Bank of Punjab reports 18% increase in profit after tax

February 17, 2025 (MLN): The Bank of Punjab (PSX: BOP) posted its highest-ever annual profit of Rs13.28 billion for the year ended December 31, 2024, marking an 18% increase in profit after tax compared to Rs11.25bn in 2023.

In addition to this record profit, the bank has declared a final cash dividend of Rs1.8 per share, representing 18%, marking a strong return for its shareholders.

The bank's net markup/interest income rose by 7.97% year-over-year to Rs44.26bn, driven by a 5.08% increase in mark-up/interest earned, which stood at Rs343.86bn.

Meanwhile, mark-up/interest expenses increased by 4.67% to Rs299.60bn.

Non-markup/interest income surged by 51.04% to Rs26.81bn, supported by a significant 124.19% increase in gains on securities, reaching Rs11.78bn, and a 188.70% rise in foreign exchange income to Rs858.90mn.

However, dividend income dropped by 37.57%, and other income declined by 71.05%.

On the expense side, non-markup/interest expenses increased by 34.57% to Rs50.71bn, primarily due to a 34.60% rise in operating expenses and a 51.83% increase in the Workers Welfare Fund.

Despite this, the bank benefited from a reversal of credit loss allowances and write-offs amounting to Rs4.07bn, a sharp increase from Rs67.23mn in 2023.

Profit before taxation stood at Rs24.43bn, reflecting a 15.65% increase from the previous year.

After accounting for taxation of Rs11.15bn (up 12.98% YoY), the net profit attributable to equity holders of the bank reached Rs13.08bn, marking an 18.11% rise.

Basic and diluted earnings per share improved to Rs4.00 from Rs3.39 in 2023, an increase of 17.99%.

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