National Bank Of Pakistan · PSX:NBP
National Bank Of Pakistan — FY2023 Earnings Presentation
33 slides from National Bank Of Pakistan's earnings presentation, Feb 29, 2024
Slide 1: Annual Corporate Briefing
Annual Corporate Briefing February 29, 2024
Slide 2: Entity Information
Entity Information Nature of Business The bank is engaged in providing commercial banking and related services in Pakistan and overseas. Vision To be the Nation’s leading bank enabling sustainable growth and inclusive development. Mission We will achieve our vision by subscribing to the qualities ca
Slide 3: Vision & Mission
Vision & Mission VISION To be the Nation’s leading bank enabling sustainable growth and inclusive development MISSION We will achieve our vision by subscribing to the qualities captured by the word IMAGINE. 3
Slide 4: Key Highlights
Key Highlights With a total asset base of PKR 6.7 Trillion, and accounting for ~14% of total industry assets, NBP is the largest bank in Pakistan in terms of Total Assets. NBP has been designated as a Domestic Systemically Important Bank in the country. Financial Position Profitability Financial Ass
Slide 5: Key Highlights
Key Highlights 75 Years Legacy of Largest Capitalized Bank in A Systemically Important Pakistan With Net Assets of Bank of Pakistan Serving the Nation PKR 383 Bn 2nd Largest Largest Agricultural SME Advances Largest Corporate Sector Advances Advances Portfolio Portfolio Personal Loans Portfolio Port
Slide 6: Balance Sheet – YoY Overview
Balance Sheet – YoY Overview ASSETS 2023 2022 Growth Cash and balances 337.3 248.0 89.3 36.0% Lendings to financial institutions 192.4 31.3 161.2 515.3% Investments 4,403.4 3,477.4 926.0 26.6% Advances 1,398.1 1,230.5 167.6 13.6% Fixed assets 57.0 57.1 (0.1) -0.2% Others 264.5 196.0 68.5 34.9% Total
Slide 7: Balance Sheet Growth
Balance Sheet Growth Total Assets Investments - Net Advances - Gr. Deposits 6,653 3,674 4,403 1,632 5,240 1,439 3,019 3,477 1305 2,666 3,847 1,938 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 ✓ 27% growth from PKR 5,240 Bn ✓ Investments continued to make ✓ Pursuing a prudent loan ✓ 38
Slide 8: Profit and Loss – YoY Overview
Profit and Loss – YoY Overview PKR'Bn Variance Financial Performance 2023 2022 % Amount Mark-up / return / interest earned 1,024.7 503.3 521.3 103.6% Mark-up / return / interest expensed 855.9 386.5 469.4 121.5% Net mark-up / Interest income 168.7 116.8 51.9 44.4% Non interest income 40.6 36.7 3.9 1
Slide 9: Gross Interest Income – Composition YoY
Gross Interest Income – Composition YoY GII +104% 1,024.7 +117% 503.3 231.9 2021 2022 2023 9
Slide 10: Gross Interest Income – Composition YoY
Gross Interest Income – Composition YoY GII Gross Interest Income +104% 1.3 , 1,024.7 27.6 , 0% 3% 221.8 , 22% +117% 503.3 231.9 774.0 , 75% 2021 2022 2023 Adv. Inv. Rev. Repo Oth. Banks 10
Slide 11: Gross Interest Income – Composition YoY
Gross Interest Income – Composition YoY GII Gross Interest Income +104% 1.3 , 27.6 , 0% 1,024.7 3% 221.8 , 22% 0.82, 0% +117% 12.8, 503.3 3% 141.4, 28% 348.3, 69% 231.9 774.0 , 75% 2021 2022 2023 Adv. Inv. Rev. Repo Oth. Banks 11
Slide 12: Interest Expense – YoY Composition
Interest Expense – YoY Composition Int. Exp +121% 855.9 +188% 386.5 134.3 2021 2022 2023 12
Slide 13: Interest Expense – YoY Composition
Interest Expense – YoY Composition Int. Exp Int. Exp. 14.3 , +121% 1% 855.9 365.1 , 43% +188% 386.5 468.7 , 55% 134.3 7.0 , 1% 2021 2022 2023 Dep. Borr. Repo. Forex 13
Slide 14: Interest Expense – YoY Composition
Interest Expense – YoY Composition Int. Exp Int. Exp. 14.3 , 1% +121% 855.9 365.1 , 43% 10.0, 3% 160.9, 209.6, +188% 42% 54% 386.5 468.7 , 5.1, 55% 1% 134.3 7.0 , 1% 2021 2022 2023 Dep. Borr. Repo. Forex 14
Slide 15: Non-Fund Income – YoY Growth
Non-Fund Income – YoY Growth Non Funded Income increased to PKR. 40.6 Bn by 10.7%… +10.7% 40.6 -0.7% 36.9 36.7 2021 2022 2023 15
Slide 16: Non-Fund Income – YoY Growth
Non-Fund Income – YoY Growth Non Funded Income increased to PKR. 40.6 Bn by 10.7%… GII : PKR 1,024.6 Bn +10.7% NFI : PKR 40.6 Bn 40.6 Total : PKR 1,065.3 Bn. -0.7% 36.9 36.7 Not just the highest, but also the only Bank 2021 2022 2023 generating total Value of above PKR 1 Trillion in the Country 16
