Bank of Punjab: Profits fall off a cliff in 1QCY23

April 28, 2023 (MLN):  The bottom line of the Bank of Punjab (PSX: BOP) has shrunk by 45.36% YoY in 1QCY23 ended March 31, 2023, to stand at Rs1.18 billion [EPS: Rs0.39], compared to Rs2.16bn [EPS: 0.72] in 1QCY22, bank’s filing on PSX revealed today.
Going by the income statement sent to PSX, the bank’s net interest income (NII) decreased by 4.43% YoY to stand at Rs7.78bn.
During the period under review, the bank’s non-funded income (NFI) jumped by 61.7% YoY to Rs2.74bn mainly due to higher FX income of Rs780.38 million up 6.06x YoY on the back of the rupee devaluation. Moreover, fee and commission income increased by 23.82% YoY to Rs1.72bn during 1QCY23
It is pertinent to mention that the bank recorded a 14.23% YoY rise in operating expenses to stand at Rs8.39bn in 1QCY23, compared to Rs7.34bn in the same period last year, this put pressure on the profitability of the bank.
On the tax front, the bank paid 31.51% YoY lesser taxes worth Rs906.94m in 1QCY23.




Consolidated Profit and Loss Account for the quarter ended March 31, 2023 (Rupees in '000)






 


Mar-23


Mar-22


% Change




Mark-up/return/interest earned


   50,689,553


   26,819,842


89.00%




Mark-up/return/interest expensed


   42,907,230


   18,676,928


129.73%




Net mark-up/return/interest income


     7,782,323


     8,142,914


-4.43%




NON-MARK-UP/INTEREST INCOME


 


 


–




Fee and commission income


     1,726,428


     1,394,320


23.82%




Dividend income


         137,189


         164,143


-16.42%




Foreign exchange (loss) income


         780,381


         128,844


505.68%




Income/(loss) from derivatives


                    –  


                    –  


–




Gain / (loss) on securities – net


           59,579


      (123,680)


–




Other income-net


           40,257


         133,264


-69.79%




Total non-mark-up/interest income


     2,743,834


     1,696,891


61.70%




Total Income


   10,526,157


     9,839,805


6.98%




NON-MARK-UP/INTEREST EXPENSES


 


 


 




Operating expenses


     8,395,362


     7,349,729


14.23%




Workers welfare fund


           31,013


           62,105


-50.06%




Other charges


                 597


             4,014


-85.13%




Total non-mark-up/interest expenses


     8,426,972


     7,415,848


13.63%




Profit before provisions


     2,099,185


     2,423,957


-13.40%




(Reversal) / Provisions and write-offs – net


           10,123


   (1,063,925)


–




Extraordinary/unusual items


                    –  


                    –  


–




Profit before taxation


     2,089,062


     3,487,882


-40.11%




Taxation


         906,944


     1,324,227


-31.51%




Profit after taxation


     1,182,118


     2,163,655


-45.36%




Earnings per share – Basic and Diluted (in Rupees)


                0.39


                0.72


–




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Posted on: 2023-04-28T12:50:58+05:00
The post Bank of Punjab: Profits fall off a cliff in 1QCY23 appeared first on Mettis Global Link .