BOP profit surges 44% to Rs9.37bn in 1HCY26

August 28, 2026 (MLN): The Bank of Punjab (PSX: BOP) recorded a 44% increase in its consolidated net profit for the half year ended June 30, 2026, with profit after taxation climbing to Rs9.37bn from Rs6.52bn in the corresponding period last year.

Showing this strong bottom-line growth, the bank's basic and diluted earnings per share (EPS) expanded to Rs2.86 from Rs1.98 in 1HFY25.

The Board of Directors has declared an interim cash dividend of Rs1.60 per share (16%) for the half year ended June 30, 2026.

Total income grew 24% year-on-year to Rs56.13bn from Rs45.35bn in the prior period.

On the core banking spread, mark-up/return/interest earned declined 3% to Rs130.57bn, while mark-up/return/interest expensed fell at a significantly faster pace of 15% to Rs84.45bn a favorable divergence that caused net mark-up/interest income to expand by a strong 29% to Rs46.12bn from Rs35.82bn, forming the primary engine of earnings growth.

Non-markup/interest income showed a mixed but broadly positive picture, rising 5% to Rs10.01bn from Rs9.53bn. Fee and commission income surged 50% to Rs9.55bn, foreign exchange income more than doubled to Rs1.95bn from Rs723.25m, and other income grew 81% to Rs313.09m.

These gains were partially offset by a swing to a net loss on securities of Rs1.16bn from a gain of Rs2.66bn last year, a 37% rise in net loss on derecognition of financial assets measured at amortized cost to Rs782.17m, and a 17% decline in dividend income to Rs140.18m. Income from derivatives recorded no contribution in either period.

On the expenditure side, operating expenses rose 20% to Rs35.34bn. Workers' Welfare Fund declined 15% to Rs454.35m, and other charges fell 72% to just Rs1.11m. Total non-markup/interest expenses rose 19% to Rs35.79bn from Rs30.00bn.

Profit before credit loss allowance grew 33% to Rs20.34bn from Rs15.35bn. Charge against credit loss allowance and write-offs declined sharply by 89% to just Rs48.91m from Rs464.75m, providing a meaningful boost.

A marginal share of loss from associate of Rs198,000 was recorded with no prior year comparable.

Profit before taxation rose 36% to Rs20.29bn from Rs14.89bn. Taxation net increased 31% to Rs10.29bn from Rs8.37bn, rising at a proportionally smaller pace than pre-tax profit growth and providing an additional tailwind that amplified the bottom-line result, delivering the 44% increase in profit after taxation for the half year.

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