Meezan Bank’s profit jumps nearly 124% in 1QFY24

Meezan Bank, the country’s largest Islamic bank, posted earnings of Rs25.99 billion for the first three months of fiscal 2023-24, up nearly 124% from the profit-after-tax Rs11.62 billion in the same period of the preceding year.

According to a notice sent to the Pakistan Stock Exchange (PSX) on Thursday, earnings per share clocked in at Rs14.42 for the three-month period.

The Board of Directors also announced an interim cash dividend for the quarter ended September 30, 2023 at Rs5 per share i.e. 50%. This is in addition to interim Dividend(s) already paid at Rs7 per share i.e. 70%.

The increase in profit was led by sharp spike in profit/return earned on Islamic financing and related assets, investments and placements.

The net profit/return rose from Rs31.75 billion in 1QFY23 to Rs64.08 billion in 1QFY24, a robust increase of nearly 102%.

The fee and commission income earned by the bank in 1QFY23 amounted to Rs5.21 billion, a surge of 37% against Rs3.8 billion earned in the same period last year.

However, the dividend income of the firm showed a decline of over 11% down from Rs128.5 million in 1QFY23 to Rs113.4 million in 1QFY24.

Meezan Bank’s foreign exchange income increased significantly by 83% from Rs734.7 million to Rs1.6 billion in 1QFY24.

Additional income earned by Meezan Bank also jumped by 115% as it increased to Rs411.5 million in 1QFY24 from Rs191.3 million in SPLY.

During 1QFY24, operating expenses of the firm amounted to Rs18.68 billion, up 50% against Rs12.44 billion in SPLY.

The firm reported a sharp hike in expenditure on worker welfare fund which almost doubled during the period. Meezan Bank spent Rs511.3 million under this head in 1QFY23 and Rs1.06 billion in 1QFY24.