Bank of Punjab announces record profit and dividend

The Bank of Punjab (BOP) reported its highest-ever profitability and announced a record cash dividend in its 35-year history during a board meeting held on February 17, 2025.

Despite challenges such as the implementation of IFRS-9, debt restructuring of a large state-owned entity, and a difficult interest rate environment, BOP achieved a pre-tax profit of PKR 24.56 billion in 2024. The board declared a cash dividend of PKR 1.8 per share, marking a historic milestone.

Total deposits surged to PKR 1,710 billion from PKR 1,521 billion in 2023, with a significant contribution from a 24% increase in current account deposits.

The balance sheet expanded to PKR 2,380 billion, further strengthening the bank's financial and capital position. Revenue growth remained robust across all segments, especially in fee income and capital gains, which increased by 51% during the year. The cost-to-income ratio improved to 60.76% in 2024.

BOP maintained the lowest cost per employee and the second-lowest cost per branch compared to peers, demonstrating strong cost discipline and operational efficiency.

The bank’s first dividend policy was approved, exploring interim and quarterly dividends, with a preference for cash dividends over bonus shares to attract long-term institutional investments.

Looking ahead, the board approved a strategic roadmap for 2025-27 focusing on growth, capital build-up, digital innovation, and cost efficiency. A key priority is transitioning to a fully Shariah-compliant banking model in line with SBP guidelines.

Additionally, BOP will expand its digital services with enhanced cybersecurity measures and introduce AI-powered financial solutions.

The bank also plays a pivotal role in 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. Furthermore, BOP has been instrumental in the successful implementation of the CM Punjab Apni Chat Apna Ghar scheme, facilitating home financing for low- and middle-income families.

With a clear vision, strong leadership, and a robust financial position, BOP is well-positioned to continue its growth trajectory and deliver greater value to its customers, investors, and the broader economy.