Research Analyst
Jan 23 - 29, 2012

National Bank of Pakistan (NBP) is the largest, progressive, efficient, and customer focused commercial bank in Pakistan.

NBP has developed a wide range of consumer products to enhance business and cater to the different segments of society.

Some schemes have been specifically designed for the low to middle-income segments of the population. These include NBP advance salary, NBP saiban, NBP kisan dost, and NBP cash n gold.


Administrative expenses 22,003,528
Profit before taxation 16,750,810
Profit after taxation 11,402,801
EPS 6.78

The bank's services are available to individuals, corporate entities, and government. It continues to act as trustee of public funds and as the agent to the State Bank of Pakistan (SBP), it has diversified its business portfolio and is today a major lead player in the debt equity market, corporate investment banking, retail and consumer banking, agricultural financing, and treasury services.

It is showing growing interest in promoting and developing the country's small and medium enterprises and at the same time fulfilling its social responsibilities as a corporate citizen.

The bank has implemented special credit schemes like small finance for agriculture, business and industries, administrator to Qarz-e-Hasna loans to students, self-employment scheme for unemployed persons, and public transport scheme.

NBP has expanded its range of products and services to include shariah compliant Islamic banking products. It is the largest sponsor of sports in Pakistan. It has donated generously to philanthropic causes.

The bank continues its program of ŰOnline Connectivity Services for Network EnhancementÝ (OCSNE), in which branches are being automated, hardware and software is upgraded along with connectivity infrastructure and network management. More than 575 branches have been upgraded so far. NBP has also built an extensive branch network with over 1250 branches in Pakistan and operates in major business centre abroad.

The bank has representative offices in Beijing, Tashkent, Chicago, and Toronto. It has agency arrangements with more than 3000 correspondent banks worldwide.

Its subsidiaries are Taurus Securities Ltd, NBP Exchange Company Ltd, NBP Capital Ltd, NBP Modaraba Management Company Ltd, and CJSC Bank, Almaty-Kazakhstan.

The bankÝs joint ventures are United National Bank (UK), First Investment Bank, and NAFA, an asset management company (a joint venture with NIB Bank and Fullerton Fund Management of Singapore).

National Bank has earned recognition and numerous awards internationally. The bank has taken various measures to facilitate overseas Pakistanis to send their remittances in a convenient and efficient manner.

In 2002, NBP signed an agreement with Western Union for expanding the base for documented remittances. More recently, it has started electronic home remittances project. This project introduces technology based system to handle inward remittances efficiently by ensuring that the bank's branches keep a track of the remittance received from abroad till its final receipt.

In today's competitive business environment, NBP needs to redefine its role and shed the public sector bank image for a modern commercial bank. It has offloaded 23.2 per cent share in the stock market, and while it has not been completely privatized like the other three public sector banks, partial privatization has taken place. It is now listed on the Karachi/Islamabad/Lahore stock exchanges.

Moreover, the bankÝs balance sheet size surpasses that of any of the other banks functioning locally. During the nine months 2011, the pre tax profit was Rs16,751 million which is slightly higher than the corresponding period last year. Earning per share (EPS) stood at Rs6.78 compared to Rs6.76 of corresponding period last year. Pretax return on equity stood at 21.4 per cent whereas pretax return on assets was 2.2 per cent. Cost to income ratio was 48 per cent. The bankÝs net interest income increased Rs3,597 million or 5.5 per cent. Noninterest markup income climbed Rs1,787 million or 15.7 per cent. The administrative expenses soared 12.6 per cent.

Nonperforming loans (NPL) increased Rs32 billion and it included element of circular debt/ financing of public sector enterprises (PSEs). Deposits at Rs798 showed declining trend as the bank offloaded expensive remunerative deposits. Advances surged Rs36 billion.


SEPT 30, 2011
DEC 31, 2010
Lending to financial institutions 22,629,966 23,025,156
Investments 251,624,886 301,323,804
Advances 513,240,133 477,506,564
Borrowings from financial institutions 29,523,003 20,103,591
Deposits and other accounts 798,341,207 832,151,888