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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