NBP’s income mounts to Rs 108 billion for 2019

Corporate Ambassador/KARACHI: National Bank of Pakistan has reported increase in its income to Rs. 108.11 billion in calendar year 2019, showing 11.5% increase over Rs. 96.92 billion income of prior year. Meeting of the Board of Directors (BoD) of National Bank of Pakistan (Bank) was held on February 28, 2020 at the Bank’s Head Office in Karachi. The BoD approved standalone and consolidated financial statements of the Bank for the year ended December 31, 2019.

The Bank recorded solid growth in terms of both balance sheet size and income generation. Despite a generally difficult year for the banking industry, net mark-up / interest income closed 18.5% higher YoY at Rs. 71.9 billion (2018: Rs. 60.7 billion). NBP maintained its non-mark-up / interest earning at Rs. 36.20 billion. Accordingly, total income of the Bank closed at Rs. 108.11 billion i.e. 11.5% higher than Rs. 96.92 billion of prior year.

Total expenses for the year amounted to Rs. 65.70 billion against Rs. 55.69 billion for the year 2018. This amount includes a total of Rs. 7.3 billion related to extraordinary items. Thus, the increase in operating expenses was only 5.0% and YoY growth in profit excluding extraordinary items and before provisions improved to 21%.

Reflecting the trend of asset quality deterioration observed across the industry this year, the Bank experienced a 11.4% increase in non-performing loans. During the year, the Bank provided against NPLs, diminution in investments and certain financial improprieties. Based on the above, provision charge amounted to Rs. 14.2 billion, and profit before tax stood at Rs. 28.00 billion, being 5.7% lower than Rs. 29.68 billion for the prior year. NBP has consequently focused on strengthening its Balance Sheet through this provisioning and through building contingency buffers for a total of Rs. 21.5 billion. Due to retrospective applicability of super tax, this year, the Bank’s tax burden amounted to Rs. 12.35 billion, resulting into the Bank’s profit after tax closing at Rs. 15.8 billion, 21% lower YoY. This translates into earnings per share of Rs. 7.43.

Total assets closed at Rs. 3,124.39 billion, depicting a 11.6% growth from Rs. 2,798.56 billion a year before. Gross advances increased by 8.7% to Rs. 1,151.31 billion, investment closed 12.1% up at Rs. 1,417.65 billion, and deposits grew by 9.3% to Rs. 2,198.05 billion.

The Bank is facing contingencies related to pensionary benefits of its retired employees, and has filed a review petition. Pending the decision for review petition, financial impact of the subject case has not been included in the instant financial statements as the Bank looks forward to a favourable outcome of the case.

The BoD is conscious of the fact that the shareholders look forward to receiving a dividend. The Board deliberated at length whether or not cash dividend should be recommended. Keeping in view the significance of the amount involved in the pension related case, the BoD considered it prudent to retain the profits for the time being to maintain & further strengthen capital base of the Bank. Accordingly, the BoD did not recommend any dividend for the year 2019.

Going forward, the year 2020 marks the Bank’s 71^st year of service to the Nation. The Bank’s business strategy is evolving to ensure a focus on inclusive development through reaching and supporting underserved sectors including SME, Microfinance, Agriculture Finance, and finance for Micro-Housing on a priority basis.

Building a technology platform and digital banking capability will be a central part of this strategy as will the inculcation of a performance driven culture within the institution.

The emphasis for 2020 will be on building a strong platform in terms of processes and controls based on accountability and meritocracy.

Big decline in OPEC oil: Good news for consumers

Corporate Ambassador/ISLAMABAD: OPEC crude oil price has further dropped to below $50 this week because of low-demand amid growing corona-virus problem globally. In comparison with OPEC oil price in Dec-2019, the crude oil price has declined by $18-20 per barrel by Feb-28, 2020. In Dec-2019 OPEC crude oil price was around $66/barrel. According to experts OPEC oil price can further drop and may fall below $45/barrel in coming days that will be a good sign for consumers and a blow to price hike.

As rupee value has improved in recent weeks, we must anticipate that government would reduce domestic oil prices by 15-20 rupees a litre from 1st March 2020 (midnight of Feb-29), to give relief to the people. Hope to hear a good news from govt on this front on the night of Feb 29, the last day of this month.

