BOP aims for 1,000 branches by 2027

November 14, 2025 (MLN):  The Bank of Punjab (PSX:BOP) has set its sight on digital expansion, SME and agriculture lending, and geographic outreach, signaling that the bank intends to sustain the momentum of its multi-year turnaround.

At its latest corporate briefing, management noted that the bank’s digital strategy is entering its next phase, with BOP already recognized as the country’s largest digital logistic lender.

The bank aims to capitalize on its vast borrower databases including Kissan Card base to build new commercial lending avenues.

BOP also reaffirmed its strong footing in SME and Agri finance, where it serves  the country’s SME borrowers and agricultural borrowers.

The bank plans to add 100 new branches by 2027, with 50 openings each in 2026 and 2027, to get the current figure of 900 branches to 1000.

The bank expects its current account ratio to rise from roughly 24% to over 33% within the next few years.

Despite recent floods, the bank reported only limited exposure roughly Rs650 million, fully collateralized and mostly covered by first-loss guarantees while only a small fraction of agricultural borrowers was found to be affected.

The bank also indicated that, while quarterly dividends were never formally committed, the company will try the best to cater to it but no promises can be made. However, the management had high hopes for the annual dividend.

The NPL ratio stands at approximately 6.5%, modestly better than the market average of over 7.5%. Management also disclosed that recoveries are expected to moderate as the remaining cases are legally protracted and long outstanding.

The repricing of government time deposits has significantly eased funding costs, with roughly RS495 bn reset from rates of 18.39% to 9.65%.

On the finance side, BOP reported a profit after taxation of Rs11.60bn for the nine months ended September 30, 2025, up 37% from Rs8.47bn in the corresponding period last year.

Basic earnings per share increased 39% to Rs3.52 compared to Rs2.53 in 9MCY24, showing strong profitability growth for shareholders.

Total income increased 58% to Rs73.65bn from Rs46.56bn in the prior period, driven primarily by the strong growth in net interest income.

The briefing was attended by prominent market participants, including leading analysts and brokers, as well as CEOs and CIOs of major asset management firms. Industry figures such as Aqeel Karim Dhedhi, Arif Habib, and Muneer Kamal were also present.

The bank's effective cost management and strong core banking operations demonstrated resilience in a dynamic operating environment, positioning BOP for continued growth across its diversified banking portfolio.

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