KARACHI, March 20: National Bank of Pakistan (NBP) has posted a record pre-tax profit of Rs19 billion in 2005, showing a rise of 58 per cent over the last year. The bank has announced a cash dividend of Rs2.50 and a bonus share at the rate of 20 per cent, after recording a 100 per cent jump in the earning per share, rising from Rs10.48 in 2004 to Rs21.51 in 2005.

According to an announcement here on Monday, the NBP board of directors in its recently held meeting had approved the financial statements for the year ending December 31, 2005.

NBP Chairman and President S. Ali Raza informed the board that 2005 had been a very profitable year for the bank as the after-tax profit doubled in 2005 over 2004 and was yet again the highest in the Pakistan’s financial sector history.

All key performance indicators registered an impressive growth. Pre-tax return on equity stood at 61 per cent while pre-tax return on assets further improved to 3.4 per cent from 2.4 per cent of the last year; cost to income ratio of 0.34 remained in the top tier.

Increase in profit was achieved through strong growth in core banking income. Net interest income increased by Rs9 billion (63 per cent). Dividend income also made a healthy contribution as it grew by Rs445 million. Advances increased by Rs48 billion due to an impressive contribution by all business units.—APP