The Bank of Punjab (PSX: BOP) recorded a profit after tax (PAT) of Rs15.53 billion for the year ended December 31, 2025, representing a 16.9% increase compared with Rs13.28 billion in 2024. Earnings per share (EPS) rose 17.8% to Rs4.71 from Rs4.00 last year, reflecting strong profitability amid improved net interest margins and disciplined cost management. The bank’s board approved a final cash dividend of Rs1.5 per share (15%) in addition to the interim dividend of Rs1 per share (10%) already disbursed, bringing total dividends for the year to 25%, the highest payout in the bank’s history.
The CY25 results also marked the highest-ever profit and dividend in BOP’s history, underscoring the bank’s performance momentum. Mark-up, return, and interest earned decreased 22.5% YoY to Rs266.39 billion from Rs343.86 billion in 2024, reflecting lower interest rates and subdued asset yields throughout the year. Interest expenses, however, fell more sharply by 38.2% YoY to Rs185.25 billion from Rs299.60 billion, demonstrating significant reduction in funding costs. Consequently, net mark-up and interest income surged 83.3% YoY to Rs81.14 billion from Rs44.26 billion, highlighting robust spread expansion and efficient interest rate management.
Total non-mark-up/interest income declined 25.4% YoY to Rs20 billion from Rs26.81 billion. Fee and commission income increased 19.2% to Rs13.67 billion, supported by growth in transactional and service-based banking activities. Dividend income fell slightly by 5.3% to Rs336 million, while foreign exchange income soared 165.2% to Rs2.28 billion. Gains on securities, however, dropped sharply by 65.8% to Rs4.03 billion. The bank reported a net loss of Rs1.07 billion on derecognition of financial assets compared with a gain of Rs1.15 billion in 2024. Other income fell 37.5% to Rs755 million, and the share of profit from associates stood at Rs225 million. Despite weaker non-interest income, total income increased 42.3% YoY to Rs101.13 billion from Rs71.07 billion, primarily driven by strong net interest growth.
On the expense front, total non-mark-up/interest expenses rose 19.8% YoY to Rs60.76 billion from Rs50.71 billion. Operating expenses increased 19% to Rs59.73 billion due to business expansion and inflationary pressures. Workers’ Welfare Fund obligations surged 96.2% to Rs964 million, while other charges rose substantially to Rs67.6 million from Rs6.6 million. Profit before credit loss allowances nearly doubled, increasing 98.3% YoY to Rs40.37 billion from Rs20.36 billion. Credit loss provisions amounted to Rs4.98 billion compared to a reversal of Rs4.07 billion in 2024, reflecting higher provisioning requirements.
Profit before taxation rose 44.8% YoY to Rs35.39 billion, while taxation increased 78% YoY to Rs19.86 billion, resulting in a net PAT of Rs15.53 billion. The results illustrate BOP’s ability to leverage lower funding costs, expand spreads, and maintain strong shareholder returns despite pressures on non-interest income. The bank’s performance in 2025 positions it as a leading player in Pakistan’s banking sector, highlighting resilience, effective risk management, and consistent growth strategies.
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