Karachi, February 13, 2025 – Meezan Bank Limited (MEBL) has announced its financial results for the calendar year 2024, reporting a record-breaking annual profit of Rs. 101.5 billion (Earnings Per Share: Rs. 56.5), reflecting a 20 percent year-on-year (YoY) increase. This milestone positions Meezan Bank as one of the most profitable banks in the sector, according to Arif Habib Limited.
Fourth Quarter Performance
In the fourth quarter of 2024 (4Q2024), the bank recorded earnings of Rs. 23.9 billion (EPS: Rs. 13.36), representing a 9 percent YoY decline and a 7 percent quarter-on-quarter (QoQ) drop. Despite this quarterly slowdown, the bank maintained a strong financial position.
Record Dividend Payout
Alongside its annual results, Meezan Bank declared a fourth interim cash dividend of Rs. 7.0 per share in 4Q2024, bringing the total 2024 dividend payout to an unprecedented Rs. 28.0 per share.
Provisioning and Taxation
Meezan Bank recorded a provision expense of Rs. 7.3 billion in 4Q2024, a significant increase from Rs. 2.5 billion in 3Q2024 and Rs. 2.9 billion in 4Q2023.
The higher provisioning is attributed to the implementation of IFRS-9. Meanwhile, the bank’s effective tax rate stood at 58 percent in 4Q2024 and 54 percent for the full year.
Net Spread and Other Income
The bank’s net spread earned grew marginally by 1 percent YoY but declined 6 percent QoQ to Rs. 72 billion in 4Q2024. The slight YoY increase was driven by higher asset yields, favorable asset repricing, and growth in zero-cost current account deposits.
Other income declined 7 percent YoY but saw a 4 percent QoQ increase in 4Q2024.
Operational Expenses and Growth
Meezan Bank’s other expenses surged by 22 percent QoQ and 14 percent YoY to Rs. 18 billion in 4Q2024. This rise was mainly due to the bank’s expanding branch network and inflationary pressures.
Stock Performance
Meezan Bank remains a preferred choice in the banking sector. The stock is currently trading at a 2025E price-to-earnings (PE) ratio of 5.6x and a price-to-book value (PBV) of 1.5x, with an attractive dividend yield of 10.1 percent.
With strong financial results and a robust dividend payout, Meezan Bank continues to solidify its position as a leading player in Pakistan’s banking sector.
