Meezan Bank Limited has announced its highest-ever quarterly earnings, recording a remarkable profit of Rs. 26.7 billion for the second quarter of the calendar year 2024 (2QCY24). This represents a substantial 55% increase year-on-year (YoY) and a 5% rise quarter-on-quarter (QoQ). The bank’s strong financial performance is a testament to its resilience and ability to navigate challenging economic conditions.
The cumulative earnings for the first half of the calendar year 2024 (1HCY24) have reached an impressive Rs. 51.8 billion, reflecting a 59% YoY growth. To reward shareholders, Meezan Bank has declared a second interim cash dividend of Rs. 7.0 per share for 2QCY24, bringing the total dividend for 1HCY24 to Rs. 14.0 per share.
The bank’s robust profitability was primarily driven by a significant increase in net spread earnings, which rose by 42% YoY to Rs. 70 billion in 2QCY24. This growth was fueled by higher asset yields and an increase in zero-cost current account deposits.
Meezan Bank also benefited from a provision reversal of Rs. 935 million in 2QCY24, compared to a provision expense of Rs. 1.5 billion in the corresponding quarter last year. While other income grew by 4% YoY, it declined by 16% QoQ.
Despite a rise in other expenses due to the bank’s expanding branch network and inflationary pressures, the cost-to-income ratio improved to 29% in 2QCY24. The effective tax rate for the quarter was recorded at 51%.
Meezan Bank’s earnings per share (EPS) for 2QCY24 stood at Rs. 14.88, bringing the EPS for 1HCY24 to Rs. 28.89. On the Pakistan Stock Exchange (PSX), Meezan Bank’s share price closed at Rs. 241.96 on Thursday, registering a slight increase.