Bank of Punjab posts 37% profit surge in 9MCY25

October 30, 2025 (MLN): The Bank of Punjab (PSX: 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.

Net mark-up/interest income rose significantly by 90% year-on-year to Rs58.48bn from Rs30.74bn, driven by a 24% decline in mark-up/interest expensed to Rs143.65bn from Rs234.80bn, while mark-up/interest earned decreased 24% to Rs202.13bn from Rs265.54bn.

The substantial reduction in interest expenses more than offset the decline in interest income, resulting in robust net interest income growth.

Fee and commission income increased 31% to Rs9.98bn from Rs7.63bn in 9MCY24, indicating improved transaction volumes and customer activity. Dividend income declined 16% to Rs220.7m from Rs262.6m in the prior period.

Foreign exchange income decreased 146% to a loss of Rs1.63bn compared to income of Rs661.6m last year, showing adverse currency movements. Gain on securities (net) declined 27% to Rs3.61bn from Rs4.92bn in 9MCY24.

The bank recorded a net loss on derecognition of financial assets measured at amortized cost of Rs783.3m, compared to a gain of Rs1.26bn in the previous year, reflecting changes in the investment portfolio strategy. Other income decreased 53% to Rs510.9m from Rs1.08bn last year.

Total non-markup/interest income stood at Rs15.17bn, down 4% from Rs15.82bn in 9MCY24.

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

Operating expenses rose 27% to Rs44.54bn from Rs35.08bn in 9MCY24, reflecting increased business activity and inflationary pressures.

Workers' Welfare Fund increased significantly by 109% to Rs783.6m from Rs375.6m. Other charges surged 1,028% to Rs68.2m from Rs6.0m last year.

Total non-markup/interest expenses increased 28% to Rs45.39bn from Rs35.46bn in the previous year.

Profit before credit loss allowance stood at Rs28.26bn, up substantially by 155% from Rs11.10bn in 9MCY24.

The bank recorded a charge/reversal of credit loss allowance and write-offs (net) of Rs2.20bn compared to a reversal of Rs3.57bn in the prior period, indicating a more cautious provisioning approach amid the evolving credit environment.

Profit before taxation rose 78% to Rs26.06bn from Rs14.66bn in 9MCY24.

Taxation (net) increased 133% to Rs14.46bn from Rs6.19bn in the prior period, reflecting higher taxable income and effective tax rates.

The bank concluded 9MCY25 with a profit after taxation of Rs11.60bn, up 37% from Rs8.47bn last year.

Equity holders of the parent earned Rs11.51bn, up 39% from Rs8.27bn in 9MCY24, while non-controlling interest stood at Rs88.9m, down 54% from Rs193.6m in the previous year.

The robust profit growth was primarily driven by a 90% surge in net interest income, supported by a significant 38% reduction in interest expenses, despite challenges in non-markup income streams.

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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