KARACHI, July 15: National Bank of Pakistan (NBP)—Pakistan’s largest commercial bank—announced after-tax profit at Rs1.1 billion for the year ended December 31, 2001 and cash dividend of Rs1.25 per share, both of which were better than market expectations.

The financial results and dividend approved by the Board at its meeting on Saturday were announced as the stock market opened on Monday. The share in NBP nonetheless reacted with a rupee drop to close at Rs18.95. For seven months since the NBP’s Initial Public Offering (IPO) in November 2001, investors have reaped a return of 115 per cent in the form of capital gains and dividend.

Brokerage InvestCap had forecast taxed profit to exceed the billion rupee mark, if numbers incorporated the situation post the bank’s merger with National Development Finance Corporation (NDFC). Cash dividend at 15 per cent—after six blank years— was a pleasant surprise, though the board clarified that it was subject to approval/clearance from the State Bank of Pakistan.

According to the numbers announced on Monday, the bank posted 31 per cent growth in total revenue to Rs16.9 billion, from Rs12.9 billion the year before. Profit before provisions and taxes increased 71 per cent to Rs8.2 billion, form Rs4.8 billion.

The bank provided Rs 2.5 billion against advances, investment and other assets, which were more than twice the sum of Rs1.2 billion provided the previous year.

The top line growth travelled down to the bottomline with pre-tax profit up about 200 per cent to Rs3 billion, from Rs1 billion. Taxed profit was higher by 150 per cent to Rs1.1 billion, from Rs461 million and represented growth in earning per share to Rs3.08 from Rs1.24.

The Board has called the annual shareholders’ meeting on August 19 at Karachi.