Reversals against advances uphold Bank of Punjab’s profit growth

MG News | October 26, 2018 at 12:29 PM GMT+05:00

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October 26, 2018 (MLN): As per an official report on its financial earnings for the 3 quarters ended on September 30, 2018, Bank of Punjab (BOP) successfully exceeded its profits over the corresponding period of last year, by over Rs.2.3 billion.

The report shows that sizeable upswing in Net mark-up/return/interest income and reversal of provision against non-performing advances, has prompted the net mark-up/return/interest income after provisions to rise by 67% on the whole.

However, gain on sale and redemption of securities dropped by almost 98% while administrative expenses rose by 20%, both marking a change of over Rs.1 billion each, in the downward direction.

Even so, BOP managed to pull up its bottom-line gains remarkably, up to Rs.5.5 billion.

The company’s basic and diluted earnings per share have logged in at Rs.2.08 per share for the nine-month period this year.

Profit and Loss Account for the nine months ended September 30th 2018 (Rupees in '000)
	Sep-18	Sep-17	% Change
Mark-up/return/interest earned	32,360,522	24,806,143	30.45%
Mark-up/return/interest expensed	18,256,584	13,721,262	33.05%
Net mark-up/return/interest income	14,103,938	11,084,881	27.24%
(Reversal of provision)/Provision against non-performing advances - net	(1,107,853)	1,943,862
Provision/(reversal of provision) for diminution in the value of investments - net	22,228	49,164	-54.79%
Bad debts written off directly	-	-
Net mark-up/return/interest income after provisions	15,189,563	9,091,855	67.07%
NON MARK-UP/INTEREST INCOME
Fee, commission and brokerage income	1,179,281	839,947	40.40%
Dividend income	53,576	59,816	-10.43%
Income/ (loss) from dealing in foreign currencies	193,607	44,246	337.57%
Gain on sale and redemption of securities - net	31,217	1,301,673	-97.60%
Unrealized gain/(loss) on revaluation of investments classified as "held-for-trading" - net	(4,372)	1,470
Other income	1,418,089	1,508,742	-6.01%
Total non-mark-up/interest income	2,871,398	3,755,894	-23.55%
NON MARK-UP/INTEREST EXPENSES
Administrative expenses	9,027,489	7,483,612	20.63%
Provision against other assets	62,154	35,875	73.25%
Other charges	52,238	42,003	24.37%
Total non-mark-up/interest expenses	9,141,881	7,561,490	20.90%
Extra ordinary/unusual items	-	-
Profit before taxation	8,919,080	5,286,259	68.72%
Taxation	3,411,110	2,120,436	60.87%
Profit after taxation	5,507,970	3,165,823	73.98%
Earnings per share - Basic and Diluted (in Rupees)	2.08	2.04	1.96%

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