{"id":5114,"date":"2024-05-16T15:15:57","date_gmt":"2024-05-16T10:15:57","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=5114"},"modified":"2024-05-17T18:12:08","modified_gmt":"2024-05-17T13:12:08","slug":"snippets-from-mebl-q1-cy24-earnings-call","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/snippets-from-mebl-q1-cy24-earnings-call\/","title":{"rendered":"Snippets from MEBL Q1 CY24 earnings call"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">MEBL Highlights and Future Outlook<\/h2>\n\n\n\n<p><a href=\"https:\/\/ksestocks.com\/blog\/tag\/mebl\/\" target=\"_blank\" rel=\"noopener\" title=\"MEBL\">Meezan Bank Limited (MEBL)<\/a> held its conference call to discuss its first-quarter results for CY24 and outline its future outlook.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Earnings Per Share (EPS) Surge<\/strong>: MEBL reported an unconsolidated EPS of PKR 14.2, marking a significant <strong>65%<\/strong> year-over-year (YoY) increase. Alongside this, the bank announced an interim cash dividend of <strong>PKR 7.0 per share<\/strong>.<\/li>\n\n\n\n<li><strong>Strong Growth in Spread Earned<\/strong>: The bank&#8217;s spread earned increased by <strong>65%<\/strong> YoY to <strong>PKR 67.6 billion<\/strong> in Q1CY24, driving a <strong>45%<\/strong> YoY surge in profits to <strong>PKR 119.2 billion<\/strong>. This growth was attributed to higher underlying policy rates and increased volume of earning assets.<\/li>\n\n\n\n<li><strong>Non-Funded Income Growth<\/strong>: Non-funded income grew by <strong>64%<\/strong> YoY to <strong>PKR 6.4 billion, <\/strong>mainly fueled by fee &amp; commission income and the<strong> <\/strong>absence of forex and capital losses.<\/li>\n\n\n\n<li><strong>Debit Card Expansion<\/strong>: MEBL added over 240,000 debit cards in Q1CY24, bringing the total portfolio to 3.4 million. Debit card spending increased by <strong>43% <\/strong>YoY to <strong>PKR 71 billion<\/strong> during the quarter.<\/li>\n\n\n\n<li><strong>Improvement in Foreign Exchange Income<\/strong>: The bank earned P<strong>KR 478 million<\/strong> in foreign exchange income in Q1CY24, a significant improvement from a loss of <strong>PKR 155 million<\/strong> in Q1CY23.<\/li>\n\n\n\n<li><strong>Operational Expenses<\/strong>: Operating expenses rose to <strong>PKR 21.2 billion<\/strong> in Q1CY24, up<strong> 42%<\/strong> YoY, driven by inflationary pressures and IT-related expenses.<\/li>\n\n\n\n<li><strong>Investment Portfolio Growth<\/strong>: MEBL&#8217;s investment portfolio expanded to <strong>PKR 1.6 trillion<\/strong> due to regular Sukuk auctions, easing liquidity concerns for Islamic banks.<\/li>\n\n\n\n<li><strong>Asset Quality and Capital Adequacy<\/strong>: Despite a decline in Advances-to-Deposits Ratio (ADR) to<strong> 41%<\/strong>, MEBL&#8217;s Capital Adequacy Ratio (CAR) reached an all-time high of <strong>24.1%<\/strong> in Mar-24, well above regulatory requirements.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Financial Highlights and Ratios<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Key Financial Ratios<\/h3>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Ratio<\/th><th class=\"has-text-align-left\" data-align=\"left\">CY21A<\/th><th class=\"has-text-align-left\" data-align=\"left\">CY22A<\/th><th class=\"has-text-align-left\" data-align=\"left\">CY23A<\/th><th class=\"has-text-align-left\" data-align=\"left\">CY24E<\/th><th class=\"has-text-align-left\" data-align=\"left\">CY25F<\/th><th class=\"has-text-align-left\" data-align=\"left\">CY26F<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">EPS<\/td><td class=\"has-text-align-left\" data-align=\"left\">17.4<\/td><td class=\"has-text-align-left\" data-align=\"left\">25.1<\/td><td class=\"has-text-align-left\" data-align=\"left\">47.2<\/td><td