Lahore (Web News)
The Board of Directors of The Bank of Punjab (BOP) held a meeting to review and approve the audited financial statements for the fiscal year ending December 31, 2024.
Despite various challenges, such as the implementation of IFRS-9, the restructuring of a major public sector entity’s loan, high interest rates, MDR irregularities, and significant investments in technology and infrastructure, the bank demonstrated exceptional financial performance. In 2024, the bank’s pre-tax profit reached PKR 24.56 billion, while the board approved a cash dividend of PKR 1.8 per share, marking the highest cash dividend in the bank’s 35-year history.
Strong Financial Performance
The bank’s total deposits witnessed a significant increase, rising from PKR 1,521 billion in 2023 to PKR 1,710 billion. A 24% growth was recorded in current account deposits, which surged to PKR 354 billion, making up 20.7% of total deposits. Over the past three years, the volume of current accounts has doubled.
The bank’s balance sheet also expanded to PKR 2,380 billion, with substantial improvement in revenue across all sectors, particularly in fee income and capital gains, which grew by 51% during the year. The cost-to-income ratio improved to 60.76% (adjusted) in 2024, reflecting the bank’s effective cost management strategy.
Dividend Policy and Strategic Goals
The board also approved BOP’s inaugural dividend policy, prioritizing cash dividends over annual bonus shares. The policy also considers the possibility of interim or quarterly dividends, aiming to boost investor confidence and attract long-term institutional investments.
Furthermore, the strategic roadmap for 2025-27 was approved, emphasizing growth, investment, digital innovation, and cost-effective strategies. Under this plan, the bank will accelerate its transition towards a Shariah-compliant banking model in accordance with State Bank guidelines.
Digital Innovation and Government Partnerships
BOP is set to enhance its digital services by adopting advanced cybersecurity measures and introducing AI-based financial solutions to improve customer experience and operational efficiency.
In terms of government project partnerships, the board appreciated the bank’s active role in the Chief Minister of Punjab’s flagship programs, including the Kisan Card, Livestock Card, Student Bike Scheme, Dhee Rani Card, Minority Card, and the Asaan Karobar Finance and Card Scheme. Additionally, BOP played a key role in the successful implementation of the “Apna Ghar” scheme, providing housing finance to low- and middle-income families.
Conclusion
The Bank of Punjab remains committed to maintaining its leadership position in the country’s banking sector through outstanding financial performance, strong governance, and digital innovation.