Annual profits

Annual BOP profits up 79% YoY to Rs 12.4 billion

Feb. 18, 2022 (MLN): Bank of Punjab (BOP) announced a significant 79% year-on-year increase in net profit to 12.4 billion rupees for CY21 from 6.9 billion rupees harvested last year.

This took the bank’s earnings per share to Rs 4.71 from Rs 2.63 in CY20.

The significant increase in profitability was attributed to provision reversals and higher net margins.

During CY21, balance of payments interest income decreased by 5%, while interest expense decreased by 17% year-on-year, countered the less interest earned. Consequently, net interest income (NII) was recorded at Rs29.8 billion compared to Rs23 billion in CY20; up 28% year-on-year.

The bank’s total non-interest income fell 39.4% year-on-year, mainly due to a massive 79% and 84% year-on-year drop in capital gains and other income , respectively. Meanwhile, Fee income duringthe year managed to post a 37% year-over-year increase due to pick up in economic activities.

The bank’s non-interest expenses jumped 20% year-on-year, led by a rise operating costs associated with the year-final expenditure as seen historically.

The bank also recorded a reversal of Rs1.64bn in provisioning charge during CY21 against a charge of Rs6.8bn, which supported the bank’s income.

The cthe bank’s cost/income ratio is 55% during CY21, compared to 48% last year.

In addition, in order to preserve capital, the bank has not announced any cash dividend for CY21.

Profit and Loss Account for the Year Ended 31 December 2021 (Rupees in ‘000)

December 21

December 20

% Change

Markup/return/interest earned

81 651 255

86 019 127

-5.08%

Markup/return/interest spent

51,775,404

62,693,706

-17.42%

Net margin/yield/interest income

29,875,851

23,325,421

28.08%

UNMARKED/INTEREST INCOME

Fee and commission income

5,103,495

3,732,141

36.74%

Dividend income

376,643

136,987

174.95%

Exchange income (loss)

576 914

328 303

Income/(loss) on derivatives

Gain / (loss) on securities – net

1,785,790

8,466,492

-78.91%

Other income-net

60,973

381,664

-84.02%

Total non-grossed/interest income

7,903,815

13,045,587

-39.41%

Total revenue

37,779,666

36,371,008

3.87%

UNMARKED/INTEREST EXPENSES

Operating Expenses

20,636,973

16,880,128

22.26%

Workers’ Provident Fund

363 315

334,882

Other expenses

13,408

304 279

-95.59%

Total expenses excluding mark-up/interest

21,013,696

17,519,289

19.95%

Profit before provisions

16,765,970

18,851,719

-11.06%

(Reversal) / Provisions and amortization – net

(1,642,043)

6,862,308

Extraordinary/unusual items

Profit before tax

18,408,013

11,989,411

53.54%

Taxation

5,967,878

5,045,672

18.28%

Profit after tax

12,440,135

6,943,739

79.16%

Earnings per share – basic and diluted (in rupees)

4.71

2.63

79.09%

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Published on: 2022-02-19T00:08:56+05:00

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