class=\"has-text-align-left\" data-align=\"left\">54.2<\/td><td class=\"has-text-align-left\" data-align=\"left\">47.2<\/td><td class=\"has-text-align-left\" data-align=\"left\">46.2<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">EPS Growth<\/td><td class=\"has-text-align-left\" data-align=\"left\">11.2%<\/td><td class=\"has-text-align-left\" data-align=\"left\">44.2%<\/td><td class=\"has-text-align-left\" data-align=\"left\">87.7%<\/td><td class=\"has-text-align-left\" data-align=\"left\">14.9%<\/td><td class=\"has-text-align-left\" data-align=\"left\">-12.9%<\/td><td class=\"has-text-align-left\" data-align=\"left\">-2.1%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">DPS<\/td><td class=\"has-text-align-left\" data-align=\"left\">5.6<\/td><td class=\"has-text-align-left\" data-align=\"left\">8.2<\/td><td class=\"has-text-align-left\" data-align=\"left\">20.0<\/td><td class=\"has-text-align-left\" data-align=\"left\">26.8<\/td><td class=\"has-text-align-left\" data-align=\"left\">27.5<\/td><td class=\"has-text-align-left\" data-align=\"left\">27.8<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">BVPS<\/td><td class=\"has-text-align-left\" data-align=\"left\">48.3<\/td><td class=\"has-text-align-left\" data-align=\"left\">64.4<\/td><td class=\"has-text-align-left\" data-align=\"left\">103.2<\/td><td class=\"has-text-align-left\" data-align=\"left\">129.1<\/td><td class=\"has-text-align-left\" data-align=\"left\">149.3<\/td><td class=\"has-text-align-left\" data-align=\"left\">167.5<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">PER<\/td><td class=\"has-text-align-left\" data-align=\"left\">12.6<\/td><td class=\"has-text-align-left\" data-align=\"left\">8.7<\/td><td class=\"has-text-align-left\" data-align=\"left\">4.7<\/td><td class=\"has-text-align-left\" data-align=\"left\">4.1<\/td><td class=\"has-text-align-left\" data-align=\"left\">4.6<\/td><td class=\"has-text-align-left\" data-align=\"left\">4.8<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Dividend Yield<\/td><td class=\"has-text-align-left\" data-align=\"left\">2.6%<\/td><td class=\"has-text-align-left\" data-align=\"left\">3.7%<\/td><td class=\"has-text-align-left\" data-align=\"left\">9.1%<\/td><td class=\"has-text-align-left\" data-align=\"left\">12.2%<\/td><td class=\"has-text-align-left\" data-align=\"left\">12.5%<\/td><td class=\"has-text-align-left\" data-align=\"left\">12.6%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">P\/B<\/td><td class=\"has-text-align-left\" data-align=\"left\">4.5<\/td><td class=\"has-text-align-left\" data-align=\"left\">3.4<\/td><td class=\"has-text-align-left\" data-align=\"left\">2.1<\/td><td class=\"has-text-align-left\" data-align=\"left\">1.7<\/td><td class=\"has-text-align-left\" data-align=\"left\">1.5<\/td><td class=\"has-text-align-left\" data-align=\"left\">1.3<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">ROE<\/td><td class=\"has-text-align-left\" data-align=\"left\">38.8%<\/td><td class=\"has-text-align-left\" data-align=\"left\">45.4%<\/td><td class=\"has-text-align-left\" data-align=\"left\">58.3%<\/td><td class=\"has-text-align-left\" data-align=\"left\">49.3%<\/td><td class=\"has-text-align-left\" data-align=\"left\">35.6%<\/td><td class=\"has-text-align-left\" data-align=\"left\">30.5%<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\"><strong>Source<\/strong>: <em>Company Accounts, Akseer Research<\/em><\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Income Statement (PKR Million)<\/h3>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Item<\/th><th class=\"has-text-align-left\" data-align=\"left\">CY21A<\/th><th class=\"has-text-align-left\" data-align=\"left\">CY22A<\/th><th class=\"has-text-align-left\" data-align=\"left\">CY23A<\/th><th class=\"has-text-align-left\" data-align=\"left\">CY24E<\/th><th