Mettis Global News
Mettis Global News
Mettis Global News AD
Mettis Global News AD

BOP’s profits dip slightly on capital loss, higher interest expenses

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

August 17, 2022 (MLN): The Bank of Punjab (BOP) reported net profits for 1HCY22 at Rs5.4bn (EPS: Rs1.8), depicting a slight decline of 2.4% YoY, mainly due to loss on securities and higher interest expenses.

The net interest income of the bank settled at Rs15.9bn during 1HCY22, increasing 14% YoY. Non-interest income dropped by 17.2%YoY, primarily due to capital loss worth Rs861 million booked during the period compared to gains of Rs1.6bn in the corresponding period last year.

Excluding capital loss, non-interest income reported an improvement of 62%YoY led by a 35.5%YoY increase in fee and commission income and a 4.9x YoY increase in income from foreign exchange operations.

On the expense side, operating expenses reported a significant increase of 36.5% YoY, from Rs10.2bn to Rs13.97bn. With this, the cost-to-income ratio stands at 72% compared to 57% in 1HCY21.

Moreover, the bank posted a huge reversal during the review period, clocking in at Rs2.94bn compared to the provisioning charge of Rs632mn recorded in the same period last year which provided a cushion to the bank’s profitability.

Lastly, the effective tax rate was set at 35% during 1HCY22 against 24% last year.

Profit and Loss Account for the half year ended June 30, 2022 (Rupees in '000)

 

Jun-22

Jun-21

% Change

Mark-up/return/interest earned

    58,937,443

            38,927,588

51.40%

Mark-up/return/interest expensed

    43,015,246

            24,984,717

72.17%

Net mark-up/return/interest income

    15,922,197

            13,942,871

14.20%

NON-MARK-UP/INTEREST INCOME

 

 

 

Fee and commission income

       3,403,914

               2,512,352

35.49%

Dividend income

          221,549

                  105,001

111.00%

Foreign exchange (loss) income

          685,798

                  140,764

387.20%

Income/(loss) from derivatives

                      –  

 –

 

Gain / (loss) on securities – net

        (861,011)

               1,614,972

Other income-net

          198,440

                     34,202

480.20%

Total non-mark-up/interest income

       3,648,690

               4,407,291

-17.21%

Total Income

    19,570,887

            18,350,162

6.65%

NON-MARK-UP/INTEREST EXPENSES

 

 

 

Operating expenses

    13,970,580

            10,233,070

36.52%

Worker’s welfare fund

          147,071

                  167,415

-12.15%

Other charges

             33,794

                           502

6631.87%

Total non-mark-up/interest expenses

    14,151,445

            10,400,987

36.06%

Profit before provisions

       5,419,442

               7,949,175

-31.82%

(Reversal) / Provisions and write offs – net

    (2,940,463)

                  632,328

 

Extra ordinary/unusual items

                      –  

                              –  

Profit before taxation

       8,359,905

               7,316,847

14.26%

Taxation

       2,949,314

               1,772,948

66.35%

Profit after taxation

       5,410,591

               5,543,899

-2.40%

Earnings per share – Basic and Diluted (in Rupees)

                 1.80

                         1.85

-2.70%

Copyright Mettis Link News

Posted on:2022-08-17T17:58:03+05:00

34644

PKR 262.6 per USD

PKR reached historic low in Interbank