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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