Month: February 2023

Karachi, February 28, 2023 (PPI-OT):The Board of Directors of National Bank of Pakistan “NBP” “the Bank” met today to approve the annual financial statements for the year ended December 31, 2022. The Bank has delivered yet another year of strong financial results, and posted a pre-tax profit of PKR 62.7 Bn, depicting an annual increase of 18.7%. With strong income momentum across its businesses segments, the Bank’s fund-based net interest income was particularly strong. Amidst the challenging macro environment, the Bank has continued to provide support for its customers and clients in line with its Vision.

The 40% growth in average earning assets, coupled with margin expansion through higher policy rates, generated gross interest income of PKR 503.3 Bn i.e. 117% higher than PKR 231.9 Bn for 2021. Pursuant to an effective fund mobilisation, average interest bearing liabilities of the Bank reached PKR 3,871.9 Bn (2021: PKR 2,692.9 Bn). Consequently, in the backdrop of higher average interest rate, the Bank’s cost of funds amounted to PKR 386.5 Bn. Accordingly, net interest income for the year closed at PKR 116.8 Bn, depicting a YoY increase of 19.7%.

Despite a challenging business environment and lower trade activity, the Bank maintained its non-fund income stream that amounted to PKR 36.7 Bn (2021: PKR 36.9 Bn). Equity investments of the Bank generated dividend income of PKR 5.2 Bn, 13.3% higher YoY. Fee and commission income earned through banking operations amounted to PKR 21.2 Bn i.e. 18.8% higher YoY and are reflective of the Bank’s widespread customer base and market outreach. As the Bank provides FX solutions to a large number of corporates, its forex income for the year amounted to PKR 7.4 Bn which is 14.4% higher YoY. However, due to a lacklustre performance of the stock market, the Bank could generate capital gains of PKR 1.1 Bn as compared to PKR 6.2 Bn last year. Consequently, total income for the year amounted to PKR 153.5 Bn, i.e. PKR 18.95 Bn or 14.1% higher, YoY.

Reflecting the inflationary impacts, ad hoc allowance allowed to the employees and the Bank’s investment into its IT systems and upgrade of business premises, operating expenses for the year amounted to PKR 78.2 Bn (2021: PKR 60.0 Bn). Pursuant to a prudent strategy to strengthen the capital base, a provision charge of PKR 12.6 Bn was created during the year. This is particularly important in the backdrop that IFRS 9 stands implemented effective January 01, 2023. As the Bank held PKR 190.7 Bn in specific provisions against NPL of PKR 205.3 Bn, depicting a high coverage ratio at 93%.

Accordingly, the Bank’s pre-tax profit for the year amounted to PKR 62.7 Bn i.e. 18.7% up against PKR 52.9 Bn for the prior year. As a result of retrospective taxation and increase of 10% in the income tax rates for banks (from 39% to 49%), tax charge amounted to PKR 32.3 Bn, translating into an effective tax rate of 51.5% as compared to 47.0% for the year 2021. Resultantly, profit after tax for the year amounted to PKR 30.4 Bn i.e. 8.6% higher than PKR 28.0 Bn for 2021.

This year, the Bank achieved PKR 5 TRILLION milestone in its balance sheet that grew by 36.2% to reach PKR 5,240.4 Bn from PKR 3,846.7 Bn at the end of 2021. This makes NBP the largest Bank in Pakistan in terms of total assets. While investment (net) increased by 79.4% to reach PKR 3,477.4 Bn, gross advances recorded 10.2% growth to reach PKR 1,438.6 Bn. With this growth, the Bank’s advances-to-deposits ratio improved to 54% as compared to 43% at the end of 2021. With a widespread and well- diversified market outreach, the Bank maintains a strong funding and liquidity profile. At the year end, total deposits amounted to PKR 2,666.2 Bn as compared to PKR 3,019.2 Bn at the end of 2021.

This drop in deposits is based on the Bank’s focussed strategy to reduce high cost deposits so as to deliver higher after-tax profit to its shareholders. Major share of the Bank’s deposits comes from sticky customer deposits that contribute 98.1% of the total deposits. With current deposits amounting to PKR 1,310.2 Bn or 49.1% of the total deposits, the Bank maintains a strong liquidity profile. While CASA ratio stood at 79.4%, Liquidity Coverage and Net Stable Funding also remained high at 195% and 251%, respectively. While shareholders’ net assets increased by 5.1% YoY to PKR 300.8 Bn, capital adequacy ratio improved by 120bps to 21.59% from 20.39% at YE ’21. The Bank enjoys highest credit ratings of AAA / A1+ for both long term and short term respectively as reaffirmed separately by both PACRA as well as VIS Credit Rating Company in June 2022.

Commenting on the annual performance, the Bank’s President/CEO(A), Mr. Rehmat Ali Hasnie, said that the excellent strategic delivery and financial results were testament to the efforts and dedication demonstrated by the Bank’s employees in serving the Nation through these challenging times. The Bank is pursuing a major organizational and technological transformation, product enhancement, digitalization and initiatives for promoting financial inclusion with a focus on commercial and rural segments. In parallel with its business growth initiatives, the Bank has also continued to progress via remediation of legacy issues.

