Title: Meezan Bank Reports Impressive 65% Year-on-Year Profit Growth in 1Q2024, Declares Cash Dividend
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Meezan Bank Limited (PSX: MEBL) has disclosed a robust financial performance for the quarter ending March 31st, 2024 (1Q2024), with a profit after tax (PAT) reaching Rs. 25 billion, marking a substantial 65 percent increase year-on-year (YoY).
According to Arif Habib Limited, the bank’s earnings were propelled by a YoY uptick in income. However, a sequential comparison revealed a decline in income, which impacted overall profitability on a quarter-on-quarter (QoQ) basis.
Accompanying the financial results, MEBL also announced a cash dividend of Rs. 7 per share.
During the first quarter of CY24, the bank reported a net profit earned of Rs. 67.6 billion, indicating a noteworthy 65 percent YoY surge, albeit showing a 6 percent decline QoQ. While the profit saw a substantial 45 percent rise YoY, it experienced a 7 percent decrease QoQ. Concurrently, profit expenses increased by 26 percent YoY, while decreasing by 8 percent compared to the previous quarter.
MEBL witnessed a 66 percent increase in Non-Funded Income YoY in the outgoing quarter, primarily driven by higher fee income, up by 46 percent YoY, and dividend income, which rose by 64 percent YoY. However, on a QoQ basis, Non-Funded Income was adversely affected by lower FX income, down by 51 percent QoQ, and a decrease in Gain on Securities by 64 percent QoQ.
The bank recorded provisioning reversals amounting to Rs. 344 million in 1QCY24, a significant contrast to a charge of Rs. 2.1 billion in the same period last year and a charge of Rs. 2.9 billion in the previous quarter.
Operating expenses (OPEX) witnessed a jump of 45 percent YoY and 2 percent QoQ in 1QCY24, reaching Rs. 21.9 billion. Consequently, the Cost/income ratio stood at 29.3 percent for 1QCY24, down from 33.4 percent in the same period last year.
The effective tax rate for the bank surged to 52 percent during 1QCY24, reflecting an increase from 45 percent in the same period last year.
MEBL reported earnings per share of Rs. 14.19 for 1Q2024 compared to an EPS of Rs. 8.63 in the same period last year.
At the bourse, the bank’s scrip closed at Rs. 219, witnessing a 4.61 percent decrease or Rs. 10.59, with a turnover of 5.2 million shares on Thursday.
