FINANCIAL HIGHLIGHTS

Transcription

1 FINANCIAL HIGHLIGHTS

2 HIGHLIGHTS % up Profit after Tax Total Assets 2,370 Profit after Tax Profit & Loss Account Net Interest Income 54.3 NonInterest Income , , % up Profit after Tax 23.0 Profit before Tax 35.6 Operating Expenses 48.5 Total Assets Provisions 1.2 Balance Sheet Net Assets 175 1, % up Liabilities 2, Assets 2,370 Investment Liabilities 1,799 Net Assets 177 Assets 1, ANNUAL REPORT 2017

3 National Bank of Pakistan HIGHLIGHTS Operating Income NonInterest Income % up 36% Net Interest Income % Operating Income NonInterest Income Capital Gains 6.5 Other Income 1.7 4% up Exchange Income % 6% 7% Dividend Income % NonInterest Income 54% Fee & Commission 16.8 Admin Expenses Staff Cost % 2.7% up Admin Expenses Others % Security & Outsourced 3.5 7% 3% 7% Rent, Taxes, Utilities 3.6 Repairs & Maint. 1.3 ANNUAL REPORT

4 HIGHLIGHTS Net Assets Surplus on Revaluation of Assets 49.7 Share Capital % down 28% 12% Unappropriated Profit % 29% Reserves 50.4 Net Assets Advances Gross % up In local currency % 9% In foreign currencies 78 Advances Gross Deposits 1, ,727.1 Fixed Deposit % up Rem. & Non Rem % 53% Deposits 28% Saving Deposits ANNUAL REPORT 2017

5 National Bank of Pakistan FINANCIAL HIGHLIGHTS (PKR Mn) Total Assets 2,369,885 1,975,706 1,706,361 1,543,054 1,364,926 1,309,528 1,149,578 1,037,750 Deposits 1,727,2 1,657,312 1,431,037 1,233,525 1,1,139 1,036, , ,152 Advances net 739, , , , , , , ,507 Investment net 1,295, , , , , , , ,324 Capital & Reserves 175, , , , , , , ,496 Capital Adequacy Ratios 15.95% 16.54% 17.59% 17.39% 15.24% 15.50% 16.% 16.93% PreTax Profit 35,599 37,141 33,216 22,001 7,078 21,378 26,011 24,415 AfterTax Profit 23,028 22,752 19,219 15,028 5,500 14,941 17,605 17,563 Earnings Per Share (Rs.) Breakup Value per Share (Rs.) Number of Branches 1,519 1, Number of Employees 15,616 15,793 15,548 16,190 16,619 16,921 16,924 16,457 Profit & Loss Markup Earned Markup Expensed Net Interest Income NonInterest Income NonMarkup Expense Profit before Provisions Provisions Pretax Profit Taxation Aftertax Profit Key Balance Sheet Items Investment (net) , % Advances (net) % Deposits 1, , % ANNUAL REPORT

6 6 YEARS' FINANCIAL HIGHLIGHTS PreTax Profit AfterTax Profit Earnings per Share (PKR) Breakup value per Share (PKR) Number of Branches ( No. ) Number of Employees ( No. ) ,000 1,200 1,400 1,600 2,000 4,000 6,000 8,000,000 12,000 14,000 16,000 18, , , , , , , , , , , , , ANNUAL REPORT 2017

7 National Bank of Pakistan 6 YEARS' FINANCIAL HIGHLIGHTS Total Assets Deposits 500 1,000 1,500 2,000 2, , , , , , , , , , , , ,036 Advances net ,000 1,200 1, ,000 1,500 2,000 Investment net Capital & Reserves Capital Adequacy Ratio ( % ) ANNUAL REPORT

