Islamabad, Oct 21: Meezan Bank Reports Record-Breaking Rs. 78.3 Billion Profit in First 9 Months of 2024. According to Arif Habib Limited, Meezan Bank Limited (PSX: MEBL) reported earnings of Rs. 78.3 billion for 9MCY24, a 34 percent YoY increase.
Total earnings for 3QCY24 were Rs. 26.2 billion (EPS: Rs. 14.6), showing a 1 percent YoY increase but a 2 percent QoQ decrease. The bank also announced a cash dividend of Rs. 7/share in 3QCY24, bringing the total payout for 9MCY24 to Rs. 21.0/share.
The bank’s net profit for 3QCY24 was Rs. 76.9 billion, up 20 percent YoY | 9 percent QoQ (9MCY24: Rs. 214.8 billion, +39 percent YoY). The bank’s non-funded income decreased 6 percent YoY during 3QCY24, bringing the total for 9MCY24 to Rs. 20.6 billion, a 25 percent YoY increase. This increase was mainly driven by a 33 percent YoY increase in fee income, reaching Rs. 18.3 billion, and a boost in dividend income.
It increased from Rs. 441 billion to Rs. 488 million over the same time previous year. Additionally, the sale of securities brought in Rs. 283 million for the bank, whereas the same period the previous year had a loss of Rs. 867 million.
In contrast to the provisioning charge of Rs. 4.4 billion in 9MCY23, a provisioning charge of Rs. 2.6 billion was recorded in the previous quarter, bringing the provisioning charge for the 9MCY24 to Rs. 1.9 billion.
In 3QCY24, the bank’s OPEX climbed 19% year over year and 4% quarter over quarter, totaling Rs. 23.6 billion. As a result, the cost/income ratio was 28.3% in 3QCY24 compared to 27.9% in SPLY.
The bank has probably experienced ADR-related incremental taxes, as evidenced by the fact that the effective tax rate for 3QCY24 increased to 55.0 percent from 48.8 percent during the same time previous year. For example, as of 3QCY24, the bank’s Gross Advance-to-Deposit Ratio (ADR) was 44%.
