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

By MG News | May 20, 2020 at 11:26 AM GMT+05:00

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May 20, 2020 (MLN): Bank of Punjab (BOP) has unveiled its financial results for the 1^st 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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