Scope of Business and Volume

Karachi: October 26, 2012: After tax profit increased to Rs 11.8 billion higher from last
year by 4%. Earnings per share stands at Rs. 6.38 compare to Rs. 6.16 of corresponding
period last year. Pre-tax return on equity stands at 20.2% with pre-tax return on assets
at 2.0%. Bank’s net interest income in line with the banking sector was impacted due to
reduction in discount rate by 200 bps last year, and 150 bps in August 2012 as well as
increase in minimum profit rate on deposits to 6% effective from May 2012. Despite this
impact was to a certain extent offset through recoveries and balance sheet growth. Non
interest markup income increased by Rs. 2.7 billion or 20.5% compared to
corresponding period last year mainly because of higher dividend and capital gains due
to higher portfolio size. Expenses increased by 14% in line with inflation related salary
increases and other overhead costs. Provision charge against advances show a
reduction of Rs. 929 million and 17% mainly on account of lower fresh accretion and
restructuring of certain corporate loans. Provision against investments shows reduction
compared to corresponding period last year by Rs. 1,370 million or 76% mainly due to
lower impairment loss against shares. Deposits compare to September 2011 are higher
by Rs. 91 billion. The bank continued to replace high cost deposits with low cost
deposits, due to which term deposits declined by Rs. 56 billion resulting in deposit
reduction of Rs. 38 billion from December 2011. The bank is focusing on low risk gold
and agriculture lending and has increased its portfolio by 23% in the segment during
the year.
Product lines and important brands

 Finance available for home purchase, home construction, and home improvement.
 Period of repayment range between 3 to 10 years.
 Loans available up to maximum of Rs. 10 millions (home purchase up to 7.5 million,
home reconstruction up to 7.5 million and home improvement up to 2.0 million).
 Markup choices are not available. Fixed Rate of Markup is 16.50%
 Minimum approval and disbursement timing.
  Limited to area where there are no documentation, fee and resale and foreclosure relative
issues, so to protect the bank's interest.

 20 months’ salary in advance (certain condition apply)

 Minimum documentation.
 Repayable in 5 years.
 No processing charges, no collateral no guarantees, no insurance
 Markup charges at 19% per annum on reducing balance method.
 For only Government Employees(certain condition apply).
 Installments should not increase the 50% of the salary.

 Facility of Rs. 3000 against every1 Gm of gold.

 Markup is 15.50% per annum
 No maximum limit of cash
 Repayable after one year
 Roll over facility
 No penalty for early payment

During the 1960s the bank's network of branches increased, enabling it to give necessary service
to a wider segment of the economy. By adopting a blood policy for promoting and developing a
broad industrial base, it enhances its contribution to planned development. A loan to industry is
nearly one-third of the bank's total loan portfolio. There has been no looking back since. The
bank is extending loan to industry both in public and private sector in diversified areas, ranging
from dice husking and cotton ginning to finished products, light engineering, iron & steel, oil
refineries, telecommunication and emerging non-traditional items.
Besides the traditional industries, which continue to receive funding, the bank has in the recent
past diversified its loan portfolio. New units being extending financing include among others,
Tiles and Ceramics, Manufacturing of Chinese type Rickshaws, consumer Goods, Sell Phone
Companies, Poultry, Carpets and Jute bags, Hotels & Housing. In short National Bank of
Pakistan through its wide network of branches has contributed to the industry development of the
country. It has rendered active help and assigned the government in its endeavors towards
financing of new sectors so to bring about an all around prosperity and development of the
country.
Current Status and Nature of Pakistan
National Bank of Pakistan (the bank) was incorporated in Pakistan under the National Bank of
Pakistan Ordinance, 1949 and is listed on all the stock exchanges in Pakistan. It's registered and
head office is situated at I.I. Chundrigar Road, Karachi. The bank is engaged in providing
commercial banking and related services in Pakistan and overseas. The bank also handles
treasury transactions for the Government of Pakistan (GoP) as an agent to the State Bank of
Pakistan (SBP). The bank operates 1,283(2011: 1,277) branches in Pakistan and 23 (2011: 23)
overseas branches (including the Export Processing Zone branch, Karachi). The bank also
provides services as trustee to National Investment Trust (NIT), Long-Term Credit Fund (LTCF)
and Endowment Fund for student loans scheme.