LAHORE – Bank of Punjab (BOP) has delivered a strong financial performance during the first half of 2026, posting substantial year-on-year growth in earnings and declaring its highest-ever interim cash dividend of 16%.
The bank announced its unaudited results for the six months ended June 30, 2026, after approval by its Board of Directors. The results showed continued growth in core banking income, stronger operational profitability and an improved financial position.
Operating profit jumps 67%
BOP’s operating profit surged 67% year-on-year to Rs22.5 billion, marking the bank’s highest-ever operating profitability.
Net interest income increased 29% to Rs46.1 billion, while non-markup income, excluding gains, rose an impressive 61% to Rs11.9 billion.
The bank attributed the growth to proactive asset-liability management, stronger fee-based income and diversification of its revenue streams.
Profit before tax climbed 35% to Rs20.5 billion, while profit after tax increased 40% to Rs9.5 billion.
The bank also reported continued improvement in cost efficiency, with its cost-to-income ratio declining by 2.40 percentage points compared with the first half of 2025.
Deposits and lending also rise
BOP’s total assets reached Rs2.504 trillion during the period, while deposits increased to Rs2.154 trillion.
Current deposits grew 20% year-on-year, with average current deposits registering an even stronger 26% increase.
The bank’s gross advances also recorded significant growth, rising 28% to Rs996 billion, including financing directed towards priority sectors of the economy.
Capital position remains above regulatory requirements
The bank maintained a capital adequacy ratio of 13.69% and a leverage ratio of 3.65%, both above the regulatory requirements set by the State Bank of Pakistan.
BOP said it also remained fully compliant with provisioning requirements under IFRS 9, supporting the strength and resilience of its balance sheet.
PACRA awards BOP highest AAA rating
The bank’s strong performance was accompanied by a major credit-rating milestone.
The Pakistan Credit Rating Agency (PACRA) upgraded BOP’s long-term entity rating to AAA, the highest possible rating, with a Stable Outlook.
The upgrade reflects the bank’s strengthened financial profile, market position, risk-management framework and governance standards.
BOP gets green light for Bahrain expansion
BOP also received in-principle approval from the State Bank of Pakistan to establish an Overseas Wholesale Banking Unit in Bahrain.
The proposed unit is expected to expand BOP’s international banking footprint, create opportunities in cross-border banking and strengthen institutional relationships across the Middle East.
Punjab government may inject Rs30 billion
In another major development, BOP’s Board has proposed the issuance of ordinary shares to the Government of Punjab for up to Rs30 billion.
Subject to shareholder and regulatory approvals, the proposed equity subscription would be completed in two stages:
- Up to Rs20 billion by December 31, 2026
- Remaining amount by June 30, 2027
The proposed capital injection is expected to enhance BOP’s ability to expand its balance sheet and provide greater flexibility for future strategic initiatives.
Three major Pakistan Banking Awards
BOP also emerged as a major winner at the Pakistan Banking Awards 2026, securing three awards:
- Best Bank for Agriculture Inclusion
- Best SME Bank
- Best Bank for Women’s Inclusion
The bank said its Agriculture Inclusion and Women’s Inclusion awards represent a three-year hat-trick, while its SME recognition marks its fourth award in five years.
BOP further highlighted that it is the only bank to win three awards for two consecutive years and the only bank to achieve what it described as a unique vertical and horizontal hat-trick.
Bank eyes further growth in 2026
As a key financial partner of the Government of Punjab, BOP continues to participate in public welfare programmes, priority-sector financing and broader economic development initiatives.
With its improved profitability, stronger deposits and advances, AAA rating, proposed additional equity support and planned expansion into Bahrain, the bank said it is well positioned to maintain its growth momentum during the remainder of 2026.
Management said its focus would remain on sustainable shareholder returns, financial inclusion, digital transformation and expanding access to modern banking services across Pakistan.
The Bank of Punjab delivers yet another record-breaking quarterly performance in Q1 2026
