Bank of Punjab Reports Record Growth, Announces Interim Cash Dividend

Lahore: The Bank of Punjab (BOP) reported unprecedented growth in the first half of 2025 during a corporate briefing for analysts and investors. The bank, led by President and CEO Zafar Masud, recorded a 278% increase in operating profit and announced its first-ever interim cash dividend of 10%. The bank’s share price surged by 294% over the past year, pushing its market capitalization to Rs. 63 billion.

BOP’s performance was attributed to strategic structural improvements in its deposit mix, digital adoption, and growing fee income streams. The management assured that these factors contribute to the sustainability of its performance, rather than being dependent on one-off gains.

The potential impact of recent floods on the bank’s agriculture and SME portfolios was addressed, with management noting that only a small portion of the bank’s loan book is exposed to flood-affected areas. They highlighted that a significant part of this exposure is covered by first-loss guarantees under government schemes, ensuring resilience.

Regarding term deposits, BOP reported that 87% of Rs. 502 billion in term deposits had matured by August, improving liability spreads. The bank’s investment strategy is diversified, with a mix of floating rate bonds, fixed PIBs, and T-bills.

BOP’s management also discussed the improved current account ratio, which increased from 17% in 2023 to 24% in 2025. This improvement reflects efforts to strengthen the low-cost deposit base through Islamic banking expansion and digital initiatives.

Though the bank does not provide formal guidance on share price, management expressed optimism about continued momentum, supported by structural reforms and strong fundamentals.

President and CEO Zafar Masud highlighted the effectiveness of the bank’s strategic changes and the cautious approach to external risks, including climate-related challenges. Looking ahead, BOP aims to enhance customer experience, accelerate digital transformation, and expand financial inclusion, focusing on SME, agriculture, and housing finance.