As the Nation’s Bank, going forward, NBP’s strategy focuses on enhancing its service quality levels, diversifying its outreach through digitalization, and increasing its products and services suite.

For more information, contact:
Vice President / Divisional Head (A)
National Bank of Pakistan (NBP)
Corporate Communication and Brand Management Division
Head Office, NBP Building, I.I. Chundrigar Road, Karachi, Pakistan
Tel: +92-21-99220773
Cell: +92-300-8202184
Fax: +92-21-99212734
Email: ibne.hassan@nbp.com.pk
Website: https://www.nbp.com.pk/

The post Strong Performance with Pre-tax Profit of PKR 62.7 Billion, 18.7% up YoY – With 36.2% YoY Growth, Total Assets reach PKR 5.2 Trillion appeared first on Business News Pakistan.

Karachi, February 28, 2023 (PPI-OT):Amir Paracha, Chairman and Chief Executive Officer, Unilever Pakistan Limited has taken over as the President of the Overseas Investors Chamber of Commerce and Industry (OICCI) for the 2023 term. This was announced at the 163rd Annual General Meeting of the OICCI held at the Chamber on Tuesday, February 28, 2023. Rehan Muhammad Shaikh, Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited, was elected as the Vice President.

The other elected members of the OICCI Managing Committee for 2023 are as follows:

1. Syed Anis Ahmed – Abbott Laboratories (Pakistan) Limited

2. Ahmed Zahid Zaheer – Chevron Pakistan Lubricants (Pvt.) Limited

3. Umer Ahsan Khan – Dawlance (Private) Limited

4. Kamran Ataullah Khan – Dupont Pakistan Operations (Pvt.) Limited

5. Erum Shakir Rahim – GlaxoSmithKline Pakistan Limited

6. Najeeb Ahmad – Hitachi Energy Pakistan (Pvt.) Limited

7. Ali Asghar Jamali – Indus Motor Company Limited

8. Waqar Irshad Siddiqui – Shell Pakistan Limited

In his message to the members, incoming President OICCI, Amir Paracha, said “Pakistan’s multi-fold challenges are evident to all of us and now is the time for leaders across all sectors to unite as a force for good and lead Pakistan back on a path of growth. Foreign investment is the primary gateway with which developing economies like Pakistan can access innovative technology and increased market access resulting in improvement of human capital. These factors are critical in enabling Pakistan to achieve a higher growth trajectory, supported by predictable, consistent, and transparent policy frameworks. There are many examples in the region of economies with similar challenges managing to achieve notable economic growth primarily through promotion of FDI. For strong sustainable socio-economic growth, bringing in technology advancements is imperative.”

Amir Paracha earned his Master’s in Business Administration (MBA) from the Institute of Business Administration, Karachi and is serving on the Boards of Endeavour Pakistan, Karachi Vocational Training Centre, and Federation of Pakistan Chambers of Commerce and Industry (FPCCI).

For more information, contact:
Overseas Investors Chamber of Commerce and Industry (OICCI)
Chamber of Commerce Building, Talpur Road, P.O. Box 4833,
Karachi – 74000, Pakistan
Tel: +92-21-32410814-5
Fax: +92-21-32427315
Email: info@oicci.org
Website: http://oicci.org/

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Karachi, February 28, 2023 (PPI-OT):VIS Credit Rating Company Limited (VIS) has suspended the entity ratings assigned to Sheikhoo Sugar Mills Limited (SSML), with immediate effect, due to non-availability of required information for ratings analysis. The ratings will be reassessed as and when required information is available. The previous rating action was announced on February 03, 2022.

For more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: bilal@jcrvis.com.pk
Website: https://www.vis.com.pk/

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Islamabad, February 28, 2023 (PPI-OT):Speaker National Assembly said that there is no possibility of Pakistan’s default and the current economic crisis would be overcome soon to make Pakistan a strong economy. He said that he has talked to the finance minister about LCs issue and this issue would be resolved soon to facilitate the business community in import of essential manufacturing items. He said that business community is playing key role in the economy and the government should consult them while making business and economic policies. He said that he would support ICCI representation in CDA Board and if rules allow, he would invite ICCI members to the meetings of NA standing committees.

He said that he would cooperate with ICCI in efforts for charter of economy. He stressed that the business leaders should play role to develop national unity and harmony as division in society is not good for the country. He expressed these views while addressing as Chief Guest at “ICCI Business Role Models Awards” ceremony at Chamber House. He distributed awards to the business leaders and congratulated them for their achievements.

Speaking at the occasion, Ahsan Zafar Bakhtawari, President, Islamabad Chamber of Commerce and Industry (ICCI) said that the business community is the key stakeholder in the development of the federal capital and ICCI should be given representation in CDA to help resolve their key issues more effectively. He said that ICCI should be invited to the business related standing committees of National Assembly including Finance and Revenue, Commerce, Board of Investment, Industries and Production Committees.