Slide 17: Non-Fund Income – YoY Composition
Non-Fund Income – YoY Composition Non-Fund Income Non Funded Income increased to PKR. 40.6 Bn by 10.7%… 4.4 , 1.8 , 11% 4% +10.7% 40.6 7.1 , 18% -0.7% 36.9 36.7 5.3 , 13% 2021 2022 2023 22.0 , 54% Fee & Com. Div. Forex Cap. Gain Oth. 17
Slide 18: Non-Fund Income – YoY Composition
Non-Fund Income – YoY Composition Non-Fund Income Non Funded Income increased 4.4 , 1.8 , to PKR. 40.6 Bn by 10.7%… 11% 4% +10.7% 40.6 7.1 , 18% 1.1, 3% 1.7, 5% 7.4, -0.7% 36.9 20% 36.7 21.2, 5.2, 58% 14% 5.3 , 2021 2022 2023 13% 22.0 , 54% Fee & Com. Div. Forex Cap. Gain Oth. 18
Slide 19: OPEX – YoY Increase
OPEX – YoY Increase Cost to Income 209.4 153.5 134.6 50.9% 44.6% 44.7% 93.6 78.2 60.0 2021 2022 2023 Income Cost 19
Slide 20: OPEX – YoY Composition
OPEX – YoY Composition Cost to Income OPEX 209.4 17.5 , 19% 153.5 134.6 7.3 , 50.9% 44.6% 44.7% 8% 93.6 78.2 60.0 12.2 , 13% 56.4 , 2021 2022 2023 60% Income Cost HR Prop. IT Oth. 20
Slide 21: OPEX – YoY Composition
OPEX – YoY Composition Cost to Income OPEX 209.4 17.5 , 19% 153.5 134.6 13.5, 7.3 , 5.1, 17% 50.9% 44.6% 44.7% 8% 7% 48.8, 10.7, 62% 93.6 78.2 14% 60.0 12.2 , 56.4 , 2021 2022 2023 13% 60% Income Cost HR Prop. IT Oth. 21
Slide 22: Provisioning
Provisioning Provisions have increased by 15% YoY….. Prov. +15% +6% 14.5 12.6 11.9 2021 2022 2023 22
Slide 23: Provisioning
Provisioning Provisions have increased by Prov. 15% YoY….. Prov. +15% +6% 14.5 12.6 0.5 11.9 0.6 13.4 Inv. Oth. Adv. 2021 2022 2023 23
Slide 24: Provisioning
Provisioning Provisions have increased by Provisioning 15% YoY….. ➢ Aggressive Provisioning of PKR 14.5 Bn to Prov. +15% strengthen Balance Sheet keeping in view the stressed credit environment. +6% 14.5 ➢ Specific Coverage high at 92%. Total 12.6 coverage high at 103%. 11.9 Prov. 0.5 0.6 2021 2022
Slide 25: Strong Provisioning & Coverage
Strong Provisioning & Coverage NET NPL & Infection Ratio Specific coverage at 92% and total coverage > 100% Infection Ration Net NPL 95% 97% 96% 101% 101% 104% 106% 88% 17.3% 88% 92% 91% 93% 81% 93% 93% 92% 14.7% 14.9% 14.9% 14.3% 14.5% 14.5% 13.5% 252 221 211 221 220 205 205 204 203 205 204 204 192
Slide 26: Profit Before Tax
Profit Before Tax Despite significant provisions, PBT stood at PKR 101.25 Bn – The Highest Ever in the History of the Bank. PBT PKR 101.25 Bn 26
Slide 27: Profit After Tax
Profit After Tax Profit after tax have increased by 70% YoY….. Highest Ever Profit PAT After-Tax 51.8 30.4 70.5% Higher 28.0 EPS : Rs. 24.37 (2022: Rs. 14.29) 2021 2022 2023 27
Slide 28: Profit After Tax
Profit After Tax Profit after tax have increased by 70% YoY….. PAT 51.8 30.4 28.0 2021 2022 2023 28
Slide 29: Equity & Capital Strength
Equity & Capital Strength Capital Actual Reqd. Buffer (bps) CET 1 19.16% 10.0% 916 bps CAR 25.47% 14.00% 1147 bps Leverage 3.12% 3.00% 12 bps RWA Type Dec‘23 Dec‘22 Change Credit 1,070 1,066 4.3 0.4% Market 104 94 10.4 11.1% Operational 304 259 45.8 17.7% Total RWAs 1,479 1,419 60.4 4.3% The Board d
Slide 30: Profitability Ratios
Profitability Ratios EPS– Strong profitability boosts returns Strong profitability supports book value Earning per share (EPS) Equity Book value per share 7.21 180 6.43 152 162 5.70 140 138 142 141 143 5.29 5.02 4.62 3.30 1.08 298 293 302 301 305 324 345 383 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23
Slide 31: Key Ratios
Key Ratios Slowdown in credit demand softens ADR to 44.4% LCR stood at176%, and the NSFR at 259%, well above the requirement 54.0% Liquidity Coverage Net Stable Funding 52.5% 321% 278% 48.8% 256% 251% 259% 47.0% 45.6% 233% 44.0% 44.4% 42.7% 169% 180% 176% 164% 148% 147% Mar-22 Jun-22 Sept-22 Dec-22
Slide 32: Awards & Recognitions
Awards & Recognitions 1. Corporate & Investment Bank of The Year 2021 – Asian Banking & Finance 2. Corporate Client Initiative of the Year 2021 – Asian Banking & Finance 3. Debt Deal of the Year 2021 – Asian Banking & Finance 4. Best Project Infrastructure Deal of the Year 2021 – Asian Banking & Fin
Slide 33: Thank You
Thank You 33
National Bank of Pakistan — FY2023 Earnings Presentation on 6ix