Bank of Punjab maintains upward profit trend

April 22, 2025 (MLN): The Bank of Punjab (PSX: BOP) revealed its results for the quarter ended March 31, 2025, wherein the bank’s profit after tax rose 5.83% to Rs1.79 billion [EPS: Rs0.53], compared to the Rs1.69bn [EPS: Rs0.5] profit recorded in the same quarter last year.

According to the income statement provided by the bank, net markup income saw a significant increase of 75.34% year-on-year (YoY), rising to Rs15.05bn from Rs8.58bn in 2024.

This growth was driven by a substantial reduction in interest expenses, which dropped by 28.76%, from Rs75.69bn in the same period last year to Rs53.92bn.

Despite a decrease in total mark-up interest earned, BOP was able to report higher profitability due to a notable 23.07% increase in non-markup interest income, which reached Rs4.51bn, compared to Rs3.66bn in 2024.

This was primarily driven by a sharp rise in foreign exchange income, which surged by 178.10%, and an increase in gain on securities, which rose by 9.79%.

The bank also recorded a net loss of Rs276.7 million on the derecognition of financial assets measured at amortized cost, compared to no such loss in the same quarter last year.

Meanwhile, other income experienced a significant decline, falling by 86.48%.

The profit and loss statement also showed that total non-mark-up interest expenses amounted to Rs14.54bn, up by 38.16% from Rs10.52bn in 2024.

Additionally, the bank reported a net credit loss allowance of Rs997.9m, a sharp reversal compared to the net write-back of Rs1.78bn in the prior period.

BOP tax expense for the quarter stood at Rs2.23bn, up 23.54% from Rs1.8bn in 2024.

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