NSB recorded a profit before tax (PBT) of Rs.10.2 billion for nine months ended September 30, 2016, a 12 percent increase as compared with the same period last year. 

Growth in traditional lines of business, enhanced fee-based income, coupled with lower impairment provisioning due to a significant improvement in asset quality, have been the contributory factors leading to this growth.

The bank reported an operating profit of Rs.12.3 billion for the nine-month period recording a growth of 13 percent when compared to the Rs.10.9 billion operating profit reported for the correspondence period last year. The profit after tax (PAT) was reported at Rs.7.4 billion for the nine months ended September 30, which is a notable growth of 32 percent, compared to Rs.5.6 billion PAT recorded during the same period last year. These profits were recorded despite lower net interest margins due to a rising market interest rate scenario.

The interest income of the bank grew by 8 percent to reach Rs.62.9 billion, while the interest expenses recorded an increase of 15 percent mainly due to upward repricing of its term deposit portfolio on account of interest rate pressures.

The bank’s loans and advances portfolio grew satisfactorily helped by a growth in retail loans of 17 percent as compared to the previous year. Another key highlight has been the significant decline of gross non performing loans (NPL) ratio to 1.8 percent as at September 30, 2016, from 3.5 percent at the start of the year 2016.

The bank has already contributed Rs.14.4 billion to the government in the form of taxes and levies for the year 2016, a significantly higher amount as compared with last year.
The total assets of the bank stood at Rs.886 billion by end- September 30 indicating a growth of 5 percent. During the period under review, the total deposit base of the bank grew by 7 percent to reach Rs.638 billion.

The bank’s Tier I capital adequacy ratio stood at 11.6 percent, while the total capital adequacy was 10.6 percent as at September 30, 2016. Those ratios were 17.9 percent and 16.4 percent as at December 31, 2015.