BOP reports before tax profit of Rs10bn for 9M2020

A meeting of the Board of Directors of The Bank of Punjab was held on Thursday to consider and approve the unaudited financial statements for the nine months period ended September 30, 2020. The board reviewed the bank’s financial performance and expressed its satisfaction on prudent management of resources through which negative impact of Covid19 related economic slowdown has been managed to a great extent. The board appreciated the efforts of management team and staff members for ensuring provision of seamless banking services to bank’s valued customers in a very challenging operating environment. During nine months period ended September 30, 2020, the bank was able to minimize the impact of adverse economic conditions by opting investment strategy which resulted in substantial capital gains on books of the bank as nonmarkup/ interest income increased to Rs11.56 billion compared to Rs2.80 billion, showing a substantial increase of 313pc YoY. However, net interest margin (NIM) remained at Rs17.15 billion. Accordingly, during nine months period ended September 30, 2020, preprovision profit improved to Rs15.87 billion as against Rs11.99 billion during corresponding period last year thereby, registering a rise of 32pc. However, in view of prevalent economic situation, in addition to subjective assessment, the bank also opted to create general provision against loans and advances on prudent basis.Accordingly, the bank posted before tax profit of Rs10.01 billion as against Rs10.52 billion earned during corresponding period of year 2019. Earnings per Share (EPS) for the nine months of year 2020 remained at the level of Rs. 2.20 per share.