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Bank of Punjab discloses net profits of Rs 5.7 billion, down by 6.5% YoY

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October 28, 2020 (MLN): Bank of Punjab (BOP) has disclosed a mere 6.5% YoY decline in nine months’ profits to Rs 5.7 billion compared to Rs 6 billion reaped in the same period last year.

This reflected in bank’s earnings per share which dropped by a same percent from Rs 2.33 to Rs 2.18.

The decline in profitability was attributed to lower Net Interest Income (NII) which dropped by 14% YoY to Rs 17 billion due to higher interest expense in low interest rate environment. However, 76.4x increase in capital gains to Rs 8.3 billion limited the downside.

The decline in earnings would have been significant without a notable increase in capital as its operating expenses surged by 15.7% YoY and other charges jumped by 186.5% YoY.

The total non-interest income of the bank posted a surge of 310% YoY during 9MCY20 primarily owing to hefty capital gains along with 7% and 22% YoY increase in Fee and commission income and dividend income respectively.

Moreover, the bank also booked hefty provisioning of Rs 5.8 billion, up by 302% YoY from Rs 1.45 billion in the same period last year.

As a result of 26.4% YoY higher total income, the bank’s cost to income ratio improved to 45% compared to 47% in 9MCY19.

Lastly, the bank’s effective tax rate stood at 42% compared to 41% in the same period of CY19.

 

Profit and Loss Account for the Nine months ended September 30th, 2020 (Rupees in '000)

 

Sep-20

Sep-19

5% Change

Mark-up/return/interest earned

    66,475,776

            57,187,813

16.24%

Mark-up/return/interest expensed

    49,358,427

            37,302,709

32.32%

Net mark-up/return/interest income

    17,117,349

            19,885,104

-13.92%

NON-MARK-UP/INTEREST INCOME

 

 

 

Fee and commission income

       2,809,920

               2,622,496

7.15%

Dividend income

             92,007

                     75,221

22.32%

Foreign exchange (loss) income

          237,370

                  (32,377)

Income/(loss) from derivatives

                      –  

                              –  

 

Gain / (loss) on securities – net

       8,300,254

                  108,523

7548.38%

Other income-net

          145,319

                     47,580

205.42%

Total non-mark-up/interest income

    11,584,870

               2,821,443

310.60%

Total Income

    28,702,219

            22,706,547

26.41%

NON-MARK-UP/INTEREST EXPENSES

 

 

 

Operating expenses

    12,314,041

            10,636,686

15.77%

Workers welfare fund

          268,981

                              –  

 

Other charges

          303,949

                  106,067

186.56%

Total non-mark-up/interest expenses

    12,886,971

            10,742,753

19.96%

Profit before provisions

    15,815,248

            11,963,794

32.19%

Provisions and write offs – net

       5,862,016

               1,455,918

302.63%

Extra ordinary/unusual items

                      –  

                              –  

Profit before taxation

       9,953,232

            10,507,876

-5.28%

Taxation

       4,183,947

               4,335,128

-3.49%

Profit after taxation

       5,769,285

               6,172,748

-6.54%

Earnings per share – Basic and Diluted (in Rupees)

                 2.18

                         2.33

-6.44%

 

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Posted on: 2020-10-28T17:44:00+05:00

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