The Bank of Punjab (PSX: BOP) has outlined ambitious plans for growth and expansion, targeting 1,000 branches by 2027 as part of its multi-year turnaround strategy. The bank’s corporate management, in a recent briefing, revealed its focus on enhancing its digital footprint, expanding lending for small and medium enterprises (SMEs) and agriculture, and significantly increasing its geographic reach. This strategic move aims to build on the progress BOP has made in recent years, positioning the bank for continued success in Pakistan’s competitive banking industry.
A key component of BOP’s growth strategy is its push towards digital expansion. The bank, which has already been recognized as the largest digital logistics lender in Pakistan, is entering the next phase of its digital journey. Leveraging its extensive borrower databases, including the Kissan Card system, BOP plans to open new avenues for commercial lending, especially in underserved sectors. This digital-first approach is set to reshape how the bank serves SMEs and agricultural borrowers, sectors that remain crucial to Pakistan’s economic growth.
At the same time, BOP continues to maintain its strong presence in SME and agricultural finance, areas that are central to its overall business model. The bank serves as a key lender to SMEs and agricultural borrowers across Pakistan, supporting the country’s small businesses and farming communities with financial products designed to meet their unique needs. This continued focus on the agriculture sector is expected to drive further growth, especially as Pakistan’s farming industry remains a vital component of its economy.
In terms of physical expansion, BOP is planning to add 100 new branches over the next two years. The bank aims to open 50 branches each in 2026 and 2027, bringing its total network of branches to 1,000 by the end of this period. This ambitious expansion is expected to increase the bank’s accessibility across Pakistan, particularly in underbanked and rural areas, which will be key to growing its customer base and increasing market penetration.
Financially, BOP is on a strong growth trajectory. For the nine months ending September 30, 2025, the bank reported a profit after taxation of Rs 11.60 billion, reflecting a robust 37% year-on-year growth. This performance marks a significant milestone in the bank’s financial recovery and growth. Basic earnings per share also rose by 39%, reaching Rs 3.52 compared to Rs 2.53 during the same period in 2024, demonstrating the bank’s profitability and strong value creation for its shareholders.
Total income increased by 58% to Rs 73.65 billion, up from Rs 46.56 billion in the previous year. The major contributor to this growth was the rise in net interest income, which reflects BOP’s effective cost management and strategic positioning in the banking sector. The bank has also successfully repriced its government time deposits, significantly easing its funding costs. Approximately Rs 495 billion in time deposits were reset from 18.39% to 9.65%, helping to optimize its financial structure.
Despite challenges such as recent floods, which impacted a small portion of its agricultural borrowers, BOP’s risk management remains strong. The bank’s non-performing loan (NPL) ratio stands at a manageable 6.5%, better than the market average of over 7.5%, demonstrating its effective credit risk management. The bank has limited exposure to flood-affected areas, with loans fully collateralized and mostly covered by first-loss guarantees.
BOP’s management also indicated optimism regarding its dividend policy, with a strong focus on annual dividends, although no formal commitment to quarterly dividends was made. The bank’s resilient core banking operations and efficient cost management were highlighted as key drivers of its impressive financial performance.
The recent briefing was attended by industry leaders, analysts, and brokers, including prominent figures such as Aqeel Karim Dhedhi, Arif Habib, and Muneer Kamal. Their presence underscored the growing importance of BOP as a key player in Pakistan’s banking landscape.
Looking ahead, BOP is well-positioned to continue its growth trajectory through digital innovation, strategic geographic expansion, and a deep commitment to its core markets in SME and agriculture. With its sights set on a future of enhanced accessibility, profitability, and sustainability, the Bank of Punjab is poised to play a pivotal role in the evolving banking ecosystem of Pakistan.
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