Meezan Bank, the country’s largest Islamic bank, posted consolidated earnings of Rs25.54 billion for the first quarter of calendar year 2024, up nearly 65% from the profit-after-tax Rs15.53 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 Rs14.19 for the quarter, as compared to Rs8.63 in 1QCY23.

The Board of Directors also announced an interim cash dividend for the quarter ended March 31, 2024 at Rs7 per share i.e. 70%.

“The result came in line with market expectations,” said Topline Securities in a note.

A sharp 45% year-on-year spike led the increase in profit in profit/return earned on Islamic financing and related assets, investments and placements.

Meezan Bank’s profit up nearly 91% in 2023

The net profit/return rose from Rs41.07 billion in 1QCY23 to Rs67.56 billion in 1QCY24, a robust increase of nearly 65%. Meezan’s profit margin in 1QCY24 stood at 56.7%, higher than 50.09% to the same period last year.

The fee and commission income earned by the bank in 1QCY24 clocked in at Rs5.91 billion, a surge of 46% against Rs4.04 billion earned in the same period last year.

However, foreign exchange income of the firm stood at Rs477.93 million in 1QCY24, as compared to a loss of Rs155.04 million in SPLY.

Resultantly, the total income earned by Meezan Bank jumped nearly 65% as it increased to Rs74.52 billion in 1QCY24 from Rs45.26 billion in 1QCY23.

During CY23, the firm’s operating expenses rose to Rs20.6 billion, up 42% against Rs14.5 billion in SPLY.

The firm reported a sharp hike in expenditure on worker welfare fund which almost doubled during the period. Meezan Bank spent Rs1.13 billion under this head in 1QCY24 and Rs595.8 million in 1QCY23.

During 1QCY24, the bank paid Rs27.84 billion in taxes, up over 122%, as compared to Rs12.5 billion in 1QCY23.