8 A GLIMPSE OF QUARTERLY FINANCIAL POSITION & PERFORMANCE Financial Position PKR Mn Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Cash and balances with treasury and other banks 159, , , , , , , ,282 Balances with other banks 26,404 30,698 14,146 19,630 13,828 11,329 18,281 13,552 Lendings to financial institutions 26,916 18,076 41,501 67, ,709 14,987 8,682 5,923 Investments net 1,295,720 1,218,838 1,206, , , , , ,650 Advances net 739, , , , , , , ,002 Operating Fixed Assets 32,752 32,659 32,701 32,734 32,901 31,884 32,479 32,019 Deferred Tax Assets net 7,317 4,578 3,755 3,816 5,136 7,547 8,125 11,462 Other Assets 81,240 86,737 93,545 73,604 77,775 93,492 87,548 74,889 Total Assets 2,369,885 2,224,071 2,324,828 1,935,759 1,975,706 1,829,481 1,904,862 1,680,778 Bills payable 13,195 17,318 29,908,342,187 6,931,200 7,566 Borrowings 360,6 259, ,531 65,438 44, , , ,495 Deposits and other accounts 1,727,2 1,684,805 1,740,338 1,588,386 1,657,312 1,416,737 1,399,414 1,273,911 Liabilities against assets subject to Finance Lease Other liabilities 94,086 88,515 3,256 4,550 86,584 80,805 83,609 94,221 Total Liabilities 2,194,503 2,050,517 2,155,053 1,768,739 1,798,973 1,661,187 1,740,381 1,527,226 Net Assets 175, , , , , , , ,552 Represented by as below: Paidup Share Capital 21,275 21,275 21,275 21,275 21,275 21,275 21,275 21,275 Reserves 50,357 49,255 48,190 47,620 46,800 47,367 46,825 46,195 Unappropriated Profit 54,061 48,139 42,578 39,488 51,939 46,525 42,955 35,074 Equity 125, , ,043 8, , , ,055 2,544 Surplus on revaluation of assets 49,689 54,886 57,732 58,637 56,718 53,126 53,425 51, , , , , , , , ,552 Financial Performance Markup / return / interest earned 35,257 30,917 29,558 27,340 30,561 26,646 30,225 26,970 Markup / return / interest expensed 19,311 19,031 15,426 15,052 15,004 15,025 14,604 14,945 Net markup / Interest income 15,945 11,886 14,133 12,288 15,556 11,621 15,621 12,025 Noninterest income 8,079 7,678 7,9 7,398 9,075 6,724 7,629 6,539 Operating Expenses 12,066 11,690 12,328 12,443 12,837 11,348 11,706 11,362 Profit before Provisions 11,958 7,874 9,715 7,244 11,794 6,997 11,544 7,203 Provisions (419) (1,734) 2, (2,502) 685 1,182 1,032 Pretax Profit 12,377 9,608 6,964 6,651 14,297 6,312,362 6,171 Taxation 4,054 3,456 2,612 2,449 4,960 2,344 4,951 2,134 Aftertax Profit 8,323 6,152 4,351 4,202 9,337 3,968 5,4 4, ANNUAL REPORT 2017

9 National Bank of Pakistan A GLIMPSE OF QUARTERLY FINANCIAL POSITION & PERFORMANCE Total Assets Deposits 2,500 2,000 2,000 1,500 1, , , , , , , , ,500 1,000 1, , , , , , , , , Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Markup Income Earned Markup Expense Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ANNUAL REPORT

10 A GLIMPSE OF QUARTERLY FINANCIAL POSITION & PERFORMANCE Net Interest Income NonInterest Income Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Pretax Profit Aftertax Profit Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 32 ANNUAL REPORT 2017

11 National Bank of Pakistan STATEMENT OF VALUE ADDED Value Generated Markup / Interest Income 123, ,403 Non Markup / Interest Income 31,066 29,967 Operating Expenses (Exc. Staff cost, Depreciation, Amortisation) (14,370) (12,970) Provisions against NonPerforming Assets (1,192) (397) Value Added Available for Distribution 138, ,002 PKR Mn Distribution of Value Generated 2017 % 2016 % To Depositors as Profit 68, % 59, % To Providers of Capital: Dividend for the Year 0.0% 15, % To Employees: Remuneration 26, % 26, % Defined Benefit Plans 4, % 4, % 31, % 31, % To Society: Donations & CSR % % To Government: Income Tax 12, % 14, % To Expansion & Sustainability: Depreciation 2,1 1.5% 2, % Amortisation % % Value Retained 23, % 6, % 26,7 18.8% 9, % 138,576 0% 131,002 0% Distribution of Value Generated 21% To Employees 31.0 To Society 0.06 (.04%) Food & Shelter % 31% Health & Safety To Depositors % PKR Bn 19% 9% To Government To Expansion & Sustainability 26. Education PKR 0.06 Bn 9% 5% 48% Social Welfare Relief & Rehabilitation ANNUAL REPORT