He said that ICCI is ready to bring all political parties on one platform to develop consensus on a charter of economy in order to ensure long-term economic policies that should not be disturbed with the change of government and said that Raja Pervaiz Ashraf should support ICCI in these efforts. He said that business leaders are rendering great services to the business community by dedicating their time and efforts to resolve their issues and the purpose of organizing ICCI Business Role Model Award is to acknowledge and recognize their role in society.

Faad Waheed, Senior Vice President ICCI stressed that the government should fully support ICCI in establishing a new industrial zone in the region. He said that government should promote ease of doing business to increase revenue generation and tax expansion. Engr. Azhar ul Islam Zafar, Vice President ICCI thanked the Chief Guest and all the participants for attending the awards ceremony.

Khalid Iqbal Malik Group Leader stressed that the government should finalize economic policies in consultation with business community and allocate land to ICCI for industrial estate. Zafar Bakhtawari, former President ICCI said that business leaders should be acknowledged to promote them as role models in society. He said that Pakistan needs to develop brands to emerge as a strong economy.

Ajmal Baloch, Kashif Chaudhry, Sardar Tahir Mehmood, Asad Aziz, Zikria A. Zia, Shehzad Shabbir Abbasi, Ahmed Khan, Raja Hassan Akhtar, Raja Javed Iqbal, Raja Ammad Bin Arif, Raja Khurram Niaz, Altaf Hussain Shah, M. Abid Abbasi, Raja Fayyaz Gull, Ch. Aftab Gujjar, Safeer Ahmed, Wajid Ayub, Nasir Mehmood Chaudhry, Zahir Abbasi, Babu M. Aleem, Azhar Iqbal, Najeeb Malik, Zafar Iqbal Gujjar, Muhammad Nouman, Raja Zahid M. Danyal, Ch. Riasat Ali and Jamshaid Akhtar Sheikh, Khalid Chaudhry and others were given the ICCI Business Role Model Award.

For more information, contact:
Islamabad Chamber of Commerce and Industry (ICCI)
Chamber House, Aiwan-e-Sanat-o-Tijarat Road,
Mauve Area, G-8/1, Islamabad, Pakistan
Tel: +92-51-2250526, 2253145, 8432676
Fax: +92-51-2252950
Email: icci@brain.net.pk, info@icci.com.pk
Website: www.icci.com.pk

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Karachi, February 28, 2023 (PPI-OT):UBL Funds and RIZQ have joined hands to drive financial wellness in Pakistan. The partnership aims to empower salaried professionals and freelancers to save smartly amid rising inflation. RIZQ is a financial wellness app that offers a wide range of products and services, providing enhanced access to financial planning and security for salaried professionals and freelancers.

Features include daily profits, goal-based savings, committees, loans, smart payments, intelligent budgeting, tailored health insurance plans, and much more. Designed to boost the financial ecosystem, RIZQ acts as a ‘financial passport’ for its users by offering 1-tap access to financial services from licensed financial institutions.

The Savings Wallet, powered by UBL Funds, will play a key role in improving the penetration of mutual funds in the retail segment, which currently sits at less than 1%. Users can earn daily profits on their savings with the option of anytime withdrawals.

“Career wellness and financial wellness go hand-in-hand. Our company continues to drive innovation and meet the changing needs of today’s market,” shared S. H. Kazi, CEO of RIZQ and Rozee.pk.

UBL Fund Managers Limited, a wholly owned subsidiary of UBL Bank Limited, is one of the leading asset management, pension funds management, and investment advisory companies, managing more than Rs.150 billion (at end of Jan’2023, ~USD 566 million) in both conventional and Shariah-compliant funds/plans (excluding Advisory mandates).

Al-Ameen Funds is the Shariah-compliant funds range under the supervision of the Shariah Advisory Council Comprising Mufti Mohammed Najeeb Khan and Mufti Mohammad Hassaan Kaleem. UBL Funds was Pakistan’s first AMC to have Global Investment Performance Standards (of CFA Institute) compliant status in 2010 and also the first to launch a CPPI Fund based on internationally renowned methodology.

The following year in 2011, it went international and launched UBL Fund Managers in the Middle East. In 2017, it was assigned the ‘AM1’ rating by VIS, the highest Management Quality rating for an Asset Manager in Pakistan, and has been maintained since then.

UBL Funds’ mission is focused on superior returns, excellent customer service, and need-based products with the highest ethical and professional standards. Nearing the completion of its beta testing phase, RIZQ is currently available on both the Play Store and App Store.

For more information, contact:
UBL Fund Managers Limited
4th Floor, STSM Building,
Beaumont Road, Karachi, Pakistan
Tel: +92-21-111-825-262
Email: customercare@ublfunds.com
Website: https://www.ublfunds.com.pk/

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