April 22, 2022 (MLN): The profitability of Bank of Punjab (BOP) has increased to Rs2.16 billion for 1QCY22, up by 17.84% compared to Rs1.8bn profit reaped in the same period last year, bank’s filing on PSX showed today.
The significant increase in profitability was attributed to reversals of provisions and higher net mark-up income.
During 1QCY22, BOP’s interest income moved up by 38% to stand at Rs26.81bn, while interest expense surged by 49% YoY to clock in at Rs18.67bn. Consequently, Net Interest Income (NII) was at Rs8.14bn as compared to Rs6.8bn in 1QCY22; up by 18.18% YoY.
The total non-interest income of the bank posted a decline of 33.24% YoY primarily due to a loss incurred on securities. Meanwhile, dividend income and other income during the period managed to post around 3x YoY and 5x YoY increase.
The bank’s non-interest expenses surged by 34.58% YoY led by higher operating costs associated with year-end spending as seen historically.
The bank also booked a reversal of Rs1bn in provisioning expenses during the review period.
|
Profit and Loss Account for the 1st Quarter ended March 2022 (Rupees in '000) |
|||
|---|---|---|---|
|
Mar-22 |
Mar-21 |
% Change |
|
|
Mark-up/return/interest earned |
26,819,842 |
19,428,257 |
38.05% |
|
Mark-up/return/interest expensed |
18,676,928 |
12,538,042 |
48.96% |
|
Net mark-up/return/interest income |
8,142,914 |
6,890,215 |
18.18% |
|
NON MARK-UP/INTEREST INCOME |
|||
|
Fee and commision income |
1,394,320 |
1,124,394 |
24.01% |
|
Dividend income |
164,143 |
55,821 |
194.05% |
|
Foreign exchange (loss) income |
128,844 |
74,717 |
72.44% |
|
Gain / (loss) on securities – net |
(123,680) |
1,262,147 |
-109.80% |
|
Other income-net |
133,264 |
24,887 |
435.48% |
|
Total non mark-up/interest income |
1,696,891 |
2,541,966 |
-33.24% |
|
Total Income |
9,839,805 |
9,432,181 |
4.32% |
|
NON MARK-UP/INTEREST EXPENSES |
|||
|
Operating expenses |
7,349,729 |
5,444,741 |
34.99% |
|
Workers welfare fund |
62,105 |
65,526 |
|
|
Other charges |
4,014 |
150 |
2576.00% |
|
Total non-mark-up/interest expenses |
7,415,848 |
5,510,417 |
34.58% |
|
Profit before provisions |
2,423,957 |
3,921,764 |
-38.19% |
|
(Reversal)/Provisions and write offs – net |
(1,063,925) |
850,569 |
-225.08% |
|
Profit before taxation |
3,487,882 |
3,071,195 |
13.57% |
|
Taxation |
1,324,227 |
1,235,170 |
7.21% |
|
Profit after taxation |
2,163,655 |
1,836,025 |
17.84% |
|
Earnings per share – Basic and Diluted (in Rupees) |
0.81 |
0.69 |
17.39% |
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