NBP SWOT ANALYSIS

Muhammad Qasim

BM-26464
National Bank of Pakistan is one of the largest commercial bank operating in Pakistan. It has
redefined its role and has moved from a public-sector organization into a modern commercial bank.
The Bank's services are available to individuals, corporate entities and government. While it
continues to act as trustee of public funds and as the agent to the State Bank of Pakistan (in places
where SBP does not have presence). It has diversified its business portfolio and is today a major lead
player in the debt equity market, corporate investment banking, retail and consumer banking,
agricultural financing, treasury services and is showing growing interest in promoting and developing
the country's small and medium enterprises and at the same time fulfilling its social responsibilities,
as a corporate citizen.

National Bank of Pakistan is today a progressive, efficient, and customer focused institution. It has
developed a wide range of consumer products, to enhance business and cater to the different
segments of society. Some schemes have been specifically designed for the low to middle income
segments of the population. These include NBP Advance Salary, NBP Saiban, NBP Kisan Dost, NBP
Cash n Gold.

The bank has implemented special credit schemes like small finance for agriculture, business and
industries, administrator to Qarz-e-Hasna loans to students, self-employment scheme for
unemployed persons, public transport scheme. The Bank has expanded its range of products and
services to include Shariah Compliant Islamic Banking products. For the promotion of literature, NBP
recently initiated the Annual Awards for Excellence in Literature. NBP will confer annual awards to
the best books in Urdu and in all prominent regional languages published during the defined period.
Patronage from NBP would help creative work in the field of literature. The Bank is also the largest
sponsor of sports in Pakistan. It has provided generously to philanthropic causes whenever the need
arose.

NBP's business model is based on a detailed analysis of its key strengths, weaknesses, opportunities
and threats – a so-called SWOT analysis. Our competitive strengths and business opportunities
clearly distinguish the Bank from other market participants. It is this competitive edge that allows us
to successfully deal with the challenges of cyclical markets, and to act in the best interests of our
discerning clients.

Strengths
 Clearly focused business model with a unique specialization, cycle-neutral business approach,
and global presence in all key transport markets
 Conservative and sustainable business policy
 Transparent structures, high degree of flexibility and fast decisions
 Highly qualified and experienced staff
 Customized products and services, high level of client service, as well as close contacts to
manufacturers and leasing companies
 Extensive market and asset expertise
 Credit portfolio diversified by multiple criteria and categories
 Advanced risk management and pricing systems
 Granular and matched-maturity funding
 Sound capital base due to own funds
 Custodian of Govt

Muhammad Qasim BM-26464

 o N.B.P is a Custodian of government capital and Govt. Business owner as
well as custodian of public money
 Agent of State Bank
o N.B.P work as agent of State Bank of Pakistan
 Old and sound Financial institution
o N.B.P is old and Sound financial institution among other banks and high
profitability and it is the lender of govt. agencies.
 Western union facility
o National Bank of Pakistanis only one bank which provides the facility of
Western union to their customer. Through western union money is
transfer in Pakistan from aboard.
 Vast Network
o N.B.P is the first bank which has huge operational network all over the
Pakistanas well as abroad
 Job Security
o Employee Job security, benefit and recognition hard work of staff through
incentives
 Customer Satisfaction:
o Due to govt. bank, Customers feels secure their money in N.B.P and enjoy
the satisfaction
 Online Banking:
o Online Banking is also strength of N.B.P because it has more then 1250
branches is online. It helps the fast service to the customers and we also
check the balances and daily transactions just at one key press.
 Highest Rating and Receive awarded
o N.B.P highest credit rating bank in the Pakistan among all other banks and
received many awards locally and internationally due to its efficiency.
 Product and Services
o N.B.P launch many products and services to their customer so N.B.P try to
improved the quality of life our customer
 Rules and Regulation
o Employees of N.B.P are strict follow the rules and regulation impose by
the bank. In this way the output of the bank is enhances.
 More Deposit
o N.B.P has a lot of deposit of the customer among the other bank in the
market.

