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.
| Consolidated Profit and Loss Account for the nine months ended September 2023 (Rupees in '000) | |||
|---|---|---|---|
| Sep 23 | Sep 22 | % Change | |
| Mark-up/return/interest earned | 223,983,989 | 94,618,446 | 136.72% |
| Mark-up/return/interest expensed | 195,849,587 | 71,664,463 | 173.29% |
| Net mark-up/return/interest income | 28,134,402 | 22,953,983 | 22.57% |
| NON MARK-UP/INTEREST INCOME | |||
| Fee and commision income | 6,487,736 | 5,061,681 | 28.17% |
| Dividend income | 336,848 | 389,521 | -13.52% |
| Foreign exchange (loss) income | -377,056 | 1589421 | – |
| Income/(loss) from derivatives | – | – | |
| Gain / (loss) on securities – net | 336,268 | -811,797 | -141.42% |
| Other income-net | 2,003,572 | 207,762 | 864.36% |
| Total non mark-up/interest income | 8,787,368 | 6,436,588 | 36.52% |
| Total Income | 36,921,770 | 29,390,571 | 25.62% |
| NON MARK-UP/INTEREST EXPENSES | |||
| Operating expenses | 27,616,408 | 20,569,116 | 34.26% |
| Workers welfare fund | 119,675 | 210,631 | – |
| Other charges | 8,806 | 34,556 | -74.52% |
| Total non mark-up/interest expenses | 27,744,889 | 20,814,303 | 33.30% |
| Profit before provisions | 9,176,881 | 8,576,268 | 7.00% |
| Provisions and write offs – net | 296,217 | -3,854,897 | -107.68% |
| Extraordinary/unusual items | – | – | – |
| Profit before taxation | 8,880,664 | 12,431,165 | -28.56% |
| Taxation | 2,912,850 | 4,849,096 | -39.93% |
| Profit after taxation | 5,967,814 | 7,582,069 | -21.29% |
| Earnings per share – Basic and Diluted (in Rupees) | 1.78 | 2.29 | – |
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Posted on: 2023-10-30T10:59:39+05:00
