Meezan Bank (PSX: MEBL) reported a stellar first quarter (Q1) of 2024, boasting a remarkable 65% year-over-year (YoY) surge in profit after tax (PAT) to Rs. 25 billion. This impressive performance reflects the bank’s strong market position.
While YoY income growth fueled strong earnings, a slight decline was observed sequentially (QoQ). To reward shareholders for the success, MEBL declared a cash dividend of Rs. 7 per share.
Meezan Bank’s Q1 2024 Net Profit Earned stood at Rs. 67.6 billion, representing a significant 65% YoY growth but a 6% decrease QoQ. Profit witnessed a similar trend, rising 45% YoY but dipping 7% QoQ.
Non-Funded Income displayed a robust 66% YoY increase, driven primarily by a 46% YoY jump in Fee income and a 64% YoY rise in dividend income. However, QoQ, Non-Funded Income declined due to a 51% decrease in FX income and a 64% drop in Gain on Securities.
A noteworthy shift occurred in provisioning, with Q1 2024 showing reversals of Rs. 344 million compared to charges of Rs. 2.1 billion and Rs. 2.9 billion in the same period last year and the previous quarter, respectively.
Operating expenses (OPEX) increased by 45% YoY and 2% QoQ, reaching Rs. 21.9 billion for Q1 2024. Despite the rise, the Cost/income ratio improved to 29.3% for Q1 2024, down from 33.4% in the same period last year.
The bank’s effective tax rate climbed to 52% in Q1 2024, compared to 45% in the same period last year.
Meezan Bank’s earnings per share (EPS) reached Rs. 14.19 for Q1 2024, a significant improvement from Rs. 8.63 in the same period last year.
In the latest trading session, the bank’s stock closed at Rs. 219, reflecting a 4.61% or Rs. 10.59 decline with a turnover of 5.2 million shares on Thursday.