KARACHI: National Bank of Pakistan (NBP) reported after-tax profit of Rs22.8 billion for 2016 on Wednesday, up 18 per cent from a year ago.

It translates into earnings per share of Rs10.69 against Rs9.03 of 2015.

The board also recommended a cash dividend of Rs7.50 per share for the year, which translates into a payout ratio of 78pc after the statutory reserve allocation.

Despite a generally difficult year with downward trends for the banking industry on account of a reduction in the discount rate and lower exchange arbitrage opportunities, the bank recorded growth of Rs3.9bn, or 12pc, in its pre-tax profit, which amounted to Rs37.1bn.

The bank improved its loan book quality as non-performing loans recorded a net reduction of Rs7.9bn during the year. Balance sheet grew to Rs1,975bn, depicting a 16pc increase over the preceding year.

Published in Dawn, February 23rd, 2017