Meezan Bank’s solid performance in 2QCY24

Meezan Bank Limited (MEBL) has recently released its financial results for the second quarter of the calendar year 2024, showcasing a strong performance that aligns well with market expectations.

The bank reported an unconsolidated NPAT of PKR 26.6 billion, translating to an EPS of PKR 14.9.

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Key financial highlights

One of the most notable aspects of Meezan Bank’s performance is the net spread earned, which reached PKR 70.3 billion.

This marks a 4% increase quarter-on-quarter and a remarkable 42% increase compared to the same quarter last year.

The net interest margins for the quarter stood at approximately 10.38%, although this is a slight decrease of 11 basis points from the previous quarter.

In terms of other income, the bank experienced a quarterly dip of 16%, primarily driven by a 12% fall in fee and commission income during the period.

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Additionally, foreign exchange income was notably low, recorded at PKR 102 million—down 79% from the previous quarter.

However, the bank benefited from a provisioning reversal of PKR 935 million, which was 2.7 times higher than the previous quarter, providing some relief to the overall financial picture.

The cost-to-income ratio for MEBL remained stable at 29%, consistent with the previous quarter and the same quarter last year.

Non-markup expenses increased to PKR 22.1 billion, reflecting a 4% quarter-on-quarter rise and a 35% increase year-on-year.

The effective tax rate for the quarter was 51%, slightly lower than the previous quarter’s 52%.

Alongside these results, Meezan Bank announced a cash dividend of PKR 7 per share, bringing the total payout for the first half of 2024 to PKR 14 per share, compared to PKR 7 per share in the same period last year.

This dividend reflects a payout ratio of 47%, indicating the bank’s commitment to returning value to its shareholders.

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →