A meeting of the Board of Directors of The Bank of Punjab (BOP) was held on 17th February 2025 to review and approve the Annual Audited Financial Statements for the year ended December 31, 2024.
Despite facing challenges on both the revenue and expenditure sides, including the implementation of IFRS-9, the debt restructuring of a large state-owned entity, a difficult interest rate environment, the MDR anomaly, and significant investments in technology and infrastructure, the Bank posted a pre-tax profit of Rs. 24.56 billion for the year 2024. The Board also declared a cash dividend of Rs. 1.8 per share, marking a historic milestone with the highest-ever profit and the largest cash dividend payout in the bank’s 35-year history.
Total deposits grew to PKR 1,710 billion from PKR 1,521 billion in 2023. A significant contributor to this growth was the 24% increase in current account deposits, which rose to PKR 354 billion and now constitute 20.7% of total deposits. These deposits have more than doubled over the past three years.
The balance sheet expanded to PKR 2,380 billion, further strengthening the bank’s financial and capital position. Revenue growth remained strong across all segments, particularly in fee income and capital gains etc., which grew by 51% during the year. The Board acknowledged that the cost-to-income ratio improved to 60.76% (adjusted) in 2024. Based on September 2024 results, the Bank maintained the lowest cost per employee at PKR 2.4 million against a peer average of PKR 3.6 million, 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% compared to the industry average of 15.0%, demonstrating strong cost discipline and operational efficiency.