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HomeEquityReversals against advances uphold Bank of Punjab’s profit growth

Reversals against advances uphold Bank of Punjab’s profit growth

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%

 

Copyright Mettis Link News

Posted on: 2018-10-26T12:29:00+05:00

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