12 CONCENTRATION OF ADVANCES AND CLASSIFIED ADVANCES Sector PKR Mn Advances % Var Classified % Var (Gross) Share (%) Advances Share (%) Production and transmission of Energy 195,999 23% 1% 3,790 3% % Individuals 136,823 16% 1% 8,960 7% 26% Textile 93,142 11% 15% 35,386 29% 8% Metal products 59,325 7% 4% 14,276 12% 3% Transportation 58,638 7% 4% 6,009 5% 12% Agriculture 47,579 6% 5% 5,168 4% 8% Sugar 34,843 4% 26% 3,525 3% 9% General traders 26,682 3% 3% 8,483 7% 16% Rice processing 19,873 2% 39% 4,701 4% 16% Fertilizer 19,150 2% 33% 3,150 3% 1% Hotel and services 13,964 2% 31% 6,538 5% 14% Cement 12,298 1% 43% 2,526 2% 0% Real estate construction,847 1% 19% 3,336 3% 2% Financial 6,863 1% 66% 485 0% 45% Others 120,913 14% 33% 14,466 12% 20% Total 856,938 0% % 120,798 0% 1% Advances (Gross) Classified Advances PKR 856,938 Mn PKR 120,798 Mn 34 ANNUAL REPORT 2017

13 National Bank of Pakistan CONCENTRATION OF DEPOSITS AND CONTINGENCIES & COMMITMENTS Sector Deposits PKR Mn % Var Contingen. % Var Share (%) & Commit. Share (%) Production and transmission of Energy 129,823 8% 13% 146,027 27% 27% Individuals 595,357 34% % 2,5 0% 17% Textile 3,580 0% 5% 8,375 2% 8% Metal products 2,483 0% 16% 4,488 1% 73% Transportation 849 0% 4% 19,028 4% 46% Agriculture 46,254 3% 19% 22 0% 13% Sugar 1,591 0% 162% 903 0% 1211% General traders 52,966 3% 12% 1,834 0% 64% Rice processing 1,436 0% 67% 0% 0% Fertilizer 1,083 0% 57% 1,160 0% 55% Hotel and services 167,539 % 0% 248,455 47% 77% Cement 1,972 0% 129% 12,519 2% 215% Real estate construction 5,918 0% 4% 6,576 1% 8% Financial 273,820 16% 35% 16,528 3% 48% Others 442,431 26% 8% 65,027 12% 15% Total 1,727,2 0% 4% 533,450 0% 13% Deposits Contingencies & Commitments PKR 1,727,2 Mn PKR 533,450 Mn ANNUAL REPORT

14 DUPONT ANALYSIS Indicator Formula Net Operating Margin PAT / Total Income A % Asset Utilisation Total Income / Avg Assets B % Return on Assets PAT / Avg Assets C = A x B % Leverage Ratio / Equity Multiplier Avg Assets / Avg Equity D X Return on Equity PAT/Avg Equity C = C x D % NoM & AU 40.0% 35.0% DuPont Analysis 30.0% 27.0% 18.7% 26.8% 19.3% 17.0% 25.0% 21.7% 22.1% 19.7% 14.2% 13.9% 20.0% 15.0% 8.6% 5.4%.0% 3.9% 4.6% 5.5% 5.2% 4.8% 5.5% 5.0% 0.0% ROE 25.0% 20.0% 15.0%.0% 5.0% 0.0% Net Operating Margin Assets Utilisation Return on Equity Following are the main DuPont Analysis Highlights: 1. Net operating margins of the Bank have improved from Improvement in the net operating margins is mainly attributed to higher non markup income. 2. Asset Utilisation in terms of Total Income has dropped to 3.9% in 2017 from 4.6% in This was mainly due to increased cost of deposits. 3. Equity multiplier has recorded growth since SUMMARY OF INVESTMENTS BY SEGMENT PKR Mn Federal Government Securities 1,156, ,114 Foreign Government Securities 21,491 21,648 Fully Paidup Ordinary Shares & Mutual Funds 26,197 26,315 Debt Securities 55,795 58,727 Preference Shares Subsidiaries, Associates and JVs 11,240 11,132 Total Investments at Cost 1,271, ,570 Provision for diminution in value of investments (14,680) (17,405) Investments (cost net of provisions) 1,257, ,165 Unrealised gain / (loss) on revaluation of HFT securities (14) (67) Surplus on revaluation of availableforsale securities 38,476 51,033 Total investments at carrying value 1,295, , ANNUAL REPORT 2017

