External broker reports(aggregated public sources), Topline Securities

Topline Securities

External broker reports(aggregated public sources)

Topline Securities is one of the fastest growing brokerage houses in Pakistan. It has strong equity brokerage, economic / equity research, mutual fund distribution, commodity trading and corporate finance & advisory functions. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>Management said the provision charge of Rs1.8bn in Sep-25 as per IFRS-9. Management believe, flood driven losses are very minimal and bank asset quality will not be affected significantly due to this.</li><li>Management said that 85% of their high-cost TDRs matured in Q2 and Q3, and the average TDR rate has now come down to around 9-9.5%, compared to 16% last year.</li><li>There has been a dip in deposits due to seasonal factors, but the average current account balance increased by 13.33% in Sep-25 compared to Jun-25. On a yearly basis, the average current account balance improved by 36% YoY in Oct-25, reflecting an increase of around Rs 100bn in amount terms vs. SPLY.</li></ul>

Management said the provision charge of Rs1.8bn in Sep-25 as per IFRS-9. Management believe, flood driven losses are very minimal and bank asset quality will not be affected significantly due to this.Management said that 85% of their high-cost TDRs matured in Q2 and Q3, and the average TDR rate has now come down to around 9-9.5%, compared to 16% last year.There has been a dip in deposits due to seasonal factors, but the average current account balance increased by 13.33% in Sep-25 compared to Jun-25. On a yearly basis, the average current account balance improved by 36% YoY in Oct-25, reflecting an increase of around Rs 100bn in amount terms vs. SPLY.

Topline Flash Note: Bank of Punjab (BOP): Corporate Briefing Key Takeaways

<ul><li>The improvement in NIMs is expected to continue in 2H2025 as few more TDRs have matured/repriced till Aug and remaining will be repriced/matured in 4Q2025. Due to this repricing/maturity, the bank will save around 4-5% spread on TDR portfolio.</li><li>The bank recorded 116% YoY growth in Net Interest Income (NII) in 1H2025 compared to the corresponding period last year. Management attributed 25% of this growth to MDR while 75% to initiatives such as higher current account balances, repricing of term deposits, and stronger yields on lending.</li><li>Average current account balances improved by 40%, while 64% of TDRs matured by Jun-25, both contributing to the increase in NII.</li></ul>

The improvement in NIMs is expected to continue in 2H2025 as few more TDRs have matured/repriced till Aug and remaining will be repriced/matured in 4Q2025. Due to this repricing/maturity, the bank will save around 4-5% spread on TDR portfolio.The bank recorded 116% YoY growth in Net Interest Income (NII) in 1H2025 compared to the corresponding period last year. Management attributed 25% of this growth to MDR while 75% to initiatives such as higher current account balances, repricing of term deposits, and stronger yields on lending.Average current account balances improved by 40%, while 64% of TDRs matured by Jun-25, both contributing to the increase in NII.

Topline Flash Note: Bank Of Punjab (BOP): Corporate Briefing Key Takeaways

<ul><li>Pakistan's listed banks profitability clocked in at Rs170bn, up by 8% YoY and 2% QoQ in 3Q2025.</li><li>The Net Interest Income (NII) on YoY basis improved 6% YoY while remains flattish on QoQ basis. The improvement on YoY basis (in absolute terms) is led by United Bank Limited (UBL)’s NII growth of 78% YoY (or Rs40bn) to Rs92bn followed by National Bank (NBP)’s NII growth of 74% YoY (or Rs26bn) to Rs61bn and Bank of Punjab (BOP)’s NII growth of 61% (or Rs9bn) to Rs23bn. Excluding UBL, NBP, and BOP, NII of the sector has declined by 10% YoY.</li><li>Non-interest income of the sector increased by 13% YoY and 1% QoQ to Rs146bn in 3Q2025. The slight QoQ improvement is due to realization of capital gains by few banks coupled with higher fee and FX income.</li></ul>

Pakistan's listed banks profitability clocked in at Rs170bn, up by 8% YoY and 2% QoQ in 3Q2025.The Net Interest Income (NII) on YoY basis improved 6% YoY while remains flattish on QoQ basis. The improvement on YoY basis (in absolute terms) is led by United Bank Limited (UBL)’s NII growth of 78% YoY (or Rs40bn) to Rs92bn followed by National Bank (NBP)’s NII growth of 74% YoY (or Rs26bn) to Rs61bn and Bank of Punjab (BOP)’s NII growth of 61% (or Rs9bn) to Rs23bn. Excluding UBL, NBP, and BOP, NII of the sector has declined by 10% YoY.Non-interest income of the sector increased by 13% YoY and 1% QoQ to Rs146bn in 3Q2025. The slight QoQ improvement is due to realization of capital gains by few banks coupled with higher fee and FX income.

