The Bank of Punjab (BOP) hosted a corporate briefing for analysts, brokerages, and market participants to discuss its financial performance and outlook. The session was led by President & CEO Zafar Masud, alongside senior executives including Nadeem Amir (CFO), Nofel Daud (CDO), Kamran Hafeez (Company Secretary), Qasim Nadeem (Group Head Treasury & Capital Markets), and Umer Khan (Group Head Corporate & Investment Banking).
Record-Breaking Financial Performance
BOP reported its highest-ever half-year results in the first half of 2025. Operating profit surged by 278%, while Profit Before Tax reached Rs. 15.2 billion, marking a historic milestone. The bank also announced its first-ever interim cash dividend of 10% under a new dividend policy. Deposits showed strong momentum, with current deposits rising by 43% and Islamic deposits by 80%.
As a result, the bank’s share price appreciated by 294% in one year, taking its market capitalization to Rs. 63 billion.
Sustainability of Growth
Management assured investors that profitability is built on structural improvements in deposit mix, digital adoption, and growing fee income streams, making results sustainable rather than one-off.
Addressing Flood Impact
Analysts questioned the effect of recent floods on BOP’s agriculture and SME portfolios, which make up about one-third of its loan book. Management clarified that only 8% exposure lies in flood-hit areas, with 76.59% covered by government guarantees. Less than 0.18% of total exposure is unsecured, while the Kissan Card portfolio maintains 99% repayment rates.
Investment and Deposit Strategy
On repricing, management explained that 87% of term deposits worth Rs. 502 billion matured by August, improving liability spreads. The investment portfolio consists of 57% floating bonds, 19% fixed PIBs, and 24% T-bills, reflecting a balanced approach.
The bank’s current account ratio improved from 17% in 2023 to 24% in 2025, surpassing targets. This growth was supported by Islamic banking expansion and digital-first initiatives.
Share Price and Future Outlook
While avoiding formal guidance on share price, management expressed confidence in continued momentum, driven by structural reforms, dividends, and sustained profitability.
Zafar Masud commented: “Our results reflect years of structural reforms, private low-cost deposit mobilization, and efficient treasury operations. We remain prepared to navigate external risks while delivering consistent value to stakeholders.”
Looking ahead, BOP plans to accelerate digital transformation, expand financial inclusion, and prioritize SME, agriculture, and housing finance.