Screen shot of latest OPEC oil price is attached with this mail. On Feb 26, the OPEC website is showing average $54/barrel price, but the oil price in OPEC market has dropped to around $50/barrel till Feb 28. So, in coming few months, we will further observe decline in prices of essential commodities and cost of transportation in Pakistan and abroad.

16th Corporate Ambassador Awards _ another milestone of success

Corporate Ambassador/KARACHI: 16th Corporate Ambassador Awards organized in Karachi on 30th January 2020 proved another milestone of success. Several legends, renowned dignitaries and famous personalities attended the ceremony at Beach Luxury Hotel. As usual, a Hi-Tea was arranged at the 007-Restaurant for the participants of the awards ceremony. Several group photos was organized at the Hi-Tea, which is part of our awards program that aimed at promoting interactions and popularity of the participants. Sobia Butt, a famous personality and FixIt activist and Hadeel Sahal Albalushi, TV Host and multi-talented personality, were the Hosts of 16th corporate ambassador awards.

Several dignitaries belonging to different professions graced the event with their participation in Hi-Tea and Awards ceremony. In the picture above, Dr Lubna Hafeez, President Nayyab Welfare, Human Health Care & Orphanage Association, Karachi, is receiving her award. She is also a renowned TV analyst.

Afshan Rashid, Karachi famous beautician and founding member of Pakistan Beauty Alliance is receiving her “Best Beautician Award”.

Group photo of the participants during Hi-Tea at 007-Restaurant of Beach Luxury Hotel, Karachi.

Rozina Jalal, Chairperson of 16th Corporate Ambassador with Noor Afshan, a businessperson.

Glimpses of Hi-Tea. Left-2-Right: Col. (Retd) Chaudhary Sabahuddin, chief security officer, Citibank, Javed Mahmood, Editor Corporate Ambassador and Founder CA Awards. Rozina Jalal, renowned Astrologer, chairperson of 16th awards and Syed Ibne Hasan, Vice-Presideent and Head of Corporate Communication Division of National Bank of Pakistan, Karachi.

Below are glimpses of Corporate Ambassador Awards on Google

 

Below are the glimpses of 15th Corporate Ambassador Awards, held at Beach Luxury Hotel in 2019.

Two new innovative changes were made in the format of the Corporate Ambassador Awards _ First was the live string puppets performance by Thespianz Theater and second change was six national songs presented by famous singer Sidra Tahir, Farzana Mirza and Hassan Mirza, The aim of including national songs in this ceremony was to promote national enthusiasm in the people as the 15^th Corporate Ambassador Awards ceremony was organized close to March 23 (Pakistan Resolution Day).

Shaukat Mahmood, NBP Group Chief, was the Chief Guest of the awards ceremony while President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Daroo Khan Achakzai was the Guest of Honour. CEO AJ Sports Syed Amin Ullah Hussaini, Secretary General America-Pakistan Business Development Forum Syed Nasser Wajahat also participated at Guests of Honour.

Managing Director of Karachi Water and Sewerage Board Assaullah Khan was also scheduled to participate in this awards ceremony, but being a member of Board that is looking after arrangements of the Pakistan Super League (PSL) in Karachi was busy in finalizing arrangements to organize Final match of the PSL. Javed Mahmood, Chief Editor Weekly Corporate Ambassador & Founder of CA Awards organized the ceremony. Sobia Butt, senior educationist and Social Activist of Fixit was the host of the ceremony.

Other important guests included CEO Skill Development Kashif Hashmi; CEO Gresham Group Irtiza Sarwar, Col. (Retd) Mukhtar Ahmed Butt, Mubasher Mir, President Karachi Editors Club/TV Analyst and Resident Editor of Roznama Pakistan; Samar Nizam, Managing Director of VNN TV Channel and popular Host of Awaz TV in Karachi; Manzar Naqvi, Secretary-General, KEC and Executive Editor The Financial Daily; Rozina Jalal, renowned Astrologer/TV Analyst; Syed Turab Shah, Group Director Marketing Daily Ausaf, Karachi; Ali Nasir, TV Anchorperson, Dr Shujaat Mubarak, Dean of Business Management/TV Analyst; Muttahir Ahmed Khan, Senior Educationist/TV Analys; Lubna Punjwani, a High-Profile Educationist/Trainers and multi-talented personality. Roomi Syed Bukhari, also a multi-talented personality, attended the awards ceremony. Renowned philanthropists and Social Activists, Dr Lubna Hafeez, Dr Afrozia Tabbassum Chairperson of Tabbo Welfare Society; Rizwana Farooq CEO Nai Roshni School; Famous PTV’s Host Nusrat Haris, Fashion Designer Quratul Ain Kalhoro, Saira Danish, Sharmeen Shafiq Khan, TV Anchorperson Kokab Farooqi and Columnist Kiran Siddiqui also participated in the awards ceremony.

