August 08, 2024 (MLN): Meezan Bank Limited (PSX: MEBL)’s earnings surged 54.65% YoY to Rs26.89 billion [EPS: Rs14.9] during the quarter ended June 30, 2024, compared to the Rs17.39bn [EPS: Rs9.66] 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%.
This is in addition to the interim Dividend already paid at Rs71- per share.
Going by the income statement, the bank witnessed an increase of 41.98% YoY in its net spread earned to stand at Rs70.35bn, compared to Rs49.55bn in Q2 CY23.
The surge in profit is attributed to a significant jump in the spread earned on Islamic financing and related assets, investments, and placements (Rs130.22bn) in Q2 CY24.
Further contributing to the bank’s profits, the total other income increased by 31.36% YoY to Rs7.24bn, owing to a significant rise in Fee and commission income to clock in at Rs5.41bn, up by 18.73% YoY.
Other components of the other income section also demonstrated improved performance, as the bank managed to convert its loss on securities into income.
On the expense side, the bank’s total other expenses expanded by 37.83% YoY to Rs22.71bn in Q2 CY24 compared to Rs16.48bn in the same quarter last year.
The increase was associated with a growth in operating expenses recorded at Rs21.58bn during the review quarter.
Likewise, MEBL’s expenses for the workers' welfare fund also went up.
Moving forward, the results show that the bank faced a loss from its share of the results of associates, whereas in Q2 CY23, MEBL reported a gain of Rs83.78m.
Regarding provision, the bank incurred an expense of Rs328.06m during the review period compared to the reversal of Rs1.5bn in the corresponding period last year.
On the tax front, the bank paid Rs27.74bn, 40.28 YoY higher than the amount paid in the same quarter last year.
| Consolidated Profit and Loss Account for the quarter ended June 30, 2024 ('000 Rupees) | |||
|---|---|---|---|
| Jun-24 | Jun-23 | % Change | |
| Profit/return earned on islamic financing and related assets. Investments and placements | 130,216,127 | 101,057,569 | 28.85% |
| Profits on deposits and other dues expensed | 59,863,487 | 51,506,959 | 16.22% |
| Net spread earned | 70,352,640 | 49,550,610 | 41.98% |
| OTHER INCOME | – | ||
| Fee and commission income | 5,414,732 | 4,560,377 | 18.73% |
| Dividend income | 473,545 | 216,054 | 119.18% |
| Foreign exchnage income | 101,254 | 695,843 | -85.45% |
| (Loss) / gain on securities-net | 967,776 | -248,750 | – |
| Other income | 278,506 | 284,695 | -2.17% |
| Total other income | 7,235,813 | 5,508,219 | 31.36% |
| Total income | 77,588,453 | 55,058,829 | 40.92% |
| OTHER EXPENSES | – | ||
| Operating expenses | 21,581,077 | 15,522,002 | 39.04% |
| Workers' Welfare Fund | 1,125,476 | 903,938 | 24.51% |
| Other charges | 923 | 49,452 | -98.13% |
| Total other expenses | 22,707,476 | 16,475,392 | 37.83% |
| 54,880,977 | 38,583,437 | 42.24% | |
| Share of results of associates before taxation | -580,560 | 83,778 | -792.97% |
| Profit before provisions | 54,300,417 | 38,667,215 | 40.43% |
| Provisions and write offs -net | -328,058 | 1,504,487 | -121.81% |
| Extraordinary / unusual items | – | – | – |
| Profit before taxation | 54,628,475 | 37,162,728 | 47.00% |
| Taxation | 27,742,136 | 19,776,905 | 40.28% |
| Profit after taxation | 26,886,339 | 17,385,823 | 54.65% |
| Basic earnings per share (Rupees) | 14.9 | 9.66 | – |
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Posted on: 2024-08-08T13:31:28+05:00
