BOP posts 353% jump in operating profit in Q1

KARACHI: The Bank of Punjab (BOP) reported a 353 per cent year-on-year (YoY) surge in operating profit before provisions for the first quarter of 2025, reflecting strong growth in core banking income and operational efficiency despite a tough economic environment.

Profit before provisions rose to Rs5.09 billion, up from Rs1.72 billion in the same period last year, while net interest margin jumped 76 per cent to Rs15.04 billion, driven by improved spreads and deposit growth. Non-markup income also expanded by 23 per cent to Rs4.85 billion, with fee-based revenue (excluding capital gains) increasing 35 per cent, the bank said in a statement on Tuesday.

Profit before tax grew 14 per cent to Rs4.01 billion. Despite a higher tax rate of 53 per cent, earnings per share rose to Rs0.55, compared with Rs0.52 a year earlier.

BOP’s balance sheet showed continued momentum, with total assets up 12 per cent to Rs2.33 trillion. Deposits climbed 21 per cent to Rs1.72 trillion, including a 22 per cent rise in current deposits. Gross advances stood at Rs819 billion, and investments totalled Rs1.27 trillion.

The bank’s Tier-1 equity reached Rs81 billion, up from Rs70 billion, while the capital adequacy ratio stood at 16.93 per cent -- well above the regulatory requirement of 11.5 per cent.

BOP also highlighted its role in managing key Government of Punjab initiatives, including the CM Punjab Asaan Karobar Card and Finance scheme, Kissan and Livestock Cards, and the ‘Nighaban Ramzan Programme’ -- a province-wide subsidy disbursement executed via the bank’s branchless banking platform.

The bank was the only commercial lender to win two honours at the State Bank of Pakistan’s Financial Literacy Week Awards 2025, recognising its efforts in agriculture and SME finance.