Lahore, February 17, 2025 – The Board of Directors of The Bank of Punjab (BOP) convened on February 17, 2025, to review and approve the Annual Audited Financial Statements for the year ending December 31, 2024. Despite challenges such as the implementation of IFRS-9, debt restructuring of a major state-owned entity, a challenging interest rate environment, and significant technology investments, the bank recorded a pre-tax profit of Rs. 24.56 billion for 2024.
In a historic move, the Board declared a cash dividend of Rs. 1.8 per share, marking the highest-ever profit and the largest cash dividend payout in BOP’s 35-year history.
Financial Performance and Growth
BOP’s total deposits saw a substantial increase, reaching PKR 1,710 billion compared to PKR 1,521 billion in 2023. A key driver of this growth was a 24% rise in current account deposits, which climbed to PKR 354 billion, making up 20.7% of total deposits. Over the past three years, these deposits have more than doubled, strengthening the bank’s balance sheet, which expanded to PKR 2,380 billion. Revenue growth remained strong across all segments, with fee income and capital gains growing by 51% year-over-year.
The cost-to-income ratio improved to 60.76 (adjusted) in 2024. Based on September 2024 results, BOP reported the lowest cost per employee at PKR 2.4 million compared to a peer average of PKR 3.6 million. Additionally, the bank recorded the second-lowest cost per branch at PKR 45.5 million against a peer average of PKR 56.3 million, and a total administrative cost-to-gross revenue ratio of 12.2%, well below the industry average of 15.0%.
Strategic Roadmap and Future Plans
The Board approved BOP’s inaugural dividend policy, which considers interim and quarterly dividends in addition to the traditional annual payout. With a preference for cash dividends over bonus shares, this move is expected to enhance investor confidence and attract long-term institutional investments, given BOP’s stable earnings outlook.
Looking ahead, the Board endorsed the strategic roadmap for 2025-27, emphasizing growth, capital strengthening, digital innovation, and cost efficiency. A key focus area is the acceleration of the transition to a fully Shariah-compliant banking model, in alignment with the State Bank of Pakistan’s guidelines. The bank also plans to expand its digital services, integrate advanced cybersecurity measures, and introduce AI-powered financial solutions to enhance customer experience and operational efficiency.
Commitment to Public Sector and Digital Banking
BOP’s management received commendation for successfully executing key initiatives under the Chief Minister of Punjab’s programs, including the Kissan Card, Livestock Card, Student Bike Scheme, Dhee Rani Card, Minority Card, and Asaan Karobar Finance & Card Schemes. The bank has played a crucial role in facilitating these schemes through its robust digital banking infrastructure.
Additionally, BOP has contributed significantly to the execution of the CM Punjab Apni Chat Apna Ghar scheme, providing home financing solutions for low- and middle-income families. With a clear vision, strong leadership, and a solid financial position, BOP remains poised for continued growth, delivering greater value to its customers, investors, and the broader economy.
