The Bank of Punjab (PSX: BOP) reported a 22.9% year-on-year increase in consolidated profit after taxation to Rs14.26 billion for the nine months ended September 30, 2026, compared with Rs11.60 billion in the corresponding period last year. The bank’s financial results released on October 26 showed an improvement in earnings despite a decline in gross interest income and higher operating expenses. Basic and diluted earnings per share increased to Rs4.37 from Rs3.52, representing growth of 24.1% over the same period in 2025. The increase in net profit was supported by lower interest expenses, stronger fee and commission income, and a substantial rise in foreign exchange earnings, which helped offset weaker returns from securities and higher operating costs.
For the nine-month period, the bank’s gross mark-up, return and interest earned declined by 3.0% to Rs195.97 billion from Rs202.13 billion in the corresponding period last year. However, mark-up and interest expenses fell by 11.9% to Rs126.50 billion from Rs143.65 billion. The reduction in interest expenses more than offset the decline in gross interest earnings, allowing net mark-up and interest income to rise by 18.8% to Rs69.48 billion from Rs58.48 billion. This improvement in net interest income was a key contributor to the bank’s overall financial performance. The results indicate that lower funding costs helped the bank retain a larger portion of its interest-related earnings despite a reduction in the gross income generated from advances and other interest-bearing assets.
Non-interest income also recorded growth during the reporting period, supported by higher fee revenue and foreign exchange earnings. Fee and commission income increased by 40.3% to Rs14.00 billion from Rs9.98 billion in the same period last year. Foreign exchange income recorded a sharper increase of 117.9%, reaching Rs3.55 billion compared with Rs1.63 billion previously. These gains strengthened the bank’s income from services and foreign exchange activities. However, dividend income declined by 16.7% to Rs183.94 million from Rs220.69 million. The bank also reported a net loss on securities of Rs531.13 million, compared with a gain of Rs3.61 billion in the corresponding period of 2025. Net losses on the derecognition of financial assets measured at amortised cost increased by 40.9% to Rs1.10 billion from Rs783.32 million. Other income decreased by 13.1% to Rs444.08 million from Rs510.87 million.
Despite these negative movements in certain income categories, total non-mark-up income increased by 9.1% to Rs16.55 billion from Rs15.17 billion. Combined with the improvement in net interest income, this lifted the bank’s total income by 16.8% to Rs86.02 billion during the nine months ended September 2026, compared with Rs73.65 billion a year earlier. The increase in total income provided support for profitability, although the bank continued to face higher operating expenses. Operating expenses rose by 18.6% to Rs52.80 billion from Rs44.54 billion, reflecting increased costs associated with the bank’s operations. The Workers’ Welfare Fund expense declined by 10.8% to Rs698.67 million from Rs783.61 million, while other charges decreased by 88.4% to Rs7.95 million from Rs68.22 million. Nevertheless, total non-mark-up expenses increased by 17.9% to Rs53.51 billion from Rs45.39 billion.
Profit before credit loss allowances increased by 15.1% to Rs32.51 billion, compared with Rs28.26 billion in the corresponding period last year. The bank recorded a net charge for credit loss allowances and write-offs of Rs2.32 billion, up 5.4% from Rs2.20 billion a year earlier. It also reported a loss of Rs518,000 from its share in an associated company, whereas no corresponding amount was recorded in the previous year’s period. After accounting for these items, profit before taxation reached Rs30.20 billion, representing an increase of 15.9% from Rs26.06 billion in the nine months ended September 30, 2025. The increase in pre-tax earnings reflected the improvement in total income, although higher operating expenses and credit loss charges absorbed part of the gains.
Taxation remained a significant expense for the bank during the reporting period. The net tax charge increased by 10.3% to Rs15.94 billion from Rs14.46 billion in the corresponding period last year. Despite the higher tax expense, the increase in profit before taxation enabled the Bank of Punjab to deliver stronger earnings after tax. Net profit rose to Rs14.26 billion from Rs11.60 billion, while both basic and diluted earnings per share reached Rs4.37 against Rs3.52 in the previous year. The difference between the growth in pre-tax profit and net profit reflects the impact of the higher tax charge on the final earnings figure.
For the third quarter ended September 30, 2026, the bank reported net profit of Rs4.89 billion, compared with Rs5.08 billion in the same quarter of 2025. Quarterly earnings per share stood at Rs1.51, down from Rs1.54 a year earlier. This indicates that, although the bank delivered higher cumulative profitability during the first nine months of 2026, its third-quarter net profit was slightly lower than the corresponding quarter last year. Overall, the nine-month results show that improved net interest income, higher commission revenue and stronger foreign exchange earnings supported the Bank of Punjab’s annual profit growth, while rising operating expenses, securities losses and a higher tax charge remained important factors in its financial performance.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.