$NBP National Bank of Pakistan (NBP): Management Meeting Takeaways – By Topline Research
$NBP
National Bank of Pakistan
Rs. 201.61
-0.71%
- We had a management meeting with the senior management of National Bank CEO, Mr. Rehmat Ali Hasnie and CFO, Mr. Abdul Wahid Sethi on the recent financial results and outlook.
- Regarding the Shariah conversion of all banks, the banks stated that they are well on their way to starting the transformation and have already submitted their plans. However, the government and the central bank will need to resolve certain issues, particularly those related to making government securities investments Shariah compliant. The structure of bank balance sheets shows that a significant portion of their assets consists of government securities. Therefore, the conversion process will largely depend on resolving this matter.
- Regarding dividends, management noted that the bank holds a very strong capital position, with a Capital Adequacy Ratio (CAR) of 27%. Excessive availability of capital and accumulation may effect ROE hence bank have sufficient liquidity for dividend payouts in the coming years while robust profitability may continue to enhance equity and CAR. To highlight, Banks regulatory requirement for CAR has increased to 14%.