Bank of Punjab (PSX: BOP) delivered a strong financial performance for the nine months ending September 30, 2025, reporting a profit after taxation of Rs11.60 billion, up 37% from Rs8.47 billion in the same period last year. Basic earnings per share rose 39% to Rs3.52, highlighting strong profitability growth for shareholders.
The bank’s net mark-up/interest income surged 90% year-on-year to Rs58.48 billion, driven by a 38% reduction in interest expenses to Rs143.65 billion, despite a 24% decline in mark-up/interest earned to Rs202.13 billion. This substantial reduction in interest expenses more than offset the decline in income, underscoring the bank’s focus on cost-efficient operations.
Fee and commission income rose 31% to Rs9.98 billion from Rs7.63 billion in 9MCY24, reflecting higher transaction volumes and increased customer activity. Dividend income fell 16% to Rs220.7 million, while foreign exchange operations recorded a loss of Rs1.63 billion compared to a gain of Rs661.6 million last year, highlighting the impact of adverse currency movements. Gains on securities declined 27% to Rs3.61 billion, and the bank recorded a net loss of Rs783.3 million on derecognition of financial assets measured at amortized cost. Other income decreased 53% to Rs510.9 million, bringing total non-markup/interest income to Rs15.17 billion, down 4% from the previous year.
Total income rose 58% to Rs73.65 billion, primarily due to the strong growth in net interest income. Operating expenses increased 27% to Rs44.54 billion, reflecting higher business activity and inflationary pressures, while the Workers’ Welfare Fund contribution surged 109% to Rs783.6 million. Other charges increased sharply by 1,028% to Rs68.2 million, pushing total non-markup/interest expenses up 28% to Rs45.39 billion.
Profit before credit loss allowance jumped 155% to Rs28.26 billion from Rs11.10 billion last year. The bank recorded a net charge of Rs2.20 billion for credit loss allowance and write-offs, reflecting a more cautious provisioning approach amid an evolving credit environment. Profit before taxation rose 78% to Rs26.06 billion, with net taxation increasing 133% to Rs14.46 billion.
Equity holders of the parent earned Rs11.51 billion, up 39% from Rs8.27 billion in 9MCY24, while non-controlling interest fell 54% to Rs88.9 million. The robust profit growth was primarily supported by the 90% surge in net interest income and the bank’s effective cost management, demonstrating resilience in a dynamic operating environment.
The Bank of Punjab’s performance highlights strong fundamentals, disciplined lending, and operational efficiency across its diversified portfolio. Analysts suggest that BOP’s ability to maintain profitability amid challenges in non-markup income streams positions the bank for continued growth and reinforces investor confidence in its strategic direction.
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