National Bank of Pakistan (NBP): The ‘Public Entity’ factor – By FCEL Research

<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">National&nbsp;Bank&nbsp;of&nbsp;Pakistan&nbsp;(NBP)&nbsp;has&nbsp;sprung&nbsp;to&nbsp;attention,&nbsp;yet&nbsp;again,&nbsp;as&nbsp;the&nbsp;Supreme&nbsp;Court (SC) hammered a judgment&nbsp;regarding&nbsp;pension&nbsp;case&nbsp;against&nbsp;the&nbsp;Bank.&nbsp;The&nbsp;judgment,&nbsp;which is&nbsp;likely&nbsp;to&nbsp;be applied for review&nbsp;in&nbsp;front&nbsp;of&nbsp;a&nbsp;larger&nbsp;bench&nbsp;of&nbsp;the&nbsp;SC,&nbsp;potentially&nbsp;drills&nbsp;earning by&nbsp;a one-off charge of PkR47.7bn (according to&nbsp;actuaries) or PkR22.4/sh&nbsp;and&nbsp;imposes&nbsp;a recurring&nbsp;charge of PkR2bn in lieu of increased pension&nbsp;liability.&nbsp;Fortunately&nbsp;for&nbsp;the&nbsp;bank, the charge can be claimed as a tax deduction that reduces our CY1...