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BOP maintains growth trajectory

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%

 

Copyright Mettis Link News

Posted on: 2020-03-02T11:31:00+05:00

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