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MEBL earns over Rs25bn in 3QFY24, rewards Rs7 dividend

MEBL earns over Rs25bn in 3QFY24
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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