April 18, 2024 (MLN): Extending its journey of success, Meezan Bank Limited (PSX: MEBL)’s earnings surged by 64.52% YoY to Rs25.54 billion [EPS: Rs14.19] during the three months ended on March 31, 2024, compared to the Rs15.53bn [EPS: Rs8.63] profit earned in the same period last year.
To reward shareholders for this remarkable performance, the Board of Directors (BoD) of the bank has declared an interim cash dividend of Rs7 per share i.e. 70%.
Going by the income statement, the bank witnessed an increase of 64.5% YoY in its net spread earned to stand at Rs67.56bn, compared to Rs41.07bn in 3QFY23.
The surge in profit is attributed to a significant jump in the spread earned on Islamic financing and related assets, investments, and placements (Rs119.15bn) in 3QFY24.
Further contributing to the bank’s profits, the total other income increased by 66% YoY to Rs6.69bn, owing to a significant rise in Foreign Exchange Income to clock in at Rs5.91bn, up by 46.23% YoY.
Other components of the other income section also demonstrated improved performance, as the bank managed to convert its foreign exchange and securities losses into income.
On the expense side, the bank’s total other expenses expanded by 44.59% YoY to Rs21.86bn in 3QFY24 compared to Rs15.12bn in 3QFY23.
The increase was associated with a growth in operating expenses that were recorded at Rs20.6bn during the review quarter.
Likewise, MEBL’s expenses towards the Workers' welfare fund and other charges also went up.
Moving forward, the result shows that the bank’s share from associates also surged to Rs374.59m in 3QFY24, in contrast to an income of just Rs26.46m in SPLY.
Regarding provision, the bank incurred an expense of Rs344.14m during the review period compared to the reversal of Rs2.13bn in the corresponding period last year.
On the tax front, the bank paid Rs27.84bn, 2.22x YoY higher than the amount paid in the same quarter last year.
| Consolidated Profit and Loss Account for the quarter ended March 31, 2024 ('000 Rupees) | |||
|---|---|---|---|
| Mar-24 | Mar-23 | % Change | |
| Profit/return earned on islamic financing and related assets. Investments and placements | 119,145,320 | 81,988,469 | 45.32% |
| Profits on deposits and other dues expensed | 51,588,995 | 40,920,804 | 26.07% |
| Net spread earned | 67,556,325 | 41,067,665 | 64.50% |
| OTHER INCOME | – | ||
| Fee and commission income | 5,914,978 | 4,044,864 | 46.23% |
| Dividend income | 182,647 | 111,252 | 64.17% |
| Foreign exchnage income | 477,930 | -155,042 | -408.26% |
| (Loss) / gain on securities-net | 60,100 | -92,060 | -165.28% |
| Other income | 329,270 | 286,674 | 14.86% |
| Total other income | 6,964,925 | 4,195,688 | 66.00% |
| Total income | 74,521,250 | 45,263,353 | 64.64% |
| OTHER EXPENSES | – | ||
| Operating expenses | 20,598,165 | 14,519,265 | 41.87% |
| Workers' Welfare Fund | 1,128,469 | 595,835 | 89.39% |
| Other charges | 132,596 | 2,828 | 4588.68% |
| Total other expenses | 21,859,230 | 15,117,928 | 44.59% |
| 52,662,020 | 30,145,425 | 74.69% | |
| Share of results of associates before taxation | 374,589 | 26,463 | 1315.52% |
| Profit before provisions | 53,036,609 | 30,171,888 | 75.78% |
| Provisions and write offs -net | -344,143 | 2,129,887 | -116.16% |
| Extraordinary/unusual items | – | – | – |
| Profit before taxation | 53,380,752 | 28,042,001 | 90.36% |
| Taxation | 27,836,462 | 12,515,818 | 122.41% |
| Profit after taxation | 25,544,290 | 15,526,183 | 64.52% |
| Basic earnings per share (Rupees) | 14.19 | 8.63 | – |
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Posted on: 2024-04-18T13:50:15+05:00
