KARACHI: The Board of Directors of National Bank of Pakistan (NBP) convened on February 28, 2025, to approve the audited annual financial statements for the year ended December 31, 2024. The bank reported a pre-tax profit of Rs 56.7 billion, despite incurring an extraordinary cost of Rs 68.0 billion due to compliance with the Supreme Court of Pakistan’s ruling on pension litigation.
NBP generated a gross mark-up income of Rs 1,089.4 billion, solidifying its position among Pakistan’s top revenue-generating banks. After paying Rs 918.5 billion to depositors, the bank’s cost of funds improved to 15.84 percent. Net interest income increased by 1.3 percent year-on-year (YoY) to Rs 170.9 billion, with a net spread of 2.37 percent. Non-mark-up/non-interest income saw a substantial 61.1 percent surge to Rs 65.4 billion, demonstrating the bank’s effective revenue diversification strategy.
Operating expenses reached Rs 119.8 billion, reflecting a 17 percent YoY increase. The bank’s after-tax profit stood at Rs 26.9 billion. Since 2017, NBP has retained its entire profits to safeguard capital adequacy, ensuring financial stability and long-term sustainability in compliance with regulatory expectations.
In light of its strengthened financial position, the Board has recommended a final cash dividend of Rs 8 per share (80%) for 2024, subject to shareholder approval at the upcoming 76th Annual General Meeting. This dividend aligns with the bank’s commitment to enhancing shareholder value while maintaining robust capital adequacy as a domestic systemically important bank.
NBP has also gained recognition from Standard & Poor’s, ranking among the top 10 best-performing stocks in 2024 across Asia Pacific lenders. With increased investor confidence, its market capitalization has surged to approximately Rs 175 billion, marking an impressive 170 percent growth since February 2024.
Strong Capital Position and Regulatory Compliance
NBP successfully implemented IFRS 9 in 2024, ensuring compliance with State Bank of Pakistan (SBP) regulations. Despite a net tax impact of Rs 12.0 billion on its opening equity, the bank strengthened its financial indicators. Total eligible capital grew by 27.4 percent to Rs 479.8 billion, while Common Equity Tier 1 (CET 1) ratio and Capital Adequacy Ratio (CAR) improved to 20.51 percent and 27.80 percent, respectively. The bank’s Liquidity Coverage Ratio rose to 206 percent (from 176% in 2023), and Net Stable Funding Ratio increased to 174 percent (from 159% in 2023).
On the balance sheet side, gross loans and advances reached Rs 1,672.8 billion, reflecting a 2.5 percent YoY increase. The bank’s investments (at cost) amounted to Rs 4,475.4 billion, with a carrying value of Rs 4,612.3 billion. With a Non-Performing Loan (Stage-3) coverage ratio of 83.8 percent, the bank maintained credit loss allowances of Rs 225.8 billion. Net assets grew by 19.4 percent YoY to Rs 457.0 billion, translating to a book value per share of Rs 215.
Total deposits stood at Rs 3,865.6 billion, with 94.2 percent coming from stable customer deposits. Current deposits made up 50.4 percent of total deposits, while the Current and Savings Account (CASA) ratio remained high at 79.5 percent. NBP also emerged as the top agricultural credit performer bank in FY’23 and FY’24 among large banks, according to SBP ratings. SME financing grew to Rs 99.0 billion, reflecting a 12 percent YoY increase.
Islamic Banking Expansion
NBP’s Islamic banking network expanded significantly in 2024, adding over 100 new Islamic Banking Windows (IBWs), bringing the total to 251. NBP Aitemaad’s total assets surged to Rs 333.4 billion, reflecting a record 137.9 percent YoY growth from Rs 140.2 billion in 2023. The bank also launched NBP Aitemaad Advance Salary, an Islamic alternative to its flagship retail lending product, as part of its commitment to Shariah-compliant banking.
In line with the Federal Shariat Court’s directive and SBP’s 2027 mandate for a complete transition to Islamic banking, NBP plans to establish another 100 IBWs and convert over 100 conventional branches to Islamic banking in 2025.
Commitment to ESG and CSR Initiatives
NBP has integrated Environmental, Social, and Governance (ESG) principles into its decision-making framework. In 2024, the bank invested Rs 150 million in Corporate Social Responsibility (CSR) initiatives and allocated Rs 30.1 billion to green financing projects.
CEO’s Vision
Commenting on the bank’s performance, Rehmat Ali Hasnie, President & CEO of NBP, emphasized the bank’s pivotal role in economic development and financial well-being. He reiterated NBP’s commitment to supporting individuals and businesses, particularly in the SME, commercial, and rural sectors.
“This deep-rooted sense of responsibility defines the bank’s inclusive mission and its enduring commitment to its tagline: Ek Azm Aur Ek Pehchan – National Bank Aur Pakistan,” he added.
