LAHORE – The Bank of Punjab (BOP), after a period of three years, has announced its annual results for 2009-11. As expected, the bank posted losses during 2009 and 2010 on account of high provisions and write off of Rs10.2 billion and Rs3.3 billion respectively, experts said.

They added that Bank of Punjab (BOP) had stopped publishing its accounts since 2008 when the investigations began against the irregularities of the bank in 2007. The stock’s perception has remained negative since 2007 on account of limitation of scope with regards to determining provisions on Rs8.6 billion loans to 3 companies, mainly Haris Group.

Experts said that along with the provisions, net interest income (NII) also remained in red owing to higher deposit rates so as to keep their deposit base intact. However, with reversal in provision against loans of Rs3.2 billion in 2011 led to a green bottom line for the bank, nonetheless, NII still remained negative. As a result, the bank was able to post a Profit after tax of Rs347 million in 2011 compared to losses of Rs4 billion and Rs10.1 billion in 2010 and 2009 respectively.

As far as the balance sheet is concerned BOP’s deposit base grew by 25 per cent since 2009 to Rs238 billion while advances and investments witnessed a growth of 5 per cent and 60 per cent respectively, during the same period. Bank’s equity, which had wiped down to Rs3.7 billion in 2008, has also recovered and rose to Rs10.7 billion in 2011.