Weaknesses
 Higher liquidity costs, compared to most competitors
 Direct relationship between the Bank's business development and GDP growth
 Relatively high sector exposure
 Global presence requires high staff resources
 High staff costs due to high levels of employee qualification in terms of academic expertise and
experience
 Exposure to the Euro/US dollar exchange rate, with an impact on growth and results
 Poor Dealing

Muhammad Qasim BM-26464

 o Employees of the bank know that their job is secure so their behavior with
customer is not professional. N.B.P Employees rudely behave with customers
and as well as with each other.
 Political pressure
o Being Govt. bank political pressure affects the negative way and provides the
loan to the customer under pressure which creates the negative affect on bank
employee.
 Lack of online Branches
o Online work in now day is become very popular but N.B.P has limited online
branches
 Lack of Advertisement of Product
o Lack of modern financial/banking product, the bank falls far behind when
innovative and new schemes are considered. There is no proper system for
advertisement & marketing of products
 Favoritism
o The promotion and bonuses are powered by senior favoritism will and decision
which affect the employee’s performance negatively. That is why, Condition of
Bank branches is very poor and service to the clients is slow
 Decision making
o Resistance to change and decision making process are slow.

Opportunities
 Realization of margins in line with risks taken
 Expansion of anti-cyclical Investment Management activities
 Building new client relationships
 Numerous initiatives taken to broaden the product portfolio and enhance cross-selling
 Funding available through access to the extensive liquidity offered by the German Cooperative
Financial Services Network
 Expanding the advisory and other services offered to clients, investors, and banks
 Boosting NBP's reputation as a reliable partner to the Govt. of Pakistan
 Growing Banking System
o Nowadays banking system is growing rapidly so N.B.P have opportunities to apply
advance standard and more contribute into the market.
 Trust Due to Govt Bank
o N.B.P more trustable due to government bank so it has opportunity to improve itself
and increase market share among other banks
 Economic Activities
o Now a day economic and business activities are increasing, N.B.P play roll in trade and
commerce for the benefit of their customer. N.B.P has vast opportunity to introduce
new products and services because its branches spread all over the Pakistan and it
has large number of customer.
 Electronic Banking
o Now a day, a world becomes a global village due to advancement of technology
particularly in computer field. So N.B.P introduce new technology to provide the good
service of their customer.
 Marketing Plan
o Develop organize the aggressive marketing plan for promotion the bank and its
products. Can lunch a marketing strategy and offer new and innovative products to
capture the business from other banks.

Muhammad Qasim BM-26464

  Increase Business
o N,B,P has ability to become number one bank in Pakistan due to vast operational
network, large number of customer area and government of bank. With proper
planning can hunt more and more business from the public and private sector as
people still trust over it.

Threats
 High level of early repayments negatively impacting the net interest margin
 Rising number of insolvencies, especially in the shipping and offshore markets
 Significant decline in transport asset values, in various market segments
 Rising threat of recession, on a global scale
 Distortions on the global financial markets
 Indebtedness of certain industrial nations and emerging economies
 Rise of the US dollar against the euro
 Further increasing regulatory requirements
 Development of commodity prices, in particular oil prices
 Number of Commercial Bank
o Number of commercial bank are opened, operating their business and provide same
facilities and product to the customer which provide N.B.P so It is threat for N.B.P.
 Competition with other Banks
o Competition with foreign bank because they offer many service to their customer are
totally free or minimum prices.
 Political Influence
o Political influence is also threat for N.B.P because it is a government bank and political
pressure affects the performance of it.
 Customer Satisfaction
o Customer satisfaction is very important for business but in N.B.P there are no proper
systems to remove the customer complaints for its satisfaction.
 High Interest Rates
o N.B.P receive high interest rate when other banks offer lower interest rates. Interest
rates offered by N.B.P like interest on loan, extra higher service charges.

Muhammad Qasim BM-26464