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The Bank of Punjab's (BoP) earnings during the first half of the current year ended on June 30 are expected to depict a sanguine growth at Rs 2,231 million, 46 percent higher from Rs 1,531 million during the same period last year.
This translates into an earning per share (EPS) at Rs 7.78 in the first half of 2006 as compared to Rs 5.34 during the corresponding period last year.
The financial results of the bank for the first half of 2006 are likely to be announced shortly. Earnings are expected to solidify on the dual growth in net interest income and dividend receipts of NIT. Net mark-up income is expected to depict 25 percent surge to Rs 1,962 million compared to Rs 1,571 million during the first half of FY05.
Non-mark-up income of the bank is to swell by 91 percent to Rs 1,805 million as against Rs 948 million previously on the back of exceptional dividend pay-out by NIT. Faisal Khatri, an analyst at Live Research said that the after tax per share impact of NIT's dividend is Rs 2.90 in the first half of FY06 earnings.
The BoP's earnings during the quarter ended March 2006 portrayed 61 percent growth to Rs 585 million as against Rs 364 million during the corresponding period of the last year.
This translates into an EPS at Rs 2.04 as against Rs 1.27 previously. BoP's total revenues were up 65 percent with net mark-up income and non mark-up income soaring by 35 percent and 145 percent respectively.
Interest expensed was 317 percent higher, outpacing the 129 percent growth in interest earned attributable to narrowing spreads. Provisionally under various heads marked 10 times surge to Rs 100 million as against Rs 8 million previously.
Administrative expenses increased by 45 percent to Rs 383 million compared to Rs 265 million last year.

Copyright Business Recorder, 2006

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