LAHORE (Dunya News) - The Bank of Punjab (BOP) has reported its strongest-ever operating performance for the first half of 2026, with operating profit rising 67 percent year on year to Rs22.5 billion.
Net interest income increased 29 percent to Rs46.1 billion, while non-markup income, excluding gains, surged 61 percent to Rs11.9 billion. The bank has also declared its highest-ever interim cash dividend of 16 percent, underlining its continued earnings growth and shareholder returns.
The unaudited results for the six months ended June 30, 2026, were reviewed and approved by BOP’s Board of Directors. The results reflect sustained business momentum, disciplined cost management and stronger revenue diversification across the bank’s operations.
1st Half 2026 Highlights at a Glance
Financial Performance Year-on-Year Growth Net Interest Income Rs46.1 billion (+29%) Non-Markup Income Rs11.9 billion (+61%) Operating Profit Rs22.5 billion (+67%) Profit Before Tax Rs20.5 billion (+35%) Profit After Tax Rs9.5 billion (+40%)Earnings growth
BOP’s profit before tax climbed 35 percent year on year to Rs20.5 billion during the period, while profit after tax rose 40 percent to Rs9.5 billion.
The bank attributed the improved earnings performance to proactive asset-liability management, stronger fee-based income and broader revenue diversification. Disciplined expense management and greater operational efficiency also supported profitability, with the cost-to-income ratio improving by 2.40 percentage points compared with the first half of 2025.
The bank maintained a solid financial position during the period, with total assets reaching Rs2,504 billion. Total deposits rose to Rs2,154 billion, supported by 20 percent year-on-year growth in current deposits. Average current deposits recorded an even stronger 26 percent increase.
BOP also expanded lending activity, with gross advances increasing 28 percent to Rs996 billion. The advances included financing for priority sectors of the economy, as the bank continued supporting economic activity through disciplined lending.
Its capital position remained above regulatory requirements. The Capital Adequacy Ratio stood at 13.69 percent, while the leverage ratio was recorded at 3.65 percent. BOP also remained fully compliant with provisioning requirements under IFRS 9.
Strategic expansion
The bank received a major boost to its credit standing during 2026 when the Pakistan Credit Rating Agency (PACRA) upgraded its long-term entity rating to AAA, the highest possible rating, with a Stable Outlook. The upgrade reflects the strengthening of BOP’s financial profile, market position, risk management and governance framework.
BOP is also preparing to expand its international operations after receiving in-principle approval from the State Bank of Pakistan to establish an Overseas Wholesale Banking Unit in Bahrain. The proposed unit is expected to strengthen the bank’s cross-border banking capabilities, improve regional connectivity and support institutional relationships across the Middle East.
Another major development is the proposed issuance of ordinary shares to the Government of Punjab for up to PKR30 billion. The proposal, which remains subject to the required shareholder and regulatory approvals, would be implemented in two tranches.
Under the proposal, up to PKR20 billion would be injected by December 31, 2026, with the remaining amount to be subscribed by June 30, 2027. The proposed equity support would increase the bank’s capacity for balance sheet expansion while providing greater flexibility for strategic growth.
Banking awards
BOP also secured three awards at the Pakistan Banking Awards 2026, winning Best Bank for Agriculture Inclusion, Best SME Bank and Best Bank for Women’s Inclusion.
The agriculture and women’s inclusion awards mark the bank’s third consecutive year of recognition in both categories, while its SME award represents its fourth win in the category over the past five years.
BOP said it is the only bank to have won three awards for two consecutive years and the only bank to achieve what it described as a unique vertical and horizontal hat-trick across the awards.
The bank continues to serve as a financial partner to the Government of Punjab, supporting public welfare programmes, priority-sector financing and broader development initiatives. Its operations span conventional and digital banking services for individuals, farmers, SMEs, corporate customers and public-sector institutions, alongside its expanding national footprint and focus on financial inclusion.