15 National Bank of Pakistan NONPERFORMING LOANS PKR Mn Variance (%) Categorywise NPL Spec. Prov. NPL Spec. Prov. Coverage Ratio NPL Prov. OAEM 1, , % 3% 18% 40% Substandard 5,679 1,363 4,841 1,130 24% 23% 17% 21% Doubtful 2,468 1,194 3,583 1,616 48% 45% 31% 26% Loss 111,378 8,049 9,916 6,877 97% 97% 1% 1% Total 120,798 1, ,416 9,655 92% 92% 1% 1% PKR Bn Asset Quality 0% 90% 80% 70% 60% 50% 40% 30% 20% % Loss % 5% 1% PKR Bn 2% Substandard 5.68 OAEM 1.28 Doubtful % NPL Specific Provision Coverage Ratio Infection Ratio Weekly Domestic Advances and Deposits 2017 PKR Bn 1,700 1,600 1,500 1,400 1,300 1,200 1,0 1, % 13% 12% 11% % Advances Deposits % Market Share Adv. % Market Share Dep. ANNUAL REPORT

16 KEY PERFORMANCE RATIOS A. SIZE FACTOR 1. Total Assets PKR Mn 2,369,885 1,975,706 1,706,361 1,543,054 1,364,926 1,309, Total Capital " 175, , , , , , Deposits " 1,727,2 1,657,312 1,431,037 1,233,525 1,1,139 1,036, Profit after Tax " 23,028 22,752 19,219 15,028 5,500 14, Profit before Tax " 35,599 37,141 33,216 22,001 7,078 21,378 B. ASSET QUALITY 6. Total Assets Growth Rate % NPLs To Total Assets " Gross Advances to Deposits Ratio " Net Advances to Deposits Ratio Investment to Deposit Ratio " Assets to Equity Times Infection Ratio NPLs / Gross Advances % NPL Coverage Total Provision / NPLs " NPL Coverage (Specific Provision / NPLs) " C. CAPITAL ADEQUACY 15. TierI Capital PKR Mn 1,303 95,540 91,751 91,758 87,112 4, Total Eligible Capital " 138, , , , , , Risk Weighted Assets RWA " 870, , , , , , TierI to RWA % RWA to Total Assets " Capital Adequacy Ratio " D. INVESTMENT / MARKET RATIOS 21. Earnings per Share and Diluted EPS PKR Price Earning Ratio % Market Value per Share PKR Dividend per Share PKR E. LIQUIDITY 25. Net Loans To Total Assets % Net Loans To Total Deposits " Net Loans To Total Deposits & Borrowings " F. PROFITABILITY 28. Return on Average Assets Pre Tax % Return on Average Equity Pre Tax " Operating Profit To Average Assets " Gross Income To Average Assets " NonInterest Income To Gross Income " Operating Expenses To Gross Income " Operating Expenses To Average Assets " Loan Loss Provisioning Expense to Operating Profit " G. DuPont Analysis 36. Net Operating Margin % Asset Utilisation " Return on Assets After Tax " Return on Equity After Tax " RATES Exchange Rate US $ ANNUAL REPORT 2017

17 National Bank of Pakistan 6 YEARS FINANCIAL RATIO Assets Quality 91.60% 91.83% 75.02% 87.02% 81.23% 77.62% 78.38% 57.95% 54.13% 70.43% 45.54% 64.30% 59.02% 49.62% 47.15% 48.33% 36.14% 33.14% 14.% 15.28% 18.40% 16.60% 16.33% 12.61% ADR Gross Invest. to Dep. Infection Ratio NPL Cov. Specf CAR 60.33% 60.73% 50.60% 40.76% 43.04% 36.75% 15.95% 16.54% 17.59% 17.39% 15.24% 16.48% TierI to RWA RWA to Total Assets Capital Adequacy Ratio 11.63% 11.86% 12.49% 11.75%.58% 13.08% Investment / Market Ratios DPS MV/Share EPS Liquidity Ratios (%) Net Loans to Total Assets Net Loans to Total Deposits Net Loans to Total Deposits (Deposits & Borrowings) Profitability Ratios (%) RoA Pre Tax NII to Gross Income Opex to Gross Income Provisioning Expense to Op. Profit RoE Pre Tax ANNUAL REPORT

