Meezan Bank’s profit up nearly 91% in 2023

Meezan Bank, the country’s largest Islamic bank, posted earnings of Rs86.02 billion for calendar year 2023, up nearly 91% from the profit-after-tax Rs45.14 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 Rs47.66 for the year, as compared to Rs25.1 in 2022, on a consolidated basis.

The Board of Directors also announced a final cash dividend for year 2023 at Rs8 per share i.e. 80%. This is in addition to interim dividend already paid at Rs12 per share i.e. 120%.

The increase in profit was led by a sharp 86% year-on-year spike in profit/return earned on Islamic financing and related assets, investments and placements.

The net profit/return rose from Rs121.82 billion in 2022 to Rs226.49 billion in 2023, a robust increase of nearly 86%. Meezan’s profit margin in CY23 stood at 52.4%, similar to the previous year.

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

The fee and commission income earned by the bank in 2023 amounted to Rs19.64 billion, a surge of 33% against Rs14.73 billion earned in the same period last year.

However, the foreign exchange income of the firm showed a marginal decline of nearly 14% down from Rs3.6 billion in 2023 to Rs3.1 billion in 2023.

Resultantly, the total income earned by Meezan Bank jumped over 76% as it increased to Rs250.47 billion in 2023 from Rs141.93 billion in 2022.

During CY23, operating expenses of the firm amounted to Rs68.77 billion, up 47% against Rs46.84 billion in SPLY.

The firm reported a sharp hike in expenditure on worker welfare fund which almost doubled during the period. Meezan Bank spent Rs1.93 billion under this head in 2022 and Rs3.65 billion in 2023.

During CY23, the bank paid Rs86.04 billion in taxes, up over 97%, as compared to Rs45.14 billion in CY22.