BOP reports double digit earnings growth in CY25

February 17, 2026 (MLN): The Bank of Punjab (PSX: BOP) posted a profit after tax (PAT) of Rs15.53 billion for the year ended December 31, 2025, marked a 16.9% year-on-year (YoY) increase compared to Rs13.28bn in CY24.

Earnings per share (EPS) rose to Rs4.71 from Rs4.00 last year, up 17.8% YoY.

The board declared a final cash dividend of Rs1.5 per share (15%), in addition to an interim dividend of Rs1.0 per share (10%) already paid, bringing the total payout for CY25 to 25%.

The bank’s CY25 payout of 25% and PAT of Rs15.53bn marked the highest-ever dividend and highest-ever earnings in BOP’s history

Mark-up/return/interest earned declined 22.5% YoY to Rs266.39bn from Rs343.86bn, showing lower interest rates and subdued asset yields during the year.

However, mark-up/return/interest expensed fell at a steeper rate of 38.2% YoY to Rs185.25bn from Rs299.60bn, indicated significantly reduced funding costs.

As a result, net mark-up/interest income surged 83.3% YoY to Rs81.14bn compared to Rs44.46bn in CY24, highlighting strong spread expansion.

Total non-mark-up/interest income declined 25.4% YoY to Rs20.00bn from Rs26.81bn. Fee and commission income rose 19.2% to Rs13.67bn, while dividend income slipped 5.3% to Rs336m.

Foreign exchange income jumped 165.2% to Rs2.28bn, whereas gain on securities (net) dropped sharply 65.8% to Rs4.03 billion.

The bank booked a net loss of Rs1.07bn on derecognition of financial assets, compared to a gain of Rs1.15bn last year.

Other income declined 37.5% to Rs755m, while share of profit from associate stood at Rs225m.

Despite weaker non-mark-up income, total income increased 42.3% YoY to Rs101.13bn from Rs71.07bn, primarily driven by strong net interest income growth.

On the cost side, total non-mark-up/interest expenses rose 19.8% YoY to Rs60.76bn from Rs50.71bn. Operating expenses increased 19.0% to Rs59.73bn amid business expansion and inflationary pressures.

Workers’ Welfare Fund (WWF) surged 96.2% to Rs964m, while other charges escalated significantly to Rs67.6m from Rs6.6m.

Profit before credit loss allowance nearly doubled, rising 98.3% YoY to Rs40.37bn from Rs20.36bn.

The bank recorded a credit loss charge of Rs4.98 billion, compared to a reversal of Rs4.07bn in CY24, showing higher provisioning requirements.

Consequently, profit before taxation climbed 44.8% YoY to Rs35.39bn from Rs24.44bn.

Taxation increased 78.0% YoY to Rs19.86bn from Rs11.16bn, leading to the reported PAT of Rs15.53bn.

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