LAHORE: The Bank of Punjab (BoP) management on Tuesday emphasised that its profitability is built upon structural improvements in deposit mix, accelerated digital adoption and growing fee income streams.

Speaking at a corporate briefing on the bank’s improving financial performance, senior bank management pointed out that the structural improvements, business strategy and operational execution made profitability sustainable and enduring.

The session was led by BoP President & CEO Zafar Masud, group heads and senior executives.

The bank has reported record results in the first half of 2025, with operating profit growing by 278pc and pre-tax profit climbing to Rs15.2bn. It also announced its first-ever interim cash dividend of 10pc. The bank’s market capitalisation has reached a record Rs63bn on 294pc appreciation in its share price in the last one year.

In his remarks, Mr Masud described the results as a culmination of years of structural changes targeting private low-cost deposits, leading to effective repricing of deposits, growth in low-cost current accounts and efficient treasury operations.

“At the same time, we remain cautious and well-prepared to navigate external risks, including climate-related challenges, while delivering consistent value to our stakeholders.”

On the potential impact of floods on its loan portfolio, he explained that agriculture and SME financing account for around a third of the bank’s loan book, but only about 8pc of this exposure lay in flood-affected areas. Of this, nearly 76.59pc is covered through first-loss guarantees provided under various government schemes, leaving only a small proportion uncovered. Within the bank’s own commercial portfolio, less than 0.18pc of the total exposure is uninsured.

The bank management pointed out that Rs502bn in term deposits had been carried over from the previous year. Of this 87pc had already matured by August, leaving only 13pc pending maturity.

This has helped improve spreads on liabilities. On the investment side, the management shared that the portfolio consists of 57pc floating rate bonds, 19pc fixed PIBs, and 24pc T-bills, reflecting a balanced and cautious approach to risk and return. The current account ratio has also improved from 17pc in 2023 to 24pc,

surpassing the bank’s year-end target of 22pc.

Published in Dawn, September 17th, 2025