LAHORE - National Bank of Pakistan (NBP) announced its 1H2012 earnings, posting unconsolidated PAT of Rs 8.2b, an increase of 1 per cent YoY. In 2Q alone, the bank’s earnings dipped by 23 per cent QoQ and 8 per cent YoY to Rs3.6b. The bank did not announce any payout with the result.

Despite declining net interest income (down 7 per cent YoY to Rs21.1bn) in 1H2012, NBP managed to post a meager growth of 1 per cent YoY in the bottom line. The growth was led by lower provisions and write offs (down 45 per cent YoY) and healthy non interest income of Rs10.5b (up 7 per cent YoY). Nevertheless, substantial increase in operating expenses (up 12 per cent YoY) somewhat curtailed the growth in the bottom line.

Meanwhile, Allied Bank Limited (ABL) announced above expected profit after tax of Rs6.7b in 1H2012 – an increase of 32 per cent YoY. In 2Q2012, ABL posted an impressive 19 per cent QoQ growth in the bottom line to Rs3.6b.

Also, the company announced a second interim cash dividend of Rs1.5 per share, consequently taking the cumulative cash dividend payout to 3.5 per share for 2012 so far. Net interest income remained under pressure posting a decline of 20 per cent YoY in 1H2012. Nevertheless, huge gains on sale of securities (up 5x QoQ) in 2Q helped supported the decline in the topline. Resultantly, non interest income jumped by a massive 129 per cent YoY in 1H2012. In addition, lower provisions and write offs of Rs281m (down 72 per cent YoY) also helped shore up the earnings.