BOP earnings skyrocket 2.6x in 3MCY26

April 27, 2026 (MLN):  The Bank of Punjab (PSX: BOP) reported a spectacular 2.6x surge in its consolidated profit after taxation for the first quarter ended March 31, 2026, reaching Rs4.69bn compared to Rs1.79bn in the corresponding period last year.

Reflecting this massive bottom-line expansion, the bank's basic and diluted earnings per share (EPS) skyrocketed to Rs1.43 from Rs0.53 in Q1 2025.

The primary catalyst for this phenomenal growth was a massive reduction in the bank's cost of funds, which drastically improved core lending margins.

While mark-up/return earned saw a slight 3% year-on-year decline to Rs66.93bn, the bank successfully slashed its profit/return expensed by a significant 17%, dropping it to Rs44.81bn from Rs53.92bn.

This favorable dynamic resulted in a powerful 47% expansion in net mark-up/interest income, which soared to Rs22.11bn compared to Rs15.05bn in the prior year.

The bank's non-funded operations provided further momentum.

Total non-mark-up income grew by 27% to Rs5.74bn.

This was primarily driven by a stellar 55% jump in fee and commission income (Rs5.06bn) and a 28% rise in foreign exchange income (Rs741.42m).

These gains easily absorbed a net loss on securities of Rs105.10m, which was a sharp reversal from the Rs770.31m gain recorded in Q1 2025.

Bolstered by expanding core margins and robust fee income, the bank's total income surged by 42% to Rs27.85bn.

On the operational front, overheads escalated in line with inflationary trends.

Operating expenses increased by 22% to Rs17.65bn, pushing total non-mark-up expenses up 23% to Rs17.87bn.

However, the sheer strength of the revenue expansion easily absorbed these higher costs, driving the profit before credit loss allowance up by an impressive 99% to Rs9.98bn.

The bottom line received a final major boost from asset quality improvements.

BOP booked a net reversal of credit loss allowances amounting to Rs179.27m, a stark turnaround from the massive Rs997.90m provision charge recorded in the same period last year.

This combination of soaring core income, solid non-funded gains, and provision reversals propelled the profit before taxation up by 152% to Rs10.16bn.

Even after absorbing a heavily increased taxation expense of Rs5.47bn (up 145% year-on-year), the bank securely finalized the quarter with its multi-fold leap in net profit, closing at Rs4.69bn.

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