BOP's profit after tax plunges by 21% to Rs5.97bn in 9MCY23

October 30, 2023 (MLN): The Bank of Punjab (PSX: BOP) announced its results for the nine months of 2023, wherein the bank’s profit after tax went down by 21.29% YoY to Rs5.97 billion [EPS: Rs1.78] compared to Rs7.58bn [EPS: Rs2.29] profit recorded in the same period last year (SPLY).

Going by the income statement made available by the company on the PSX, the bank’s net markup income soared by 22.57% YoY, to clock in at Rs28.13bn against Rs22.95bn incurred in the SPLY.

Similarly, the bank’s total non-markup interest income improved by 36.52% YoY to Rs8.79bn as compared to Rs6.44bn in SPLY.

This was due to an increase in Fee and commission income of 28.17% YoY to Rs6.49bn in 9MCY23.

Moreover, BOP incurred a foreign exchange loss of Rs377.06m, compared to a gain of Rs1.59bn in the SPLY, this further contributed to the decline in the bank’s profitability.

The profit and loss statement further shows that the nine months’ total non-mark-up/interest expenses stood at Rs27.74bn, up by 33.3% YoY.

However, despite the increased flow of income, expenses rose by a greater proportion, resulting in a decline in profit after tax.

During the 9MCY23, the bank incurred a provision reversal of Rs296.22m, compared to a provision expense worth Rs3.85bn reported in the SPLY.

On the taxation front, the bank incurred a tax of Rs2.91bn, 39.93% YoY lower than the tax of Rs4.85bn recorded in SPLY.

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