BOP’s quarterly earnings decline 2% year-on-year, while nine-month profit rises 24% to Rs14.3 billion amid growth in interest and non-funded income.

The Bank of Punjab (BOP) reported a profit of Rs4.9 billion, equivalent to earnings per share (EPS) of Rs1.5, for the third quarter of calendar year 2026 (3QCY26), down 2% year-on-year but up 5% quarter-on-quarter.

The bank’s cumulative profit for the first nine months of 2026 reached Rs14.3 billion, representing a 24% increase compared with the corresponding period last year.

Net interest income (NII) rose 3% year-on-year to Rs23 billion during the quarter, supported by a 5% decline in interest expenses against a 3% decrease in interest earned.

Non-funded income increased 16% year-on-year, driven by a 23% rise in fee income to Rs4.4 billion and a 76% increase in foreign exchange income to Rs1.6 billion.

However, operating expenses climbed 15% year-on-year, pushing the cost-to-income ratio to 62%, as total income grew by just 6%. Provisioning expenses also increased 31% to Rs2.2 billion, partially offsetting earnings growth.

The bank’s effective tax rate stood at approximately 53%, compared with 55% in 3QCY25.

On the balance sheet, deposits declined around 11% quarter-on-quarter to Rs1.9 trillion, although they remained 2.3% higher year-on-year. Borrowings surged 264% quarter-on-quarter to approximately Rs220 billion.

Total lending increased 8% year-on-year to Rs1 trillion, with the advance-to-deposit ratio (ADR) at 53%. Investments fell 8% quarter-on-quarter, while the investment-to-deposit ratio (IDR) stood at 57%.

The bank’s stock was trading at a price-to-book ratio of 0.7 and an estimated CY2026 dividend yield of 11.7%, based on the last day’s closing price (LDCP).