18 6 YEARS SUMMARY OF FINANCIAL POSITION AND PERFORMANCE Financial Position PKR Mn ASSETS Cash and balances with treasury and other banks 159, , ,900 97, , ,333 Balances with other banks 26,404 13,828 20,128 12,8 17,458 30,222 Lending to financial institutions 26, ,709 7, ,789 51,939 8,273 Investments net 1,295, , , , , ,538 Advances net 739, , , , , ,690 Operating Fixed Assets 32,752 32,901 31,706 31,796 32,702 27,950 Deferred Tax Assets net 7,317 5,136 9,669 9,878,955 9,848 Other Assets 81,240 77,775 78,895 91,045 80,564 76,675 Total Assets 2,369,885 1,975,706 1,706,361 1,543,054 1,364,926 1,309,528 LIABILITES Bills payable 13,195,187 9,172 11,012 13,895 14,368 Borrowings 360,6 44,864 21,911 37,541 22,239 51,297 Deposits and other accounts 1,727,2 1,657,312 1,431,037 1,233,525 1,1,139 1,036,739 Subordinated loans Liabilities against Assets subject to Finance Lease Deferred tax liabilities Other liabilities 94,086 86,584 75,855 82,634 71,343 67,115 Total Liabilities 2,194,503 1,798,973 1,538,0 1,364,725 1,208,639 1,169,548 Net Assets 175, , , , , ,981 Represented by as below: Paidup Share Capital 21,275 21,275 21,275 21,275 21,275 18,500 Reserves 50,357 46,800 45,581 32,074 31,539 28,819 Unappropriated Profit 54,061 51,939 49,156 57,007 48,046 57,419 Equity 125, , ,011 1,356 0,860 4,737 Surplus on revaluation of assets 49,689 56,718 52,340 67,973 55,427 35, , , , , , ,981 Financial Performance Markup / Return / Interest earned 123, , , ,174 99,028 0,092 Markup / Return / Interest expensed 68,820 59,578 59,941 68,370 60,823 56,418 Net Markup / Interest income 54,253 54,824 53,721 45,804 38,205 43,674 Fee, Commission, Brokerage and Exchange income 19,026 17,013 17,043 15,687 15,394 14,4 Capital gain & Dividend income,301 11,405 15,860 11,3 6,908 6,844 Other income 1,740 1,549 2,081 3,587 3,268 2,595 Noninterest income 31,066 29,967 34,983 30,377 25,570 23,849 Gross income 85,319 84,791 88,704 76,181 63,774 67,524 Operating Expenses 48,528 47,253 42,193 41,703 36,295 35,085 Profit before Provisions 36,791 37,539 46,511 34,478 27,480 32,438 Provisions 1, ,296 12,478 20,401 11,060 Profit before Taxation 35,599 37,141 33,216 22,001 7,078 21,378 Taxation 12,571 14,389 13,997 6,973 1,578 6,437 Profit after Taxation 23,028 22,752 19,219 15,028 5,500 14, ANNUAL REPORT 2017

19 National Bank of Pakistan 6 YEARS BREAK UP OF ADMINISTRATIVE EXPENSES PKR Mn Salaries and allowances 26,020 26,514 24,056 23,378 21,841 21,588 Charge for defined benefit plans 4,999 4,916 4,369 4,825 4,245 3,3 Nonexecutive directors' fee, allowances and other expenses Rent, taxes, insurance, electricity and other utilities 3,619 3,315 3,197 2,596 2,258 2,008 Legal and professional charges Communications 1,184 1, Repairs and maintenance 1,309 1,125 1, Financial charges on leased assets Books, stationery, printing and other computer accessories 1, Advertisement, sponsorship and publicity Donations Contributions for other Corporate and Social Responsibility Auditors' remuneration Depreciation 1,994 1,958 1,220 2,037 1,677 1,424 Depreciation on Ijarah Assets Amortisation Depreciation on NonBanking Assets Conveyance Entertainment Travelling Security services 2,270 2,067 1,976 1,721 1,464 1,296 Outsourcing and janitorial services 1,275 1, Others Total 48,225 46,943 42,120 39,967 36,272 34,925 Administrative Expenses (PKR Mn) 5,000,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50, , , , , , ,925 ANNUAL REPORT

