National Bank Pakistan profit tumbles

National Bank of Pakistan (NBP) on Friday posted a significantly weak profit after tax (PAT) of Rs225 million for the third quarter of this calendar year (earning per share: Rs0.11), down 95 per cent year-on-year basis and 92 per cent quarter-to-quarter basis.According to analysts the nine-month earnings clocked in at Rs6.2 billion (EPS: Rs2.94), down 48 per cent year-on-year basis. The result was well below the market expectations.They said the main reason for this downfall was massive write-offs and higher provisioning by the banks.The bank’s net interest income (NII) remained under pressure and declined by 15 per cent year-on-year basis and 26 per cent on quarter-to-quarter basis.“Similar to 2Q2013, NBP booked higher provisions and write off of Rs4.5bn which put an additional dent on the bottom line. Further pressure came in from lower non interest income (30 per cent on quarter-to-quarter basis) and higher operating expenses (up 22 per cent year-on-year basis),” said JS Research report.