The Bank of Punjab (BOP) conducted a corporate briefing session for brokerages, research analysts, and market participants, presenting its half-yearly and annual financial performance. The event was led by President and CEO Zafar Masud, joined by senior executives including Chief Financial Officer Nadeem Amir, Chief Digital Officer Nofel Daud, Company Secretary Kamran Hafeez, Group Head Treasury and Capital Markets Qasim Nadeem, and Group Head Corporate and Investment Banking Umer Khan.
BOP reported record results for the first half of 2025, highlighting the success of its business strategy and operational resilience. Operating profit rose by 278% during the period, while profit before tax reached Rs15.2 billion, the highest in the bank’s history. In line with its revised dividend policy, BOP announced its first-ever interim cash dividend of 10%.
Deposits reflected strong growth momentum, with current deposits expanding by 43% and Islamic deposits climbing by 80%. The bank’s remarkable performance translated into significant market gains, as its share price surged by 294% over the past year, pushing market capitalization to a record Rs63 billion.
During the Q&A session, management addressed questions regarding the sustainability of profitability. They emphasized that the performance was built on structural improvements such as a stronger deposit mix, accelerated digital adoption, and higher fee-based income, rather than one-time gains. This, they assured, makes the results durable and replicable going forward.
Analysts raised concerns about the potential impact of recent floods on the agriculture and SME loan portfolios. Management clarified that agriculture and SME financing constitute around one-third of the loan book, but only 8% of this exposure lies in flood-affected regions. Within this, 76.59% is protected under first-loss guarantees provided by government schemes, while the majority of the remaining portfolio is collateralized and insured. Less than 0.18% of total exposure is unsecured, minimizing risk.
The bank highlighted that recovery performance remains strong, with its flagship Kissan Card portfolio achieving repayment rates of 99% in the first cycle. Residual balances are largely absorbed under guarantee mechanisms, ensuring stability in repayment behavior.
Regarding deposit repricing, management explained that Rs502 billion in term deposits were carried over from the previous year, with 87% maturing by August 2025. This reduced the cost of liabilities and improved spreads. The investment portfolio, they added, consists of 57% floating-rate bonds, 19% fixed Pakistan Investment Bonds, and 24% Treasury bills, reflecting a cautious balance of risk and returns.
On deposit growth, BOP’s current account ratio improved from 17% in 2023 to 24% by mid-2025, surpassing its year-end target of 22%. This was attributed to deliberate measures focused on low-cost deposit mobilization, Islamic banking expansion, and digital-first strategies aimed at enhancing customer experience.
Questions were also raised on the bank’s share price trajectory. While BOP refrained from giving forward guidance, management noted that structural reforms, profitability, and a stronger dividend payout had driven a 294% increase in share price, a trend expected to sustain given robust fundamentals.
Commenting on the performance, CEO Zafar Masud stated that the results reflect years of reforms targeting low-cost deposits, treasury optimization, and growth in current accounts. He stressed the bank’s commitment to cautious but strategic growth, particularly in SME, agriculture, and housing finance, while staying prepared for external challenges including climate-related risks.
Looking ahead, BOP reaffirmed its focus on accelerating digital transformation, deepening financial inclusion, and delivering consistent value to stakeholders.
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