MEBL Q3 earnings miss expectations

MG News | October 21, 2024 at 12:06 PM GMT+05:00

0:00

October 21, 2024 (MLN): Meezan Bank Limited's (PSX: MEBL) earnings for the quarter ended September 2024 fell short of market expectations.

The company reported a profit after tax worth Rs25.77 billion, which translates to earnings per share of Rs14.36 against the market's average forecast of Rs15.98.

The dividend payout of Rs7 per share met the median expectations.

Earnings were just 1.27% higher than last year's period when the company recorded a profit after tax of Rs25.45bn [EPS: Rs14.21].

The constrained profit growth is attributed to an increase in provisioning which surged to Rs2.57bn during the quarter from Rs781.83m in SPLY.

Going by the income statement, the bank's net return earned on Islamic financing and related assets sustained its climb and rose to Rs78.86bn in Q3 CY24, reflecting a gain of 19.96% compared to SPLY.

Likewise, the bank's non-markup income increased 5.4% to Rs6.53bn in Q3 CY24.

The rise in non-markup income comes due to improved and expanded economic activity and customer base in the country.

Consequently, both fee and commission income and dividend income grew.

Another crucial point to highlight was the turnaround in its securities income, which recorded a positive Rs167.9m compared to a loss of Rs526.27m in Q3 CY23.

On the expense side, the total non-markup expenses increased by 18.83% YoY to Rs23.18bn in Q3 CY24.

The increase was attributed to a substantial rise in the bank’s operating expenses.

On the tax front, the bank paid Rs31.86bn, around 30% higher than the amount paid in Q3 CY23.

Unonsolidated Profit and Loss Account for the quarter ended September 30, 2024 ('000 Rupees)
	Sep-24	Sep-23	% Change
Profit/return earned on islamic financing and related assets. Investments and placements	128,506,227	120,831,793	6.35%
Profits on deposits and other dues expensed	51,649,917	56,764,877	-9.01%
Net spread earned	76,856,310	64,066,916	19.96%
OTHER INCOME			-
Fee and commission income	5,891,413	4,603,452	27.98%
Dividend income	150,473	129,467	16.22%
Foreign exchnage income	28,341	1,575,301	-98.20%
(Loss) / gain on securities-net	167,907	-526,272	-
Other income	288,837	410,794	-29.69%
Total other income	6,526,971	6,192,742	5.40%
Total income	83,383,281	70,259,658	18.68%
OTHER EXPENSES			-
Operating expenses	21,677,110	18,453,489	17.47%
Workers' Welfare Fund	1,207,524	1,050,119	14.99%
Other charges	294,958	3,545	8220.39%
Total other expenses	23,179,592	19,507,153	18.83%
Profit before provisions	60,203,689	50,752,505	18.62%
Provisions and write offs -net	2,572,228	781,825	229.00%
Extraordinary / unusual items	-	-	-
Profit before taxation	57,631,461	49,970,680	15.33%
Taxation	31,857,983	24,519,266	29.93%
Profit after taxation	25,773,478	25,451,414	1.27%
Basic earnings per share (Rupees)	14.36	14.21	-

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