KARACHI, April 27: National Bank has posted a highest ever pre-tax profit of Rs12 billion during 2004, showing an increase of Rs 3 billion or 33 per cent over last year. This was stated by the Chairman and President NBP Syed Ali Raza while speaking at 56th annual general meeting (AGM) here on Wednesday. He said this was the highest profit recorded by any bank in Pakistan. He said the earning per share jumped from Rs8.53 last year to Rs12.68 during 2004. The cost-to-income ratio was estimated at 0.39 per cent, he said.

He said the overall asset grew by 17 per cent to Rs81 billion, advances surged by 37 per cent to Rs60 billion and deposits grew by 18 per cent to Rs70 billion during the period under review.

The shareholders approved a cash dividend of Rs1.50 and a bonus share of 20 per cent.

To a question, Raza said recovery rate on agriculture loans were 98 per cent while the overall loan infection rate was 2 to 5 per cent in the last four years.

He said first Islamic branch of the NBP will be functional in June 2005.

To another question, he said the NBP held 28 per cent units of NIT followed by other two banks with 10 and 8 per cent stake.

Later, talking to newsmen, he said the NBP will offer margin financing facility to retail customer in stock market next month. He said the software was in preparation and will be completed in few weeks.

Ali Raza said the NBP was already offering margin financing facility and noted that this was a good business where bank’s money is secured.—APP