The Bank of Punjab (BOP) has declared its best ever operating performance for the first half of 2026 with operating profit reaching 67 percent year on year to Rs22.5 billion.

Net interest income grew 29 percent to Rs46.1 billion and non-markup revenue excluding gains grew 61 percent to Rs11.9 billion. The bank also announced its largest interim dividend on record – 16 percent in cash – in a sign of its continuing earnings growth and payments to shareholders.

The Board of Directors of BOP has examined and approved the unaudited results for the six months ended June 30, 2026. The results show continued commercial growth, rigorous cost control and enhanced revenue diversity throughout the bank’s activities.

Highlights at a Glance 1st Half 2026

Financial Performance Year-on-Year Growth Net Interest Income Rs46.1 billion (+29%)
Non-Markup Income Rupees 11.9 billion (+61%)
Operating Profit Rs22.5 billion (+67%)
Profit Before Tax Rs20.5 billion (+35%)
Profit After Tax Rs 9.5 billion (+40%)

Earnings growth

During the period, BOP’s earnings before tax was up 35 percent year on year to Rs20.5 billion while profit after tax was 40 percent to Rs9.5 billion.

The bank said the superior earnings performance was due to active asset-liability management, higher fee-based income and more diversified revenues. Disciplined expense control and enhanced operational efficiency also underpinned profitability, with the cost-to-income ratio improving by 2.40 percentage points throughout the first half of 2025.

The bank’s financial standing was sound, with total assets of Rs2,504 billion in the time. Total deposits were Rs2,154 billion, backed by 20 percent YoY growth in current deposits. Average current deposits grew much more strongly, at 26 percent.

BOP has increased its lending operations with total advances also up by 28 percent to Rs996 billion. “The bank continued to support economic activity through disciplined lending. “The loans include financing for important sectors of the economy.

It was well capitalised relative to regulatory standards. The capital adequacy ratio was 13.69 percent and the leverage ratio was 3.65 percent. BOP also completely complied with the provisioning requirements under IFRS9.

Strategic Growth

In 2026, the bank was given a significant boost to its credit status when the Pakistan Credit Rating Agency (PACRA) raised its long-term entity rating to AAA, the highest possible rating, with a Stable Outlook. The upgrading is a reflection of the development of BOP’s financial profile, market position, risk management and governance structure.

BOP is also expanding its international activities as it received in-principle approval from the State Bank of Pakistan to establish an Overseas Wholesale Banking Unit in Bahrain. The new business is designed to increase the bank’s cross-border banking capabilities, improve regional connections and foster institutional links across the Middle East.

Another noteworthy development is the proposed issuing of ordinary shares to the Government of Punjab for an amount of up to PKR30 billion. The idea, which still requires shareholder and regulatory clearances, would be carried out in two stages.

The proposal is for up to PKR20 billion to be infused by December 31, 2026 with the rest to be subscribed by June 30, 2027. The proposed equity support would enhance the bank’s ability to expand its balance sheet, and provide greater flexibility for strategic growth.

Banking awards

BOP has bagged three honours at Pakistan Banking honours 2026 winning the Best Bank for Agriculture Inclusion, Best SME Bank and Best Bank for Women’s Inclusion.

It is the third consecutive year that the bank has been recognised in both the agriculture and women’s inclusion awards and the fourth time it has won the SME award in five years.

BOP said it is the only bank to have received three prizes for two consecutive years and the only bank to have achieved what it characterised as a unique vertical and horizontal hat-trick throughout the accolades.

The bank remains a financial partner to the Government of Punjab, supporting public welfare programs, priority-sector financing and wider development efforts. It offers traditional and digital banking services to individuals, farmers, SMEs, corporate customers and public-sector entities, with a growing national footprint and a focus on financial inclusion.