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