BoP’s full-year profit up 8 percent

KARACHI: Bank of Punjab (BoP) on Monday said its net prof it increased 8 percent to Rs8.277 billion for the year ended December 31, 2019 (EPS: Rs3.09) compared to Rs7.621 billion (EPS: Rs2.85) in the same period last year.

The bank in its statement said its net interest income settled at Rs26.8 billion, improving by an impressive 33 percent year-on-year and 3 percent quarter-on-quarter.

Analysts at brokerage Arif Habib Limited in a report said low exposure to Pakistan Investment Bonds (PIBs) during aggressive rate hikes allowed the bank to benefit from higher yields on its assets, whilst simultaneously being protected from higher mark-to-market losses, as witnessed in banks with higher PIB exposure.

The non-funded income (NFI) of the bank saw a 7 percent year-on-year uptick during CY19, led by a healthy jump in fee income (+9 percent year-on-year) and capital gains (Rs222 million in CY19 with Rs113 million being booked in 4Q, against Rs28 million in CY18).