KARACHI, April 30: State-run National Bank has decided to hand out to its shareholders 12.5 per cent cash dividend and 20 per cent bonus shares for the year 2003. President Syed Ali Raza announced this decision at the annual general meeting held on Friday.

He informed the shareholders that in 2003 the bank earned a record high pre-tax profit of Rs9 billion up from Rs6 billion in 2002. He told them that all key ratios also improved considerably.

Cost /income ratio improved to 0.38 from 0.48. Pre-tax return on equity increased to 55 per cent from 45 per cent whereas pre-tax return on assets rose to 2 per cent from 1.4 per cent. Earning per share also shot up to a record Rs10.23 in 2003 from Rs5.5 in 2002.

"All these ratios substantially outperform similar ratios of the peer group of large banks in Pakistan," Mr Raza was quoted as saying in an NBP press release. An accompanying document released to the press showed that NBP with its pre-tax profit of Rs9 billion in 2003 was well ahead other three major local banks i.e. HBL (Rs5.4bn); UBL (Rs4.3bn) and MCB (Rs3.6bn).

Its cost/income ratio of 0.38 was also much lower than those of HBL (0.46); UBL (0.53) and MCB (0.55). The Rs10.23 earning per share too was substantially higher than those of HBL (Rs2); UBL (Rs5.09) and MCB (Rs7.28).

The document showed that total assets of NBP went up to Rs472 billion in 2003 from Rs433 billion in 2002 leaving the banks in peer group far behind with HBL (Rs435bn); UBL (Rs217bn) and MCB (Rs272bn).

Total deposits of NBP also grew to Rs396 billion from Rs363 billion in 2003 again leaving peer banks trailing behind with HBL (Rs361bn); UBL (Rs185bn) and MCB (Rs212bn).