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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