Lahore March 18 2022: As of December 31, 2021, the Deposits of the Bank of Punjab (BoP) crossed PKR 1.0 Trillion mark and stood at PKR 1,003.0 billion as against PKR 835.1 billion as of December 31, 2020 showing a growth of 20 percent. During the year, Bank remained focused on procuring low cost CASA deposits with special emphases on private sector deposits.
Bank of Punjab is the 10th Pakistani bank to have more than PKR one trillion in deposits. Habib Bank Limited is leading with deposits of PKR 3.4 trillion followed by National Bank of Pakistan and United Bank of Pakistan with deposits of PKR 3.0 trillion and PKR 1.9 trillion, respectively.
As on December 31, 2021, the Gross Advances portfolio stood at of PKR 534.2 billion as against PKR 442.8 billion as on December 31, 2020 registering a growth of 21 percent. During the year, significant reduction in NPLs was observed on account of recovery/regularization and the NPLs portfolio reduced to PKR 52.0 billion as against PKR 57.3 billion as on December 31, 2020. The Bank stands fully compliant with the provisioning requirement under Prudential Regulations of SBP, while all possible legal measures are being taken to ensure recovery of legacy non-performing portfolio. The Investments & Lending to FIs stood at PKR 562.7 billion mainly comprising of Government Securities (95 percent). The Total Assets of the Bank reached the level of PKR 1,197.0 billion as against PKR 1,095.4 Billion as of December 31, 2020 thereby registering a growth of 9 percent.
During the year 2021, Net Interest Margin (NIM) improved to PKR 29.88 billion as against PKR 23.33 billion during year 2020, registering a rise of 28 percent. Similarly, Non-Markup/ Interest Income (excluding gains on securities) increased to PKR 6.12 billion as against PKR 4.58 billion during year 2020 showing a growth of 34 percent.
Non markup/interest Expenses stood at PKR 21.01 billion as against PKR 17.52 billion during year 2020. The rise in expenses was well within the inflationary parameters and growth in Branch Network/Business Volumes.
During year 2021, pre-provision profit stood at PKR 16.77 billion as against PKR 18.85 billion during last year mainly on account of higher level of Gain on Securities during year 2020. However, in view of risks of shocks in the COVID-19 aftermath, in addition to subjective assessment, the Bank also opted to maintain general provision of PKR 2.50 billion against loans and advances on prudent basis.
During the year 2021, net provision reversal of PKR (1.64) billion was recorded as against net provision charge of PKR 6.86 billion during year 2020. Accordingly, the Profit Before Tax was recorded at PKR 18.41 billion as against PKR 11.99 billion during year 2020 with a significant rise of 54 percent. Similarly, the Bank posted After Tax Profit of PKR 12.44 Billion as against PKR 6.94 Billion during year 2020 with a hefty rise of 79 percent. Earnings per Share (EPS) for year 2021 also improved to PKR 4.71 per share as against PKR 2.63 per share for year 2020.
Keeping in view robust Business Plan envisaging aggressive business growth and CAPEX commitment in the areas of Information Technology & Digitalization, requiring strong capital base, the Board announced and recommended a Stock Dividend of 12.50 percent for Shareholders for the year 2021 as against 10.0 percent Cash Dividend announced for the year 2020.
As on December 31, 2021, paid-up capital (net of losses) amounted to PKR 28.39 Billion and the Bank stands compliant with SBP’s minimum capital requirement of PKR 10.0 billion. Further, the Bank’s Capital Adequacy Ratio (CAR) stood at 12.27 percent against the regulatory requirement of 11.50 percent. Had the advance subscription money against future issuance of noncumulative perpetual TFCs been accounted for as eligible capital, the CAR would have been 12.50 percent.
