BOP earns profit of Rs.18.4b in 2021 before tax

Observer Report

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 2021showing a growth of54% over last year. During the year 2021, Bank’s Balance Sheet grew by 9% 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% for Shareholders for the year 2021 as against 10.0% 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%. 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%. 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%. Earnings per Share (EPS) for year 2021also 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% and reached the level of Rs. 1,003.0billion as against Rs. 835.1billion 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+”.

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