BoP earns Rs18.4bn profit before tax in 2021

19 Feb, 2022

LAHORE: A meeting of the Board of Directors of The Bank of Punjab (BOP) was held on Friday. During the meeting, annual audited Financial Statements of the Bank for the year ended December 31, 2021 were approved by the Board.

During the meeting, the Board reviewed Bank’s financial performance and appreciated the efforts of Management for exhibiting tremendous financial results in line with strategic business plan. Owing to prudent management of resources and aggressive business expansion, the Bank has been able to post highest ever before tax profit of Rs.18.4 billion during year 2021 showing a growth of 54 percent over last year.

During the year 2021, Bank’s Balance Sheet grew by 9 percent and remained at the level of Rs 1.2 trillion. First time in its history, as on December 31, 2021, Bank’s deposits also crossed the level of Rs 1.0 trillion mark.

Keeping in view robust business plan envisaging aggressive business growth and CAPEX commitment in the areas of information technology & digitalization, requiring strong capital base, the Board announced and recommended a stock dividend of 12.50 percent for shareholders for the year 2021 as against 10.0 percent cash dividend announced for the year 2020.

During the year 2021, Net Interest Margin (NIM) improved to Rs 29.9 billion as against Rs 23.3 billion showing an increase of 28 percent. Non-Markup/ Interest Income (excluding gains on securities) increased to Rs 6.1 billion as against Rs 4.6 billion showing a substantial increase of 34 percent. During the year, Bank’s NPLs reduced by Rs 5.2 billion on account of recovery/regularization. Further, a general provision of Rs 2.5 billion has also been maintained by the Bank.

The Bank posted after tax profit of Rs 12.4 billion as against Rs 6.9 billion during year 2020 showing a significant increase of 79 percent. Earnings per Share (EPS) for year 2021 also improved to Rs 4.71 per share against Rs 2.63 per share during year 2020.

On Deposits side, the Bank registered a growth of 20 percent and reached the level of Rs 1,003.0 billion as against Rs 835.1 billion as on December 31, 2020. Investments and Gross Advances were recorded at Rs 531.7 billion and Rs 534.2 billion, respectively. Book Value per share (excluding surplus on assets) improved to Rs 21.26 as against Rs 17.52 as on December 31, 2020. As on December 31, 2021, Bank’s Equity improved to Rs 54.8 billion.

In recognition of Bank’s strong financial position, The Pakistan Credit Rating Agency (PACRA) has upgraded Bank’s long term entity rating to “AA+” with short term rating being already at the highest rank of “A1+”. The Bank currently has a countrywide network of 662 online branches, including 114 Taqwa Islamic Banking Branches. Further, Bank also has a vast network of 647 ATMs providing 24/7 banking services to the customers.

Copyright Business Recorder, 2022

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