Javed Siddiq Mitiwala, Chairman of Khadm-e-Insaniyat International Welfare Trust, also participated in the awards ceremony.

15^th Awards ceremony was started with Tilawat. Salman Siddiqui, Deputy GM CCD of the Sui Southern Gas Company Limited cited few verses from Holy Quran while renowned Naat Khwan Fozia Sadiq presented Naats.

After Naat, host of the awards ceremony Sobia Butt read the welcome address. Then the live performance of String Puppets was started. The puppets presented Cultural Dance of all the four provinces, Balochistan, Sindh, Punjab and Khyber Pakhtunkhwa, one by one, that was really a mesmerizing performance of the Thespianz team, led by its founder Faisal Malik. In the end the awards were distributed among the winners.

Background of Corporate Ambassador Awards

Senior Journalist and TV Analyst Javed Mahmood, has taken the initiative of organizing Corporate Ambassador Awards in 2012 in Karachi. To his credit he has more than 28 years’ experience in English Journalism. He has served as Resident Editor of daily The Nation and Pakistan Today in Karachi and currently working as Founder/Chief Editor of Corporate Ambassador.

Ms Rozina Jalal, renowned Astrologer/TV Analyst and Chairperson of 15th Corporate Ambassador Awards Jury for Women Awards presented the Vote of Thanks at the end of the ceremony.

A very warm welcome for Dr Afrozia Tabassum at Beach Luxury Hotel before the start of 15th CA Awards ceremony. Founder/President CA Awards Javed Mahmood, Rozina Jalal, Turab Shah and other guests welcomed her.

Dr Afrozia receiving her award

Group Photos of Guests

The purpose of these awards is to appreciate and acknowledge the achievements of the organizations and individuals doing excellent work and to motivate others to seek excellence in their profession, career and work for well-being of the needy people. Since 2012, more than 580 organizations and individuals, including students and social activists, have received this prestigious award. So far 15 awards programs have been organized _ 11 in Karachi and four in Islamabad.

Coverage in Daily Ausaf, Karachi.

 The Financial Daily reports 15th Corporate Ambassador Awards ceremony.

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Now LPG Cylinders Mafia fleecing consumers

Corporate Ambassador/ISLAMABAD: After sugar and flour mafias have looted billions of rupees from the consumers through artificial price hike, now LPG cylinders mafia has started robbing the consumers. LPG Mafia is not only overcharging the consumers, but also supplying under-weight cylinders. A brief survey in Islamabad showed following ways the LPG mafia robbing consumers:

Under-weight LPG cylinders are being supplied to the consumers because there is no mechanism to check the actual load of gas in cylinders. Consumers pointed out that normally a 14-kg cylinder provides gas for 18-20 days, but an under-weight cylinder ends in just 14 days.

Price of gas too is frequently changing. In Dec 2019, 14-kg LPG cylinder was being supplied at 1800, but its price went up to 2500 rupees by mid Jan-2020. However, in the last week of Jan-2020, the price fell to 2100. Worth noting is that the import of cylinders and their supply to consumers within two weeks is not possible. It means the LPG mafia manages the prices in the absence of a strong check and balance mechanism. Although it is the responsibility of the OGRA to monitor supply and prices of LPG cylinders, including pressure/weight, but the authority perhaps is least interested in managing this task that is evident from a free hand to LGP dealers in managing prices and supplying under-weight cylinders to mint money from the consumers.

Important to note is that in winter, more than half of Pakistani consumers relief on LPG gas to meet their domestic consumption as sui gas supply disappears. At present, only 20 percent of the population has access to natural gas and these people too face gas shortage in winter season.

How to Monitor Prices and Pressure/Weight of Gas

OGRA must ensure that every distributor must display price, provide a receipt to each and every consumer and also measure pressure of cylinder before buyer. If this is done, the issue of under-weight and over-charging will end.

OGRA must set up customers complaint centers to take action against distributors involved in cheating and fleecing.

