Meezan Bank’s profit up nearly 55% in 2QCY24

Meezan Bank, the country’s largest Islamic bank, posted consolidated earnings of Rs26.89 billion for the second quarter that ended June 30, 2024, up nearly 55% from the profit-after-tax Rs17.39 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 (EPS) clocked in at Rs14.90 for the period, as compared to Rs9.66 in 2QCY23.

The Board of Directors also announced a cash dividend for the half year ended June 30, 20234 at Rs7 per share i.e. 70%. This is in addition to the interim dividend already paid at Rs7 per share i.e. 70%.

The increase in profit was led by a significant 29% year-on-year spike in profit/return earned on Islamic financing and related assets, investments and placements.

The net profit/return rose from Rs49.53 billion in 2QCY23 to Rs70.33 billion in 2QCY24, a robust increase of nearly 42%. Meezan’s profit margin in 2QCY24 stood at 54%, higher than the previous year.

Meezan Bank’s profit up nearly 91% in 2023

The fee and commission income earned by the bank during the period amounted to Rs4.42 billion, an increase of over 5% against Rs4.19 billion earned in the same period last year.

However, the foreign exchange income of the firm showed a significant decline of 85% from Rs695.8 million in 2QCY23 to Rs101.6 million in 2QCY24.

Resultantly, the total income earned by Meezan Bank jumped over 38% as it increased to Rs75.65 billion in 2QCY24 from Rs54.64 billion in 2QCY23.

During 2QCY24, the operating expenses of the firm amounted to Rs21.1 billion, up 36% against Rs15.44 billion in SPLY.

The firm spent Rs1.1 billion on worker welfare fund in 2QCY24, which is nearly 24% higher than Rs895.5 million spent under this head in SPLY.

During 2QCY24, the bank paid Rs27.77 billion in taxes, up nearly 42%, as compared to Rs19.58 billion in 2QCY23.