Karachi, August 8, 2024 — Meezan Bank Limited (PSX: MEBL) has reported its highest-ever quarterly earnings, recording a profit of Rs. 26.7 billion for the second quarter of the calendar year 2024 (2QCY24). This marks a significant 55% year-on-year (YoY) increase and a 5% rise quarter-on-quarter (QoQ). The result underscores the bank’s robust financial performance amid challenging economic conditions.
According to Topline Securities, these figures represent the highest quarterly earnings in the bank’s history. The first half of the calendar year 2024 (1HCY24) has seen the bank’s cumulative earnings reach Rs. 51.8 billion, reflecting an impressive 59% YoY growth.
In addition to the stellar earnings, Meezan Bank has declared a second interim cash dividend of Rs. 7.0 per share for 2QCY24, bringing the total dividend for 1HCY24 to Rs. 14.0 per share.
The strong profitability was primarily driven by a 42% YoY and 4% QoQ increase in net spread earnings, which rose to Rs. 70 billion in 2QCY24. This growth was fueled by a rise in asset yields and an increase in zero-cost current account deposits.
Meezan Bank also recorded a provision reversal of Rs. 935 million in 2QCY24, a notable improvement compared to a provision expense of Rs. 1.5 billion in the corresponding quarter last year. The bank’s other income grew by 4% YoY, although it declined by 16% QoQ during the quarter.
Despite a 35% YoY and 4% QoQ rise in other expenses, which totaled Rs. 21.2 billion due to the bank’s expanding branch network and inflationary pressures, the cost-to-income ratio improved to 29% in 2QCY24, compared to 30% in 2QCY23.
The effective tax rate for Meezan Bank was recorded at 51% in 2QCY24, slightly lower than the 53% reported in the same quarter last year and 52% in the previous quarter.
Meezan Bank posted earnings per share (EPS) of Rs. 14.88 for 2QCY24, bringing the EPS for 1HCY24 to Rs. 28.89.
On the Pakistan Stock Exchange (PSX), Meezan Bank’s share price closed at Rs. 241.96 on Thursday, registering a modest increase of 0.03%, or Rs. 0.07, with over 1 million shares traded.