20 6 YEARS SUMMARY OF FINANCIAL POSITION AND PERFORMANCE (CONSOLIDATED) PKR Mn Financial Position ASSETS Cash and balances with treasury and other banks 160, , ,191 98, , ,757 Balances with other banks 26,992 14,396 20,639 12,544 18,389 30,895 Lending to financial institutions 26, ,709 7, ,794 51,942 8,281 Investments net 1,296, , , , , ,965 Advances net 740, , , , , ,654 Operating Fixed assets 33,822 34,058 33,071 33,354 34,569 29,714 Deferred Tax Assets net 7,342 5,172 9,672 9,884,969 9,834 Other Assets 83,981 80,830 80,092 91,839 81,576 77,250 Total Assets 2,376,016 1,981,417 1,711,874 1,549,660 1,372,249 1,316,350 LIABILITES Bills payable 13,195,187 9,172 11,012 13,895 14,368 Borrowings 360,6 44,864 22,385 38,208 23,259 52,158 Deposits and other accounts 1,727,059 1,657,132 1,431,535 1,234,405 1,1,845 1,037,049 Subordinated loans Liabilities against Assets subject to Finance Lease Other liabilities 95,924 89,011 77,036 83,439 72,583 67,855 Total Liabilities 2,196,341 1,801,278 1,540,219 1,367,066 1,211,586 1,171,468 Net Assets 179, , , , , ,880 Represented by as below: Paidup Share Capital 21,275 21,275 21,275 21,275 21,275 18,500 Reserves 49,887 46,031 45,202 32,996 33,537 30,305 Unappropriated Profit 58,069 55,795 52,725 59,752 49,734 59,332 Noncontrolling interest Equity 130, , , ,740 5,367 8,928 Surplus on revaluation of assets 49,632 56,299 51,731 67,853 55,297 35, , , , , , ,880 Financial Performance Markup / Return / Interest earned 123, , , ,252 0,192 1,126 Markup / Return / Interest expensed 68,811 59,594 59,999 68,462 60,894 56,552 Net markup / Interest income 54,604 55,434 54,387 46,790 39,298 44,574 Fee, Commission, Brokerage and Exchange income 20,820 18,224 18,254 16,572 16,273 14,941 Capital gain & Dividend income,049 11,256 14,996,882 6,548 5,300 Share of profit from joint venture net of tax Share of loss from associates net of tax (512) (333) (923) (1,060) (592) 1,856 Other income 1,757 1,567 2,111 3,609 3,284 2,613 Noninterest income 32,115 31,032 34,999 30,305 25,952 24,805 Gross income 86,720 86,467 89,386 77,095 65,250 69,378 Operating Expenses 50,041 48,742 43,794 43,255 37,701 36,082 Profit before provisions 36,678 37,725 45,592 33,840 27,549 33,297 Provisions ,419,703 20,520 11,112 Pretax Profit 36,144 37,595 34,173 23,136 7,029 22,185 Taxation 12,798 14,507 14,096 7,065 1,722 6,519 Aftertax Profit 23,346 23,087 20,077 16,071 5,307 15, ANNUAL REPORT 2017

