BOP's annual profits up by 79% YoY to Rs12.4bn

By MG News | February 19, 2022 at 12:08 AM GMT+05:00

0:00

February 18, 2022 (MLN): Bank of Punjab (BOP) has disclosed a significant 79% YoY increase in net profits to Rs12.4 billion for CY21, compared to Rs6.9 billion reaped in last year.

This has caused the earnings per share of the bank to clock in at Rs4.71 as opposed to Rs2.63 in CY20.

The significant increase in profitability was attributed to reversals of provisions and higher net mark-up income.

During CY21, BOP’s interest income decreased by 5%, while interest expense lowered by 17% YoY, which countered the lower interest earned. Consequently, Net Interest Income (NII) was recorded at Rs29.8bn as compared to Rs23bn in CY20; up by 28% YoY.

The total non-interest income of the bank posted a decline of 39.4% YoY primarily due to a massive 79% and 84% YoY decline in capital gains and other income respectively. Meanwhile, Fee income during the year managed to post a 37% YoY increase owing to picking up in economic activities.

The bank’s non-interest expenses surged by 20% YoY led by higher operating costs associated with year-end spending as seen historically.

The bank also booked a reversal of Rs1.64bn in provisioning expense during CY21 against a charge of Rs6.8bn, which supported the bank’s earnings.

The cost to income ratio of the bank stands at 55% during CY21, up from last year’s 48%.

Moreover, in order to conserve capital, the bank did not announce any cash dividend for CY21.

Profit and Loss Account for the year ended December 31, 2021 (Rupees in '000)
	Dec-21	Dec-20	% Change
Mark-up/return/interest earned	81,651,255	86,019,127	-5.08%
Mark-up/return/interest expensed	51,775,404	62,693,706	-17.42%
Net mark-up/return/interest income	29,875,851	23,325,421	28.08%
NON-MARK-UP/INTEREST INCOME
Fee and commission income	5,103,495	3,732,141	36.74%
Dividend income	376,643	136,987	174.95%
Foreign exchange (loss) income	576,914	328,303	-
Income/(loss) from derivatives	-	-
Gain / (loss) on securities - net	1,785,790	8,466,492	-78.91%
Other income-net	60,973	381,664	-84.02%
Total non-mark-up/interest income	7,903,815	13,045,587	-39.41%
Total Income	37,779,666	36,371,008	3.87%
NON-MARK-UP/INTEREST EXPENSES
Operating expenses	20,636,973	16,880,128	22.26%
Worker’s welfare fund	363,315	334,882
Other charges	13,408	304,279	-95.59%
Total non-mark-up/interest expenses	21,013,696	17,519,289	19.95%
Profit before provisions	16,765,970	18,851,719	-11.06%
(Reversal) / Provisions and write offs - net	(1,642,043)	6,862,308
Extra ordinary/unusual items	-	-	-
Profit before taxation	18,408,013	11,989,411	53.54%
Taxation	5,967,878	5,045,672	18.28%
Profit after taxation	12,440,135	6,943,739	79.16%
Earnings per share - Basic and Diluted (in Rupees)	4.71	2.63	79.09%

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