February 15, 2024 (MLN): Meezan Bank Limited (PSX: MEBL) marked its most profitable year in 2023, achieving a profit of Rs58.91 billion [EPS: Rs47.72] by the end of the review period.
This reflects a growth of over 90% YoY compared to the bank’s reported earnings of Rs45.14bn [EPS: Rs25.11] recorded in the Same Period Last Year (SPLY),
To reward shareholders for this remarkable performance, the Board of Directors (BoD) of the bank has declared a final cash dividend of Rs8 per share i.e. 80%.
This is in addition to interim dividend(s) already paid at Rs12 per share i.e. 120 %.
Going by the income statement, the bank witnessed an increase of 85.93% YoY in its net spread earned to stand at Rs226.49bn, compared to Rs121.82bn in SPLY.
The surge in profit is attributed to an identical jump in profit earned on Islamic financing and related assets, investments, and placements (Rs431.82bn) in 2023.
Further contributing to the bank’s profits, the total other income increased by 19.19% YoY to Rs23.97bn, owing to a significant rise in Foreign Exchange Income to clock in at Rs19.64bn, up by 33.13% YoY.
On the expense side, the bank’s total other expenses expanded by 48.84% YoY to Rs72.73bn in 2023 compared to Rs48.86bn in 2022.
The increase was associated with a growth in operating expenses that were recorded at Rs68.77bn in 2023.
Similarly, MEBL’s expenses towards the Workers' welfare fund and other charges also went up during the review period.
Moving forward, MEBL’s result further shows that its share from associates converted to a profit of Rs1.67bn in 2023, in contrast to a loss of Rs87.37m in 2022.
In addition, the bank incurred a provision reversal of Rs7.34bn during the review period compared to the reversal of Rs4.18bn in the corresponding period last year.
On the tax front, the bank paid Rs86.04bn, 97.06% YoY higher than the amount paid in 9MCY22.
| Consolidated Profit and Loss Account for the year ended December 31, 2023 ('000 Rupees) | |||
|---|---|---|---|
| Dec-23 | Dec-22 | % Change | |
| Profit/return earned on islamic financing and related assets. Investments and placements | 431,820,608 | 232,245,452 | 85.93% |
| Profits on deposits and other dues expensed | 205,327,453 | 110,426,062 | 85.94% |
| Net spread earned | 226,493,155 | 121,819,390 | 85.93% |
| OTHER INCOME | – | ||
| Fee and commission income | 19,636,228 | 14,729,321 | 33.31% |
| Dividend income | 635,019 | 629,478 | 0.88% |
| Foreign exchnage income | 3,094,654 | 3,617,274 | -14.45% |
| (Loss) / gain on securities-net | -697,998 | -100,184 | – |
| Other income | 1,306,765 | 1,238,374 | 5.52% |
| Total other income | 23,974,668 | 20,114,263 | 19.19% |
| Total income | 250,467,823 | 141,933,653 | 76.47% |
| OTHER EXPENSES | – | ||
| Operating expenses | 68,771,751 | 46,841,953 | 46.82% |
| Workers' Welfare Fund | 3,655,940 | 1,927,520 | 89.67% |
| Other charges | 304,830 | 95,150 | 220.37% |
| Total other expenses | 72,732,521 | 48,864,623 | 48.84% |
| Share of results of associates before taxation | 1,671,989 | -87,366 | -2013.78% |
| Profit before provisions | 179,407,291 | 92,981,664 | 92.95% |
| Provisions and write-offs -net | 7,340,411 | 4,176,661 | 75.75% |
| Extraordinary/unusual items | – | – | – |
| Profit before taxation | 172,066,880 | 88,805,003 | 93.76% |
| Taxation | 86,043,744 | 43,663,751 | 97.06% |
| Profit after taxation | 86,023,136 | 45,141,252 | 90.56% |
| Basic earnings per share (Rupees) | 47.72 | 25.11 | – |
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Posted on: 2024-02-15T13:06:03+05:00