21 National Bank of Pakistan 6 YEARS VERTICAL ANALYSIS Financial Position PKR Mn % PKR Mn % PKR Mn % PKR Mn % PKR Mn % PKR Mn % ASSETS Cash and balances with treasury banks 159,765 7% 159,836 8% 150,900 9% 97,972 6% 157,930 12% 158,333 12% Balances with other banks 26,404 1% 13,828 1% 20,128 1% 12,8 1% 17,458 1% 30,222 2% Lending to financial institutions 26,916 1% 121,709 6% 7,695 0% 111,789 7% 51,939 4% 8,273 1% Investments net 1,295,720 55% 897,131 45% 829,246 49% 561,764 36% 397,959 29% 343,538 26% Advances net 739,772 31% 667,389 34% 578,122 34% 626,704 41% 615,420 45% 654,690 50% Operating Fixed assets 32,752 1% 32,901 2% 31,706 2% 31,796 2% 32,702 2% 27,950 2% Deferred tax Assets net 7,317 0% 5,136 0% 9,669 1% 9,878 1%,955 1% 9,848 1% Other Assets 81,240 3% 77,775 4% 78,895 5% 91,045 6% 80,564 6% 76,675 6% Total Assets 2,369,885 0% 1,975,706 0% 1,706,361 0% 1,543,054 0% 1,364,926 0% 1,309,528 0% LIABILITES Bills payable 13,195 1%,187 1% 9,172 1% 11,012 1% 13,895 1% 14,368 1% Borrowings 360,6 15% 44,864 2% 21,911 1% 37,541 2% 22,239 2% 51,297 4% Deposits and other accounts 1,727,2 73% 1,657,312 84% 1,431,037 84% 1,233,525 80% 1,1,139 81% 1,036,739 79% Subordinated loans 0% 0% 0% 0% 0% 0% Liabilities against assets subject to Finance Lease 15 0% 26 0% 36 0% 13 0% 24 0% 30 0% Deferred tax liabilities 0% 0% 0% 0% 0% 0% Other liabilities 94,086 4% 86,584 4% 75,855 4% 82,634 5% 71,343 5% 67,115 5% Total Liabilities 2,194,503 93% 1,798,973 91% 1,538,0 90% 1,364,725 88% 1,208,639 89% 1,169,548 89% NET ASSETS 175,382 7% 176,733 9% 168,351 % 178,329 12% 156,287 11% 139,981 11% Represented by as below: Share capital 21,275 1% 21,275 1% 21,275 1% 21,275 1% 21,275 2% 18,500 1% Reserves 50,357 2% 46,800 2% 45,581 3% 32,074 2% 31,539 2% 28,819 2% Unappropriated profit 54,061 2% 51,939 3% 49,156 3% 57,007 4% 48,046 4% 57,419 4% Equity 125,693 5% 120,015 6% 116,011 7% 1,356 7% 0,860 7% 4,737 8% Surplus on revaluation of assets 49,689 2% 56,718 3% 52,340 3% 67,973 4% 55,427 4% 35,243 3% 175,382 7% 176,733 9% 168,351 % 178,329 12% 156,287 11% 139,981 11% Financial Performance Markup / Return / Interest earned 123,073 0% 114,403 0% 113,662 0% 114,174 0% 99,028 0% 0,092 0% Markup / Return / Interest expensed 68,820 56% 59,578 52% 59,941 53% 68,370 60% 60,823 61% 56,418 56% Net Markup / Interest income 54,253 44% 54,824 48% 53,721 47% 45,804 40% 38,205 39% 43,674 44% Fee, commission and exchange income 19,026 15% 17,013 15% 17,043 15% 15,687 14% 15,394 16% 14,4 14% Capital gains & dividend income,301 8% 11,405 % 15,860 14% 11,3 % 6,908 7% 6,844 7% Other income 1,740 1% 1,549 1% 2,081 2% 3,587 3% 3,268 3% 2,595 3% Noninterest income 31,066 25% 29,967 26% 34,983 31% 30,377 27% 25,570 26% 23,849 24% Gross income 85,319 69% 84,791 74% 88,704 78% 76,181 67% 63,774 64% 67,524 67% Operating expenses 48,528 39% 47,253 41% 42,193 37% 41,703 37% 36,295 37% 35,085 35% Profit before Provisions 36,791 30% 37,539 33% 46,511 41% 34,478 30% 27,480 28% 32,438 32% Provisions 1,192 1% 397 0% 13,296 12% 12,478 11% 20,401 21% 11,060 11% Pretax Profit 35,599 29% 37,141 32% 33,216 29% 22,001 19% 7,078 7% 21,378 21% Taxation 12,571 % 14,389 13% 13,997 12% 6,973 6% 1,578 2% 6,437 6% Aftertax profit 23,028 19% 22,752 20% 19,219 17% 15,028 13% 5,500 6% 14,941 15% ANNUAL REPORT