Pakistan Listed Banks: Profit Grew By 8% YoY In 3Q2025; NII Up 6% YoY Led By UBL, NBP And BOP

Thematic (Sector/Industry)

<ul><li>Topline Banking Universe is likely to post an earnings growth of 7% YoY in 2Q2025, driven by higher Net Interest Income (NII) and Non-Interest Income.</li><li>Despite a decline in the average policy rate, NII of banks is expected to increase by 12% YoY due to volumetric growth in current accounts and higher investment yields.</li><li>United Bank (UBL) is likely to post the highest earnings growth of 148% YoY, supported by strong growth in current accounts and positive spreads.</li></ul>

Topline Banking Universe is likely to post an earnings growth of 7% YoY in 2Q2025, driven by higher Net Interest Income (NII) and Non-Interest Income.Despite a decline in the average policy rate, NII of banks is expected to increase by 12% YoY due to volumetric growth in current accounts and higher investment yields.United Bank (UBL) is likely to post the highest earnings growth of 148% YoY, supported by strong growth in current accounts and positive spreads.

Pakistan Banks - Earnings to increase 7% YoY in 2Q2025; Market Weight Stance Maintained

<ul><li>Pakistan's listed banks profitability clocked in at Rs153bn, down by 1% YoY and 2% QoQ in 4Q2024.</li><li>Despite the decline in interest rates, the sector's NII clocked in at Rs523bn, up 5% YoY and 4% QoQ in 3Q2024, led by volumetric growth and favourable repricing impact. Interest income declined by 4% YoY and 13% QoQ to Rs1.6trn, whereas interest expense declined by 8% YoY and 20% QoQ to Rs1.1trn.</li><li>On the other hand, non-interest expense rose by 30% YoY and 42% QoQ to Rs329bn in 4Q2024 due to NBP's one-time pension expense. In the full year 2024, NBP has booked total pension expanse of Rs57bn.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Pakistan's listed banks profitability clocked in at Rs153bn, down by 1% YoY and 2% QoQ in 4Q2024.Despite the decline in interest rates, the sector's NII clocked in at Rs523bn, up 5% YoY and 4% QoQ in 3Q2024, led by volumetric growth and favourable repricing impact. Interest income declined by 4% YoY and 13% QoQ to Rs1.6trn, whereas interest expense declined by 8% YoY and 20% QoQ to Rs1.1trn.On the other hand, non-interest expense rose by 30% YoY and 42% QoQ to Rs329bn in 4Q2024 due to NBP's one-time pension expense. In the full year 2024, NBP has booked total pension expanse of Rs57bn.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pakistan Banks: Listed Banks Profitability Fall 2% QoQ and 1% YoY in 4Q2024

Pakistan

The Bank of Punjab (Pakistan) operates under the status of a scheduled bank in Pakistan. The bank provides commercial bank services.

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Bank of Punjab (BOP PA)

Topline Flash Note: Bank of Punjab (BOP): Corporate Briefing Key Takeaways

Management said the provision charge of Rs1.8bn in Sep-25 as per IFRS-9. Management believe, flood driven losses are very minimal and bank asset...

Topline Securities

Topline Flash Note: Bank Of Punjab (BOP): Corporate Briefing Key Takeaways

The improvement in NIMs is expected to continue in 2H2025 as few more TDRs have matured/repriced till Aug and remaining will be repriced/matured...

Topline Securities

Pakistan Listed Banks: Profit Grew By 8% YoY In 3Q2025; NII Up 6% YoY Led By UBL, NBP And BOP

Pakistan's listed banks profitability clocked in at Rs170bn, up by 8% YoY and 2% QoQ in 3Q2025. The Net Interest Income (NII) on YoY basis...

Topline Securities

Pakistan Banks - Earnings to increase 7% YoY in 2Q2025; Market Weight Stance Maintained

Topline Banking Universe is likely to post an earnings growth of 7% YoY in 2Q2025, driven by higher Net Interest Income (NII) and Non-Interest...

Topline Securities

Pakistan Banks: Listed Banks Profitability Fall 2% QoQ and 1% YoY in 4Q2024

Pakistan's listed banks profitability clocked in at Rs153bn, down by 1% YoY and 2% QoQ in 4Q2024. Despite the decline in interest rates, the...

Topline Securities

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