Bank of Punjab reports 21.5% YoY decline in first-quarter profit

May 20, 2020 (MLN): Bank of Punjab (BOP) has unveiled its financial results for the 1st quarter ended March 31, 2020, wherein the net profits of the bank have declined by 21.5% YoY to clock in at Rs 1.49 billion against net profits of Rs 1.89 billion of the corresponding period of last year.

 This has translated into earnings per share- basic and diluted which clocked in at Rs 0.56 against Rs 0.72 in the aforementioned period.

The profitability of the bank went down primarily due to negative growth in net interest income (NII), down by 7.50%.

The bank’s interest income rose 50 %YoY at Rs 24.22 billion in 1QCY20. However, a significant increase in interest expense by 88% YoY led to a decline in the bank’s net interest income (NII) during 1QCY20.

During the period under review, Non-funded income (NFI) of the bank jumped up by 2.45 times YoY mainly on account of higher fee and commission income ( up by 11% YoY), dividend income (up by 48% YoY) and capital gains (up by 72 times YoY).  However, the non-interest expenses of the bank surged by 31% YoY, limiting the favorable impact of higher NFI on the bank’s net earnings.

Meanwhile, the bank paid taxes worth Rs 1.167 billion, down by 25.39% YoY.

Profit and Loss Account for the 1st Quarter ended March 2020 (Rupees in '000)

 

Mar-20

Mar-19

% Change

Mark-up/return/interest earned

 24,224,521

 16,108,362

50.38%

Mark-up/return/interest expensed

 18,332,444

 9,738,554

88.25%

Net mark-up/return/interest income

 5,892,077

 6,369,808

-7.50%

NON-MARK-UP/INTEREST INCOME

 

 

 

Fee and commission income

 859,444

 774,388

10.98%

Dividend income

 41,780

 28,205

48.13%

Foreign exchange (loss) income

 72,680

 (2,690)

Income/(loss) from derivatives

 –  

 –  

Gain / (loss) on securities – net

 1,004,103

 13,990

7077.29%

Other income-net

 32,175

 6,054

431.47%

Total non-mark-up/interest income

 2,010,182

 819,947

145.16%

Total Income

 7,902,259

 7,189,755

9.91%

NON-MARK-UP/INTEREST EXPENSES

 

 

 

Operating expenses

 4,213,564

 3,479,423

21.10%

Workers welfare fund

 57,973

 –  

Other charges

 287,666

 1,021

28074.93%

Total non-mark-up/interest expenses

 4,559,203

 3,480,444

30.99%

Profit before provisions

 3,343,056

 3,709,311

-9.87%

Provisions and write offs – net

 685,310

 245,993

178.59%

Extra ordinary/unusual items

 –  

 –  

Profit before taxation

 2,657,746

 3,463,318

-23.26%

Taxation

 1,167,188

 1,564,356

-25.39%

Profit after taxation

 1,490,558

 1,898,962

-21.51%

Earnings per share – Basic and Diluted (in Rupees)

 0.56

 0.72

-22.22%

 

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Posted on: 2020-05-20T11:26:00+05:00

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