Bank of Punjab profit up 31pc

KARACHI: Bank of Punjab (BOP) profit increased 31 percent to Rs6.172 billion for the nine months period ended September 30, 2019, translating into EPS of Rs2.33, a bourse filing said on Monday.

The bank earned Rs5.507 billion with EPS of Rs2.08 in the corresponding period of last calendar year. It did not announce any interim dividend for the quarter ended September 30, 2019, the PSX notice said.

Net interest income of the bank settled at Rs20 billion, improving 40 percent YoY/3.0 percent QoQ. Low exposure to PIB’s during rate hike allowed the bank to benefit from higher yields on its assets whilst simultaneously being protected from higher MTM losses, as witnessed in banks with higher PIB exposure.

NFI of the bank saw a 1.0 percent YoY decline during 9MCY19 where foreign exchange income turned red this year (loss this quarter worth Rs63 million) while dividend income jumped 40 percent YoY. On a sequential basis the bank’s NFI portrayed a downturn of 6.0 percent.

A net provisioning expense was booked this quarter of Rs435 million (down 44 percent QoQ) compared to nominal expense the same period last year. Total provisioning settled at Rs1.5 billion for 9MCY19.

The bank saw a rise in its operating expenses as per industry trend by 17 percent YoY during 9MCY19 while increasing 6.0 percent QoQ.

Deposits of the bank reached the level of Rs640.5 billion against Rs595.6 billion as on December 31, 2018 and bank’s total assets touched new height of Rs844.1 billion, a statement issued by the BOP said.

Similarly, investments and advances remained at Rs362.5 billion and Rs416.6 billion, respectively. The bank’s tier-I equity improved to Rs38.7 billion as against Rs34.5 billion on December 31, 2018.As on September 30, 2019, the bank’s capital adequacy ratio (CAR) substantially improved to 14.66 percent, the statement added.