed enormous growth in FY07.



Total Assets






Total Advances




Total Deposits




Administrative Expenses


Non-performing loans






Total assets of NBP increased by 20% from Rs 635,133m recorded in FY06 to Rs 762,194m in 2007. Recently the bank has shown Rs 738,286m in 1Q2008. NBP advances in FY06 were Rs 316,110m & in 2007 it were Rs 340,677m they increased by 7.77 %. Recently the bank has shown Rs 361,636m in 1Q2008. In 2007 we saw a high investment of NBP from 139,947m in FY06 to Rs 210,788m with in increased of 50.6%. Recently the bank has shown Rs 188,773m in 1Q2008. Deposits have increased to Rs591, 907m in 2007 from Rs 501,872m in FY06 indicating an increase by almost 18%. Recently the bank has shown Rs 564,476m in 1Q2008. However Lending decreased by 6.72% in FY07 from Rs 2,3013m in FY06 to Rs 2,1465m in2007. Recently the bank has shown Rs 24,319m in 1Q2008. Borrowings too have decreased from Rs 1,1704m in FY06 to Rs 1,0886m in FY 07 with almost 7% reduction. Recently the bank has shown Rs 17,272m in 1Q2008. In FY06 Administrative expense were recorded Rs 1, 3443m, it has increased to Rs 1,4206m in 2007 with an increase of 5.67%. The profit earned by NBP amounted to Rs 1,7022m in FY06 to Rs 1,9034m earned in FY07 with an increase of 11.82 %. In FY07 saw an increase of earning per share to Rs 23.34 from Rs 20.88 in FY 06. Thus, EPS increased by 11.78% which is significant. However, ADR ratio decreased by 8.62% in FY07 & Non performing loans increased by 6.67% to Rs 34,413m in FY07 from Rs 32,260m in FY06.


NBP was awarded "The Best Domestic Bank" consecutively in 2001 and 2002 by the renowned journal "The Banker UK". It is also the only domestic bank of the country which has been compared and included by prestigious Journal "The Asia Week" with other banks in the region. NBP is also the first bank which had started a "Foreign Exchange Company" in order to facilitate the general masses, regularize the inflows of foreign money and control the undesirable blackmailing of private foreign exchange companies in the country. Currently, the bank has shown robust growth in the market in terms of Total Assets, Advances, Deposits and investments. The bank increased its PAT and EPS which is significant. However, there has been a reduction in lending's and ADR mainly due to increase in Non Performing Loans. NBP has been able to produce highly diversified products in the markets. Their main focus is to target common people and to give them maximum facilities. Products such as "Presidents ROZGAR scheme" for unemployed people, NBP SAIBAAN for mortgage business and NBP Advance Salary products continue to grow in 2007-08. Currently, NBP is focusing on Small and Medium Enterprises (SMEs) for generating higher yields. NBP also remains the largest agriculture lender in the banking sector in agriculture with approximately 300,000 borrowers and gross disbursement of Rs 28 billion during FY 2006-07. The bank is also providing a unique product under the banner of KISAN DOST.

National Bank of Pakistan has also created risk management group at head office and as well as regional level to save the best interests of the bank and enhance the chances of investments. National bank engaged Sidat Hyder Morshed Associates (Pvt.) Ltd. to develop a business continuity plan (BCP) for its head office, regional offices and branches. The primary objective of this business continuity plan is to enable NBP to survive a disaster and to resume its core business and IT operations with in a reasonable time frame.