22 6 YEARS HORIZONTAL ANALYSIS 2017 YoY 2016 YoY 2015 YoY 2014 YoY 2013 YoY 2012 YoY Financial Position PKR Mn % PKR Mn % PKR Mn % PKR Mn % PKR Mn % PKR Mn % ASSETS Cash and balances with treasury banks 159,765 0% 159,836 6% 150,900 54% 97,972 38% 157,930 0% 158,333 20% Balances with other banks 26,404 91% 13,828 31% 20,128 66% 12,8 31% 17,458 42% 30,222 % Lending to financial institutions 26,916 78% 121, % 7,695 93% 111, % 51, % 8,273 81% Investments net 1,295,720 44% 897,131 8% 829,246 48% 561,764 41% 397,959 16% 343,538 8% Advances net 739,772 11% 667,389 15% 578,122 8% 626,704 2% 615,420 6% 654,690 25% Operating Fixed Assets 32,752 0% 32,901 4% 31,706 0% 31,796 3% 32,702 17% 27,950 2% Deferred tax Assets net 7,317 42% 5,136 47% 9,669 2% 9,878 %,955 11% 9,848 24% Other Assets 81,240 4% 77,775 1% 78,895 13% 91,045 13% 80,564 5% 76,675 16% Total Assets 2,369,885 20% 1,975,706 16% 1,706,361 11% 1,543,054 13% 1,364,926 4% 1,309,528 14% LIABILITES Bills payable 13,195 30%,187 11% 9,172 17% 11,012 21% 13,895 3% 14,368 58% Borrowings 360,6 703% 44,864 5% 21,911 42% 37,541 69% 22,239 57% 51,297 95% Deposits and other accounts 1,727,2 4% 1,657,312 16% 1,431,037 16% 1,233,525 12% 1,1,139 6% 1,036,739 12% Subordinated loans 0% 0% 0% 0% 0% 0% Liabilities against assets subject to Finance Lease 15 43% 26 28% % 13 47% 24 19% 30 61% Deferred tax liabilities 0% 0% 0% 0% 0% 0% Other liabilities 94,086 9% 86,584 14% 75,855 8% 82,634 16% 71,343 6% 67,115 24% Total Liabilities 2,194,503 22% 1,798,973 17% 1,538,0 13% 1,364,725 13% 1,208,639 3% 1,169,548 15% NET ASSETS 175,382 1% 176,733 5% 168,351 6% 178,329 14% 156,287 12% 139,981 6% Represented by as below: Share capital 21,275 0% 21,275 0% 21,275 0% 21,275 0% 21,275 15% 18,500 % Reserves 50,357 8% 46,800 3% 45,581 42% 32,074 2% 31,539 9% 28,819 14% Unappropriated profit 54,061 4% 51,939 6% 49,156 14% 57,007 19% 48,046 16% 57,419 16% Equity 125,693 5% 120,015 3% 116,011 5% 1,356 9% 0,860 4% 4,737 5% Surplus on revaluation of assets 49,689 12% 56,718 8% 52,340 23% 67,973 23% 55,427 57% 35,243 59% 175,382 1% 176,733 5% 168,351 6% 178,329 14% 156,287 12% 139,981 6% Financial Performance Markup / Return / Interest earned 123,073 8% 114,403 1% 113,662 0% 114,174 15% 99,028 1% 0,092 5% Markup / Return / Interest expensed 68,820 16% 59,578 1% 59,941 12% 68,370 12% 60,823 8% 56,418 16% Net Markup / Interest income 54,253 1% 54,824 2% 53,721 17% 45,804 20% 38,205 13% 43,674 7% Fee,commission and exchange income 19,026 12% 17,013 0% 17,043 9% 15,687 2% 15,394 7% 14,4 13% Capital gains & dividend income,301 % 11,405 28% 15,860 43% 11,3 61% 6,908 1% 6,844 67% Other income 1,740 12% 1,549 26% 2,081 42% 3,587 % 3,268 26% 2,595 3% Noninterest income 31,066 4% 29,967 14% 34,983 15% 30,377 19% 25,570 7% 23,849 23% Gross income 85,319 1% 84,791 4% 88,704 16% 76,181 19% 63,774 6% 67,524 2% Operating expenses 48,528 3% 47,253 12% 42,193 1% 41,703 15% 36,295 3% 35,085 16% Profit before Provisions 36,791 2% 37,539 19% 46,511 35% 34,478 25% 27,480 15% 32,438 % Provisions 1, % % 13,296 7% 12,478 39% 20,401 84% 11,060 12% Pretax Profit 35,599 4% 37,141 12% 33,216 51% 22, % 7,078 67% 21,378 18% Taxation 12,571 13% 14,389 3% 13,997 1% 6, % 1,578 75% 6,437 23% Aftertax Profit 23,028 1% 22,752 18% 19,219 28% 15, % 5,500 63% 14,941 15% 44 ANNUAL REPORT 2017

23 National Bank of Pakistan NBP SHARE PRICE AND VOLUME TRENDS NBP Market Capitalisation High Low Closing No. of Shares Share Turnover Market Cap 2017 PKR O/S Number % ('Mn) (A) (B) (C) (D) (E) (F=E/D) (G=C x D) December 31, ,127,513,026 2,796, % 3,312 September 30, ,127,513, , % 4,546 June 30, ,127,513,026 1,357, % 125,545 March 31, ,127,513,026 4,292, % 158,861 NBP Share Price & Volumes 2017 Price (PKR) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Volume Mn PSX 0 INDEX 55,000 53,000 51,000 49,000 47,000 45,000 43,000 41,000 39,000 37,000 35,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ANNUAL REPORT