October 19, 2023 (MLN):Meezan Bank Limited (PSX: MEBL) has revealed its financial statement today for the 9MCY23, as per which the bank posted a profit worth Rs58.91 billion [EPS: Rs32.72], depicting a surge of 2.05x YoY, compared to Rs28.76bn [EPS: Rs15.99] in the same period last year (SPLY), bank’s filing on PSX showed today.
Along with the 9MCY23, the Board of Directors (BoD) of MEBL has recommended an interim cash dividend at Rs. 5/- per share i.e. 50%.
This is in addition to interim Dividend(s) already paid at Rs. 7/- per share i.e. 70%.
Going by the income statement, the bank witnessed an increase of 2x in its net interest income (NII) to stand at Rs154.7bn, compared to Rs77.24bn in SPLY. The surge in NII is due to a jump in interest-earning (Rs303.9bn), up by 97.38% YoY.
During the period under review, the bank’s total other income increased by 3.81% YoY to Rs16.49bn, owing to a significant rise in Foreign Exchange Income to clock in at Rs13.82bn, depicting an increase of 30.13 YoY.
Moreover, MEBL incurred a loss on securities also reduced from Rs866.97 million in 9MCY23, against a gain of Rs27.32m in 9MCY22.
In addition, the bank incurred a provision reversal of Rs4.42bn during the review period compared to the reversal of Rs1.74bn in the corresponding period last year.
On the expense side, the bank’s total other expenses increased by 48.73% to Rs51.34bn in 9MCY23 compared to Rs34.52bn in 9MCY22.
The increase was attributed to the jump of 46.86% YoY in the operating expenses from Rs33.18bn in 9MCY22 to Rs48.72bn in 9MCY23.
Similarly, MEBL’s expenses towards the Workers' welfare fund and other charges also went up during the review period.
On the tax front, the bank paid Rs57.02bn, 2.04x higher than the amount paid in 9MCY22.
| Consolidated Profit and Loss Account for the nine months ended September 30, 2023 ('000 Rupees) | |||
|---|---|---|---|
| Sep-23 | Sep-22 | % Change | |
| Profit/return earned on Islamic financing and related assets. Investments and placements | 303,901,959 | 153,971,541 | 97.38% |
| Profits on deposits and other dues expensed | 149,198,197 | 76,735,665 | 94.43% |
| Net spread earned | 154,703,762 | 77,235,876 | 100.30% |
| OTHER INCOME | – | ||
| Fee and commission income | 13,820,110 | 10,620,348 | 30.13% |
| Dividend income | 440,773 | 421,564 | 4.56% |
| Foreign exchange income | 2,116,102 | 3,866,649 | -45.27% |
| (Loss) / gain on securities-net | (866,972) | 27,320 | – |
| Other income | 982,871 | 951,235 | 3.33% |
| Total other income | 16,492,884 | 15,887,116 | 3.81% |
| Total income | 171,196,646 | 93,122,992 | 83.84% |
| – | |||
| OTHER EXPENSES | – | ||
| Operating expenses | 48,724,859 | 33,177,242 | 46.86% |
| Workers' Welfare Fund | 2,562,585 | 1,255,173 | 104.16% |
| Other charges | 55,825 | 89,024 | -37.29% |
| Total other expenses | 51,343,269 | 34,521,439 | 48.73% |
| 119,853,377 | 58,601,553 | 104.52% | |
| Share of results of associates before taxation | 490,821 | (130,129) | -477.18% |
| Profit before provisions | 120,344,198 | 58,471,424 | 105.82% |
| Provisions and write-offs -net | 4,416,289 | 1,735,254 | 154.50% |
| Extraordinary / unusual items | – | – | – |
| Profit before taxation | 115,927,909 | 56,736,170 | 104.33% |
| Taxation | 57,020,524 | 27,979,938 | 103.79% |
| Profit after taxation | 58,907,385 | 28,756,232 | 104.85% |
| Basic and diluted earnings per share (Rupees) | 32.72 | 15.99 | – |
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Posted on: 2023-10-19T15:20:13+05:00
