Daily The Business

NBP shareholders denied dividend, amid 47 pc growth in profit

Experts smell a rat, suspect Bank BOD want to brush something under the carpet

M J Hayat

LAHORE: Despite earning a huge profit of Rs 12.73 billion for the half
year ended on June 2018, the board of directors of the National bank
of Pakistan have not declared any cash dividend, Bonus issue, right
share or any other entitlement.

According to the financial accounts for the period under review the
NBP earned huge profit of Rs 12.74 billion more Rs 4.09 billion which
is 47.40 percent higher compared to the profit of year 2017.

The Bank earned net markup interest income after provisions of Rs
27.80 billion during the half year 2018 against the income of Rs 24.88
billion during the first half of 2017.

However, the non-interest income could only slightly improve from Rs
16.20 billion in 2017 against Rs 16.05 billion during the half year
2018.

On the expense sides the non-markup interest expenses, the bank
controlled the expenses to Rs 26.49 billion in the six months of the
year 2018 against the expenses of Rs 27.10 billion during the same
period last year.

However, the administrative expenditures shot up slightly from Rs
25.53 billion in six months of 2017 against Rs 26.14 in six months of
2018.

The experts said that the expenses escalated due to the extravagance
of the administration as it showed no restraint in controlling the
administrative expenditures.

The bank earned a profit of Rs 17.51 before taxation in the period
against the same period profit of Rs 13.83 billion.

On the other hand, the after taxation profit of the bank has shot up
to Rs 12.74 billion in the six months of the year 2018 against the
profit after taxation of Rs 8.64 billion which is over 47 percent high
against the profit of six months of 2017.

The bank despite the fact that the profit of the bank grew by 47
percent in the six months of the year 2018 the shareholders have not
been given any benefit as the Bank informed that the board of
directors of the bank has not recommended any cash, dividend, bonus
issue, right issue or any other entitlement.

The Banking sector experts expressing their surprise on the non
recommendation of dividend, bonus and any other benefit smell a rat.

They said that the bank BOD might want to hide extravagance at the
end of the year when full year’s profit will be declared.

The bank BOD may attempt to avoid to extend due share of the profits
to the shareholders in order to benefit the few executives of the bank
or brush some dirt under the carpet, they said.

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