In a significant move at the National Bank of Pakistan’s (NBP) 76th Annual General Meeting (AGM) held on March 25, 2025, shareholders endorsed a robust 80% cash dividend of Rs 8 per share, marking the bank’s strong financial performance for the year ended December 31, 2024. The decision reflects the bank’s commitment to rewarding its investors while showcasing the NBP’s stable financial growth despite a challenging economic environment.
The cash dividend is set to be distributed among shareholders listed in the Shareholders’ Register as of March 17, 2025, with the distribution pending clearance from the Government of Pakistan under Section 17 of the Banks’ Nationalization Act, 1974. This regulation requires the government’s approval to authorize any such dividends for state-owned banks.
The AGM, which took place both at NBP’s head office in Karachi and via electronic means, also served as a platform for various other corporate decisions. The meeting saw shareholders confirming the minutes of two Extraordinary General Meetings (EOGMs) held in November 2024 and January 2025. Both meetings were conducted in hybrid formats, offering shareholders flexibility in participating either in-person or remotely.
During the AGM, shareholders also reviewed and adopted the audited unconsolidated and consolidated financial statements for 2024. These documents, along with the Directors’ Report, Auditors’ Report, and Chairman’s Review Report, were thoroughly discussed and ratified. These reports underscored NBP’s positive performance despite market challenges, positioning the bank for continued growth in the coming years.
One of the key highlights of the AGM was the reappointment of the statutory auditors for the financial year ending December 31, 2025. The shareholders approved the reappointment of Messrs. PwC A.F. Ferguson & Co. and Messrs. BDO Ebrahim & Co., two leading accounting firms, to audit NBP’s financial records. PwC will charge a fee of Rs 45.856 million, including certain statutory certifications, while BDO Ebrahim will be compensated Rs 38.962 million for their services.
The endorsement of the 80% cash dividend demonstrates strong investor confidence in NBP’s management and financial stability. For the bank, the dividend approval signifies that despite the complex economic environment in Pakistan, it has successfully managed to maintain a solid financial position, ensuring profitability and growth. The decision also marks a clear signal to the market and investors that NBP remains committed to maintaining a high level of shareholder value.
The dividend, if fully approved by the government, will further enhance NBP’s attractiveness to investors, showcasing its potential as a stable financial institution in the region. Given the dynamic nature of the financial industry and the global economic climate, this approval reinforces NBP’s position as one of the most prominent players in the country’s banking sector.
As NBP continues to navigate the challenges of the global and local economies, the 80% cash dividend serves as a testament to its resilience, strong financial health, and commitment to shareholders. With the backing of its stakeholders and clear leadership direction, the bank is poised for sustained success in the future, with plans for growth in both the domestic and international markets.
In conclusion, the approval of the 80% cash dividend is a clear reflection of NBP’s stable performance and its capacity to deliver solid returns for its shareholders, making it one of the more lucrative options for investment in Pakistan’s banking sector. The subsequent financial reports and auditor appointments reinforce the bank’s commitment to transparency, accountability, and continuous growth.