KARACHI, July 9: National Bank of Pakistan (NBP) — Pakistan’s largest commercial bank — is to announce financial figures for the year ended Dec 31, 2001, on Wednesday.

The bank, which went public with an Initial Public Offering (IPO) in November 2001, has already enriched shareholders with a 100 per cent jump in the stock price in seven months. The share offered at Rs10, is now trading at Rs20.15. But the shareholders are salivating on the prospects of a cash dividend.

“Market talk suggests a dividend close to Re1 (10 per cent) per share, but we remain cautious and expect a decent payout next year,” says Mohammad Sohail, analyst at InvestCap. He points out that the bank has a track record of nil dividends for six years.

Market seemed to share that view on Tuesday as the stock shed 85 paisa during the day’s trading to close at Rs20.15, from overnight opening at Rs20.95. Some 2.761 million shares changed hands on Tuesday, which was lower than the average daily volume of 5 million shares. Typically, the NBP stock, which is one of the most liquid shares in the market, accounts for about 14 per cent of the free float.

Analysts suggest that the recent slip in the market price of NBP stock could also have to do with the Privatization Commission’s announcement of disinvesting more shares, not at par but near the market value. That would increase the free float and result in dilution of the market value of the stock.

The NBP board is scheduled to meet at 3 in the afternoon on Wednesday to review the 2001 accounts. InvestCap projects the Board to unveil after tax profit in the sum of Rs850-950 million (earning per share at Rs2.30 to Rs2.50) for the year, up 85-105 per cent over 2000. The financial model does not incorporate the effects of amalgamation of NDFC into NBP.