Bank Of Punjab Announces 21.5% YoY Decline In 1Q Profit

Bank Of Punjab Announces 21.5% YoY Decline In 1Q Profit

LAHORE: Bank of Punjab (BOP) has unveiled its financial results for the 1st quarter ended March 31, 2020, wherein the net profits of the bank have declined by 21.5% YoY to clock in at Rs 1.49 billion against net profits of Rs 1.89 billion of the corresponding period of last year.

This has translated into earnings per share- basic and diluted which clocked in at Rs 0.56 against Rs 0.72 in the aforementioned period.

The profitability of the bank went down primarily due to negative growth in net interest income (NII), down by 7.50%.

The bank’s interest income rose 50 %YoY at Rs 24.22 billion in 1QCY20. However, a significant increase in interest expense by 88% YoY led to a decline in the bank’s net interest income (NII) during 1QCY20.

During the period under review, Non-funded income (NFI) of the bank jumped up by 2.45 times YoY mainly on account of higher fee and commission income ( up by 11% YoY), dividend income (up by 48% YoY) and capital gains (up by 72 times YoY). However, the non-interest expenses of the bank surged by 31% YoY, limiting the favorable impact of higher NFI on the bank’s net earnings.

Meanwhile, the bank paid taxes worth Rs 1.167 billion, down by 25.39% YoY.



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