BOP’s profits dip slightly on capital loss, higher interest expenses

By MG News | August 17, 2022 at 05:58 PM GMT+05:00

0:00

August 17, 2022 (MLN): The Bank of Punjab (BOP) reported net profits for 1HCY22 at Rs5.4bn (EPS: Rs1.8), depicting a slight decline of 2.4% YoY, mainly due to loss on securities and higher interest expenses.

The net interest income of the bank settled at Rs15.9bn during 1HCY22, increasing 14% YoY. Non-interest income dropped by 17.2%YoY, primarily due to capital loss worth Rs861 million booked during the period compared to gains of Rs1.6bn in the corresponding period last year.

Excluding capital loss, non-interest income reported an improvement of 62%YoY led by a 35.5%YoY increase in fee and commission income and a 4.9x YoY increase in income from foreign exchange operations.

On the expense side, operating expenses reported a significant increase of 36.5% YoY, from Rs10.2bn to Rs13.97bn. With this, the cost-to-income ratio stands at 72% compared to 57% in 1HCY21.

Moreover, the bank posted a huge reversal during the review period, clocking in at Rs2.94bn compared to the provisioning charge of Rs632mn recorded in the same period last year which provided a cushion to the bank’s profitability.

Lastly, the effective tax rate was set at 35% during 1HCY22 against 24% last year.

Profit and Loss Account for the half year ended June 30, 2022 (Rupees in '000)
	Jun-22	Jun-21	% Change
Mark-up/return/interest earned	58,937,443	38,927,588	51.40%
Mark-up/return/interest expensed	43,015,246	24,984,717	72.17%
Net mark-up/return/interest income	15,922,197	13,942,871	14.20%
NON-MARK-UP/INTEREST INCOME
Fee and commission income	3,403,914	2,512,352	35.49%
Dividend income	221,549	105,001	111.00%
Foreign exchange (loss) income	685,798	140,764	387.20%
Income/(loss) from derivatives	-	-
Gain / (loss) on securities - net	(861,011)	1,614,972	-
Other income-net	198,440	34,202	480.20%
Total non-mark-up/interest income	3,648,690	4,407,291	-17.21%
Total Income	19,570,887	18,350,162	6.65%
NON-MARK-UP/INTEREST EXPENSES
Operating expenses	13,970,580	10,233,070	36.52%
Worker’s welfare fund	147,071	167,415	-12.15%
Other charges	33,794	502	6631.87%
Total non-mark-up/interest expenses	14,151,445	10,400,987	36.06%
Profit before provisions	5,419,442	7,949,175	-31.82%
(Reversal) / Provisions and write offs - net	(2,940,463)	632,328
Extra ordinary/unusual items	-	-	-
Profit before taxation	8,359,905	7,316,847	14.26%
Taxation	2,949,314	1,772,948	66.35%
Profit after taxation	5,410,591	5,543,899	-2.40%
Earnings per share - Basic and Diluted (in Rupees)	1.80	1.85	-2.70%

Copyright Mettis Link News

Related News

Name	Price/Vol	%Chg/NChg
KSE100	133,695.00 131.61M	1.32% 1745.93
ALLSHR	83,036.47 343.86M	1.18% 967.21
KSE30	40,876.71 36.49M	1.21% 488.95
KMI30	192,264.61 38.88M	0.46% 887.79
KMIALLSHR	55,621.18 170.38M	0.77% 427.21
BKTi	36,932.04 22.16M	3.08% 1103.79
OGTi	28,446.67 1.39M	0.00% 0.33

Symbol	Bid/Ask	High/Low

Name	Last	High/Low	Chg/%Chg
BITCOIN FUTURES	109,565.00	110,525.00 107,865.00	-850.00 -0.77%
BRENT CRUDE	68.00	68.10 67.22	-0.30 -0.44%
RICHARDS BAY COAL MONTHLY	97.50	0.00 0.00	0.75 0.78%
ROTTERDAM COAL MONTHLY	106.00	106.00 105.85	-2.20 -2.03%
USD RBD PALM OLEIN	998.50	998.50 998.50	0.00 0.00%
CRUDE OIL - WTI	66.26	67.18 65.40	-0.74 -1.10%
SUGAR #11 WORLD	16.37	16.40 15.44	0.79 5.07%