By Press Release

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LAHORE: The Bank of Punjab (BOP) hosted a corporate briefing for brokerages, research analysts, and market participants to share its half-yearly and annual financial performance. The session was led by President & CEO Zafar Masud, joined by Nadeem Amir (Chief Financial Officer), Nofel Daud (Chief Digital Officer), Kamran Hafeez (Company Secretary), Qasim Nadeem (Group Head Treasury & Capital Markets), and Umer Khan (Group Head Corporate & Investment Banking).

BOP reported record results in the first half of 2025, underscoring the strength of its business strategy and operational execution. Operating profit grew by 278 percent during the period, while Profit Before Tax climbed to Rs 15.2 billion, the highest in the Bank’s history.

In line with its new dividend policy, BOP announced its first-ever interim cash dividend of 10 percent. Deposits reflected robust growth momentum, with current deposits increasing by 43 percent and Islamic deposits by 80 percent.

On the back of this exceptional performance, the Bank’s share price appreciated by 294 percent over the past year, taking its market capitalization to a record Rs 63 billion.

The Q&A session with analysts revolved around a number of important themes. On the sustainability of performance, management emphasized that profitability was built upon structural improvements in the deposit mix, accelerated digital adoption, and growing fee income streams, making it durable and not reliant on one-off gains.

Analysts also raised concerns about the potential impact of the recent floods on the Bank’s agriculture and SME portfolios. Management explained that Agriculture and SME financing together account for around 1/3rd of the Bank’s loan book, but only about 8 percent of this exposure lies in flood-affected areas. Of this, nearly 76.59 percent is covered through first-loss guarantees provided under various government schemes, leaving only a small proportion uncovered.

Within the Bank’s own commercial portfolio, the overwhelming majority is collateralized and insured, with only a negligible fraction — less than 0.18 percent of the total exposure — unsecured.

Recovery performance remains strong, with the flagship Kissan Card portfolio achieving repayment rates of around 99 percent in its first cycle, while any residual balances are absorbed under guarantee structures.

Management emphasized that this high level of protection, combined with prudent lending practices and data-driven client selection, ensures that BOP’s SME and agriculture portfolios remain resilient despite climate-related shocks.

Copyright Business Recorder, 2025