Meezan Bank Limited (MEBL) has announced its financial results for the third quarter of the calendar year 2024, reporting earnings of Rs. 26.2 billion, translating to an earnings per share (EPS) of PKR 14.6. This marks a 1% year-on-year (YoY) increase. For the nine months ending September 2024, total profit reached Rs. 78.3 billion, reflecting a robust 34% YoY growth.
The bank attributed the rise in earnings primarily to a significant jump in total income according to a report by Arif Habib Ltd. A cash dividend of PKR 7 per share was also announced, bringing the total payout for the nine months to PKR 21 per share.
- Profit Performance: The bank’s profit for 3QCY24 was Rs. 128.5 billion, up 6% YoY, despite a 1% QoQ decline. Net profit for the quarter was Rs. 76.9 billion, a 20% YoY and 9% QoQ increase.
- Non-Funded Income: There was a 6% YoY decline in non-funded income for 3QCY24, totaling Rs. 20.6 billion for the nine months, a 25% YoY increase. This was driven by a 33% YoY rise in fee income and increased dividend income.
- Operational Expenses: Operating expenses rose by 19% YoY and 4% QoQ, reaching Rs. 23.6 billion in 3QCY24. The cost-to-income ratio stood at 28.3%.
- Taxation and Provisions: The effective tax rate increased to 55.0% from 48.8% YoY, likely due to ADR-related incremental taxes. Provisions for the quarter were Rs. 2.6 billion.
- Dividend and ADR: The bank’s Gross Advance-to-Deposit Ratio (ADR) was 44% as of 3QCY24
