BOP profit climbs 35%, a clear sign of turning the tide

August 29, 2025 (MLN): The Bank of Punjab (PSX: BOP) unveiled strong consolidated results, posting a profit after tax of Rs6.52 billion [EPS: Rs1.98], marking a solid 35.45% growth from Rs4.81bn [EPS: Rs1.44] recorded in the same period last year.

The bank has declared an interim cash dividend of Rs1 per share, representing 10%.

According to the profit and loss statement, net mark-up / interest income surged by 115.33% YoY, reaching Rs35.82bn against Rs16.63bn in 2024.

This improvement came as mark-up / return / interest expensed declined by 36.47% to Rs99.20bn from Rs156.15bn, despite a 21.86% drop in mark-up / return / interest earned to Rs135.01bn from Rs172.78bn.

On the non-markup side, total income registered at Rs9.53bn, down 4.34% from Rs9.97bn last year.

Fee and commission income rose 39.93% to Rs6.37bn, while dividend income inched up 4.08% to Rs169.3m.

Gain on securities increased 27.47% to Rs2.66bn.

However, foreign exchange income fell 5.22% to Rs723.3m, and other income declined sharply by 83.28% to Rs172.8m.

Additionally, the bank reported a net loss of Rs569m on derecognition of financial assets, compared to a gain of Rs1.36bn in the corresponding period.

Total income stood at Rs45.35bn, up 70.50% from Rs26.60bn in 2024.

Meanwhile, non-markup / interest expenses rose 33.21% to Rs30.0bn, mainly driven by a 31.34% increase in operating expenses to Rs29.46bn and a 512.93% jump in Workers’ Welfare Fund contributions to Rs533.3m.

As a result, profit before credit loss allowance climbed 276.42% to Rs15.35bn from Rs4.08bn last year.

The bank recorded a net charge of Rs464.8m against credit loss allowance, compared to a reversal of Rs3.44bn in the prior period.

Profit before taxation amounted to Rs14.89bn, almost doubling (98.07%) from Rs7.52bn in 2024.

After accounting for taxation of Rs8.37bn, up 209.58% YoY, the bank posted net earnings of Rs6.52bn, translating into basic and diluted EPS of Rs1.98, compared to Rs1.44 last year, a growth of 37.50%.

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