February 17, 2026 (MLN): The Bank of Punjab (PSX: BOP) posted a profit after tax (PAT) of Rs15.53 billion for the year ended December 31, 2025, marked a 16.9% year-on-year (YoY) increase compared to Rs13.28bn in CY24.
Earnings per share (EPS) rose to Rs4.71 from Rs4.00 last year, up 17.8% YoY.
The board declared a final cash dividend of Rs1.5 per share (15%), in addition to an interim dividend of Rs1.0 per share (10%) already paid, bringing the total payout for CY25 to 25%.
The bank’s CY25 payout of 25% and PAT of Rs15.53bn marked the highest-ever dividend and highest-ever earnings in BOP’s history
Mark-up/return/interest earned declined 22.5% YoY to Rs266.39bn from Rs343.86bn, showing lower interest rates and subdued asset yields during the year.
However, mark-up/return/interest expensed fell at a steeper rate of 38.2% YoY to Rs185.25bn from Rs299.60bn, indicated significantly reduced funding costs.
As a result, net mark-up/interest income surged 83.3% YoY to Rs81.14bn compared to Rs44.46bn in CY24, highlighting strong spread expansion.
Total non-mark-up/interest income declined 25.4% YoY to Rs20.00bn from Rs26.81bn. Fee and commission income rose 19.2% to Rs13.67bn, while dividend income slipped 5.3% to Rs336m.
Foreign exchange income jumped 165.2% to Rs2.28bn, whereas gain on securities (net) dropped sharply 65.8% to Rs4.03 billion.
The bank booked a net loss of Rs1.07bn on derecognition of financial assets, compared to a gain of Rs1.15bn last year.
Other income declined 37.5% to Rs755m, while share of profit from associate stood at Rs225m.
Despite weaker non-mark-up income, total income increased 42.3% YoY to Rs101.13bn from Rs71.07bn, primarily driven by strong net interest income growth.
On the cost side, total non-mark-up/interest expenses rose 19.8% YoY to Rs60.76bn from Rs50.71bn. Operating expenses increased 19.0% to Rs59.73bn amid business expansion and inflationary pressures.
Workers’ Welfare Fund (WWF) surged 96.2% to Rs964m, while other charges escalated significantly to Rs67.6m from Rs6.6m.
Profit before credit loss allowance nearly doubled, rising 98.3% YoY to Rs40.37bn from Rs20.36bn.
The bank recorded a credit loss charge of Rs4.98 billion, compared to a reversal of Rs4.07bn in CY24, showing higher provisioning requirements.
Consequently, profit before taxation climbed 44.8% YoY to Rs35.39bn from Rs24.44bn.
Taxation increased 78.0% YoY to Rs19.86bn from Rs11.16bn, leading to the reported PAT of Rs15.53bn.
|
STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED DECEMBER 31, 2025 (Rs.000) |
|||
|
Description |
2025 |
2024 |
Change (%) |
|
Mark-up / return / interest earned |
266,388,664 |
343,864,915 |
-22.53% |
|
Mark-up / return / interest expensed |
185,253,112 |
299,604,752 |
-38.17% |
|
Net mark-up / interest income |
81,135,552 |
44,260,163 |
83.32% |
|
Fee and commission income |
13,665,797 |
11,464,083 |
19.21% |
|
Dividend income |
336,442 |
355,106 |
-5.26% |
|
Foreign exchange income |
2,277,978 |
858,903 |
165.22% |
|
Gain on securities - net |
4,032,572 |
11,780,488 |
-65.77% |
|
Net (loss) / gain on derecognition of financial assets |
(1,072,270) |
1,147,554 |
-193.44% |
|
Other income |
754,872 |
1,207,674 |
-37.49% |
|
Total non-markup / interest income |
19,995,391 |
26,813,808 |
-25.43% |
|
Total income |
101,130,943 |
71,073,971 |
42.29% |
|
Operating expenses |
59,725,569 |
50,212,192 |
18.95% |
|
Workers Welfare Fund |
963,687 |
491,291 |
96.15% |
|
Other charges |
67,594 |
6,615 |
921.83% |
|
Total non-markup / interest expenses |
60,756,850 |
50,710,098 |
19.81% |
|
Profit before credit loss allowance |
40,374,093 |
20,363,873 |
98.26% |
|
Charge / (reversal) of credit loss allowance |
4,979,950 |
(4,073,289) |
-222.26% |
|
Share of profit from associate |
225 |
- |
|
|
Profit before taxation |
35,394,368 |
24,437,162 |
44.84% |
|
Taxation - net |
19,864,334 |
11,157,105 |
78.04% |
|
Profit after taxation |
15,530,034 |
13,280,057 |
16.94% |
|
Basic earnings per share (Rs.) |
4.71 |
4 |
17.75% |