Karachi, February 13, 2025 — Meezan Bank Limited has announced a remarkable 20% growth in its annual profit after tax for the fiscal year ending December 31, 2024. The bank reported a profit of Rs 101.51 billion for 2024, marking a significant increase from Rs 84.48 billion in the previous year. This strong performance underscores Meezan Bank’s continued dominance and leadership in Pakistan’s rapidly expanding Islamic banking sector.
The bank’s financial results, disclosed to the Pakistan Stock Exchange (PSX), reflect its commitment to strategic growth and operational excellence. The 20% year-on-year (YoY) increase in profit highlights the success of the bank’s ongoing efforts to streamline its operations, optimize its financial services, and leverage the growing demand for Islamic banking solutions in Pakistan.
Meezan Bank’s impressive fourth-quarter earnings also contributed to its strong overall results. The bank reported a quarterly profit of Rs 23.9 billion, with earnings per share (EPS) of Rs 13.36. However, despite the robust figure, the bank experienced a 9% decline in YoY profit and a 7% drop in quarter-on-quarter (QoQ) performance. These declines were attributed to various factors, including increased provisions and adjustments linked to new accounting standards.
In line with its positive annual performance, Meezan Bank declared a fourth interim cash dividend of Rs 7.0 per share, contributing to a total dividend payout of Rs 28.0 per share for the year. This dividend announcement aligns with the market’s expectations and reinforces the bank’s commitment to delivering value to its shareholders.
A notable development in the bank’s performance during the fourth quarter was the significant increase in provisions. Meezan Bank recorded a provisioning expense of Rs 7.3 billion, up from Rs 2.5 billion in Q3 2024 and Rs 2.9 billion in the same period the previous year. This surge is largely due to the adoption of International Financial Reporting Standard 9 (IFRS-9), which has led to more stringent provisioning requirements. While this impacted the bank’s quarterly performance, it demonstrates the bank’s compliance with international accounting standards and its commitment to maintaining strong financial health.
Despite challenges in provisions, Meezan Bank’s net spread earnings showed a modest increase of 1% YoY, reaching Rs 72 billion in the fourth quarter of 2024. This was driven by higher asset yields, a favorable asset repricing gap, and an increase in zero-cost current account deposits. The bank’s ability to maintain a steady rise in net spread earnings demonstrates the resilience of its core business model and operational efficiency.
On the flip side, the bank faced some headwinds with non-interest income, which declined by 7% YoY, although it saw a 4% QoQ increase. Operating expenses also rose by 22% QoQ and 14% YoY, largely due to inflationary pressures and the bank’s expansion of its network.
Meezan Bank’s consistent financial performance reflects its strategic vision, commitment to Islamic banking principles, and operational resilience. With its solid financial foundation, the bank is well-positioned to continue its growth trajectory and maintain its market-leading position in the coming years. The bank’s strong results for 2024 further bolster its standing as one of the most trusted and progressive financial institutions in Pakistan’s banking landscape.
As the demand for Shariah-compliant financial products continues to rise, Meezan Bank’s ability to adapt to market trends and deliver robust financial outcomes demonstrates its enduring leadership in the Islamic banking sector. The bank’s strategic initiatives, efficient operations, and unwavering focus on customer satisfaction are expected to drive its continued success in 2025 and beyond.