 

Moazam Khan _ An Emerging Author

Shaikh Moazam Khan _ an emerging author

After writing four books in Urdu, Karachi’s businessman-turned-columnist Shaikh Moazam Khanh is writing his next book in English. The book that is being compiled now, will be based on columns of the author published online and in the newspapers.

Author has chosen the title “Az Khud Notice” (Suo Moto) for his books published in Urdu while for coming edition in English the title will remain the same “Suo Moto”. Moazam Khan said that it is his ambition to write columns on important national and international issues with the aim to promote the image and cause of Pakistan and point out areas that need improvement in policy and decision-making in the country.

His books reflect author’s keen interest in the affairs of Pakistan and a deep observation of different issues that need policy makers attention to make Pakistan a stronger country. Within this year, 2020, Moazam Khan will launch his fifth but first book in English, comprising his informative columns.

For example, in his latest column published online in English in Feb 2020, Khan said that in contemporary scenario, South Asian saga has significant nature to alter the course of international system. The region consisted of volatile nature of geography, political trends, and economic opportunities, strategic interests of major regional and global powers. The competing interests of major powers in the region ignites controversial dilemma to cope up with their respective gains. In overall situation Pakistan, relatively progressive state, is going through a hard phase of strategic choices. The looming threats at eastern and western fronts along with internal political transition are the key factors to set up policy options. Given the critical nature of these subjects, civilian leadership and Pakistan’s military have understanding whenever the state of Pakistan is facing the challenges on realistic paradigm.

Unfortunately, this understanding has been seen as controversial issue to emerging democratic society for few actors. Despite the fact that such kind of understandings represents masses appeal, lobbying against Pakistan Army has always been remained mantra of pseudo liberals, Indian journalists, western propagandists and few not to mention. A recent demonstration of such kind of mantra appeared on January 23, when Aqil Shah wrote an article in the New York Times labeled “How Pakistan’s Politicians helped the military”.  The author’s academic work represents a biased narrative as well as anti-Pak army agenda to thwart the role of Pakistan in emerging strategic competition at regional and global level.

 

Pakistan has been in state of turmoil most of its political history. Since independence, the political elite, feudal lordships, and religious ranks played controversial role to malign the democratic transition. The core to backlash has been conflicting interests of political mafias. This mafia has always underestimated the nature of threats which their state is going through at eastern and western fronts. Pakistan Army played an important role for the survival of state which has been at stake throughout its history. For a state, its survival is attached to security. Given the situation at eastern and western front of Pakistan, it is the Army who managed to defend the borders. The course of actions taken by army should be applauded. Being a unique institution like any of security conscious state, army has sacrificed more than efforts made under the civilian leadership. Mr. Shah also argued about the former PM Nawaz Sharif is being victimized for misuse of public office under corruption charges. On this note, most of scholars have praised that the institution in Pakistan are progressing and working on the constitutional order. Nawaz Sharif is facing trial under the constitutional organs. The very constitution incorporated under the democratic regimes in Pakistan. The military did not outlined the constitution of Pakistan and never outstripped its powers as given in the constitution.

 

Given the extension of Army chief, Mr. Shah must be aware of the fact that state have moral authority and legitimate to entertain the professional experience. In most of the public and private organizations senior members are key to their success. Their experience and professional qualifications represents a great deal for the survival of organization. In case of Pakistan, army as an institution is set to manage the survival of Pakistan. Like any other military of major powers of the world, the matter of extension, a legislative process as given in the constitution was adopted to amend the Army Acts. The very politicians, Mr. Shah urged being victimized, favors the amendments. Why don’t Mr. Shah asked Civilian leadership that why they favor the amendments? He must ask Indian PM Modi to remove Bipin Rawat for an accommodation which he made recently. Fact of the matter is that Mr. Shah is well aware of the fact that Pakistan well capable to face the existential challenges. The civil military relations in Pakistan are progressing on democratic lines. The incumbent govt. has set up plan for overall restructuring of the economy and reformation of the society at large. Though it entails hard choices and tough economic aspects but it will bear fruits in future.

Pakistan geostrategic environment demands internal harmony of interest among all the competing actors. Fortunately, a sincere leadership with a progressive vision is exercising its functions with fruitful efforts. These efforts are inevitably attracting the peace and prosperity for the people of Pakistan. A vibrant economy, civil society, and media are playing an important role for the development of the society. Pakistan has several tourist attractions points in the Northern Areas where tourists can explore the natural treasure. (To Be Updated soon)