BOP maintains growth trajectory

MG News | March 02, 2020 at 11:31 AM GMT+05:00

0:00

March 2, 2020 (MLN): The Bank of Punjab (BOP) has reported 8.6% increase in its net profits after tax to Rs 8.27 billion for CY19. Last year (2018), the bank reported profits worth Rs 7.62 billion.

This has translated into the bank’s earnings per share which exhibited a growth from Rs 2.85 per share to Rs 3.09 per share.

During the year, BOP’s Net Interest Income (NIM) significantly improved to Rs. 26.8 billion as against Rs.20 billion in last year, thereby registering a rise of 33.37% YoY. The growth in NIM was attributable to the increase in bank’s deposits and higher interest rates.

Non-Mark-up/Interest Income also rose slightly by 7.4% YoY mainly due to the rise in fee and commission income by 8.84% YoY and gain on securities which exhibited a remarkable growth of 697.9% YoY. Whereas, Non-Markup expenses jumped by 17.5%YoY on account of escalation in operating expenses by Rs 1.87 billion.

Accordingly, the bank was able to post pre-tax profits of Rs 14 billion as against Rs 1.27 billion, thereby marking a rise of 14.67% YoY. Furthermore, the bank has successfully managed to reduce its operating expenses to income ratio from 53% in CY18 to 43% in CY19.

The bank also reported provisions of Rs 1.72 billion against the reversal of Rs 1.22 billion which provided an additional boost to BOP’s profitability.

Profit and Loss Account for the year ended December 2019 (Rupees in '000)
	Dec-19	Dec-18	% Change
Mark-up/return/interest earned	80,961,051	46,972,906	72.36%
Mark-up/return/interest expensed	54,113,537	26,842,449	101.60%
Net mark-up/return/interest income	26,847,514	20,130,457	33.37%
NON-MARK-UP/INTEREST INCOME
Fee and commission income	3,554,915	3,266,117	8.84%
Dividend income	103,925	82,083	26.61%
Foreign exchange (loss) income	10,598	216,920	-95.11%
Income/(loss) from derivatives	-	-
Gain / (loss) on securities - net	221,564	27,767	697.94%
Other income-net	72,173	97,092	-25.67%
Total non-mark-up/interest income	3,963,175	3,689,979	7.40%
Total Income	30,810,689	23,820,436	29.35%
NON-MARK-UP/INTEREST EXPENSES
Operating expenses	14,587,962	12,716,976	14.71%
Workers welfare fund	284,961	-
Other charges	138,697	53,565	158.93%
Total non-mark-up/interest expenses	15,011,620	12,770,541	17.55%
Profit before provisions	15,799,069	11,049,895	42.98%
Provisions/(reversals) and write offs - net	1,727,088	(1,222,149)
Extra ordinary/unusual items	-	-
Profit before taxation	14,071,981	12,272,044	14.67%
Taxation	5,794,431	4,650,666	24.59%
Profit after taxation	8,277,550	7,621,378	8.61%
Earnings per share - Basic and Diluted (in Rupees)	3.09	2.85	8.42%

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