BOP achieves 16.9% profit growth in quarterly results

August 29, 2024 (MLN): The Bank of Punjab (PSX: BOP) announced its results for the quarter ended June 30, 2024, wherein the bank’s profit after tax rose 16.85% to Rs2.66 billion [EPS: Rs0.8] compared to the Rs2.27bn [EPS: Rs0.67] profit recorded in the same quarter last year.

Going by the income statement made available by the bank on the PSX, the bank’s net markup income dropped 23.4% YoY, to clock in at Rs7.39bn against Rs9.65bn recorded in Q2 CY23.

Despite the decrease in the bank's interest income, BOP was able to report a higher profit this quarter due to a 108.86% increase in its non-markup interest income, which rose to Rs6.3 billion from Rs3.02 billion in the same period last year.

This was primarily due to a major rise in BOP's gain on securities, clocking in at Rs1.39bn as against a loss of Rs19.84m in Q2 CY23. Additionally, the foreign exchange income was another major supporting factor.

The bank also reported net gains of Rs1.36 billion on the recognition of financial assets measured at amortized cost during the review quarter.

However, both dividend and fee and commission income, components under the non-markup income, experienced a decline during the review quarter.

The profit and loss statement further shows that the total non-mark-up/interest expenses stood at Rs11.8bn, up by 13.41% YoY.

During Q2 CY24, the bank incurred a provision reversal of Rs1.66bn, compared to a provision expense worth Rs472.82m reported in the SPLY.

The bank incurred a tax expense of Rs899m during the quarter, against a tax rebate of Rs484.17m recorded in Q2 CY23.

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