class=\"has-text-align-left\" data-align=\"left\">CY25F<\/th><th class=\"has-text-align-left\" data-align=\"left\">CY26F<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">Mark-up\/interest earned<\/td><td class=\"has-text-align-left\" data-align=\"left\">110,073<\/td><td class=\"has-text-align-left\" data-align=\"left\">232,121<\/td><td class=\"has-text-align-left\" data-align=\"left\">431,722<\/td><td class=\"has-text-align-left\" data-align=\"left\">459,415<\/td><td class=\"has-text-align-left\" data-align=\"left\">421,150<\/td><td class=\"has-text-align-left\" data-align=\"left\">412,390<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Mark-up\/interest expensed<\/td><td class=\"has-text-align-left\" data-align=\"left\">41,151<\/td><td class=\"has-text-align-left\" data-align=\"left\">110,418<\/td><td class=\"has-text-align-left\" data-align=\"left\">205,293<\/td><td class=\"has-text-align-left\" data-align=\"left\">208,170<\/td><td class=\"has-text-align-left\" data-align=\"left\">173,230<\/td><td class=\"has-text-align-left\" data-align=\"left\">142,749<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Net interest income<\/td><td class=\"has-text-align-left\" data-align=\"left\">68,921<\/td><td class=\"has-text-align-left\" data-align=\"left\">121,704<\/td><td class=\"has-text-align-left\" data-align=\"left\">226,429<\/td><td class=\"has-text-align-left\" data-align=\"left\">251,245<\/td><td class=\"has-text-align-left\" data-align=\"left\">247,920<\/td><td class=\"has-text-align-left\" data-align=\"left\">269,641<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Non-interest income<\/td><td class=\"has-text-align-left\" data-align=\"left\">14,892<\/td><td class=\"has-text-align-left\" data-align=\"left\">19,103<\/td><td class=\"has-text-align-left\" data-align=\"left\">22,107<\/td><td class=\"has-text-align-left\" data-align=\"left\">28,189<\/td><td class=\"has-text-align-left\" data-align=\"left\">30,179<\/td><td class=\"has-text-align-left\" data-align=\"left\">31,617<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Provision charged<\/td><td class=\"has-text-align-left\" data-align=\"left\">993<\/td><td class=\"has-text-align-left\" data-align=\"left\">4,177<\/td><td class=\"has-text-align-left\" data-align=\"left\">7,340<\/td><td class=\"has-text-align-left\" data-align=\"left\">2,801<\/td><td class=\"has-text-align-left\" data-align=\"left\">3,665<\/td><td class=\"has-text-align-left\" data-align=\"left\">4,617<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Operating expenses<\/td><td class=\"has-text-align-left\" data-align=\"left\">35,324<\/td><td class=\"has-text-align-left\" data-align=\"left\">48,245<\/td><td class=\"has-text-align-left\" data-align=\"left\">71,788<\/td><td class=\"has-text-align-left\" data-align=\"left\">90,785<\/td><td class=\"has-text-align-left\" data-align=\"left\">100,897<\/td><td class=\"has-text-align-left\" data-align=\"left\">113,780<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Profit\/loss to shareholders<\/td><td class=\"has-text-align-left\" data-align=\"left\">28,355<\/td><td class=\"has-text-align-left\" data-align=\"left\">45,007<\/td><td class=\"has-text-align-left\" data-align=\"left\">84,476<\/td><td class=\"has-text-align-left\" data-align=\"left\">97,046<\/td><td class=\"has-text-align-left\" data-align=\"left\">84,548<\/td><td class=\"has-text-align-left\" data-align=\"left\">82,742<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\"><strong>Source<\/strong>: <em>Company Accounts, Akseer Research<\/em><\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Investment Thesis and Outlook<\/h3>\n\n\n\n<p>Akseer Research maintains a &#8216;Neutral&#8217; recommendation on <a href=\"https:\/\/ksestocks.com\/blog\/tag\/mebl\/\" target=\"_blank\" rel=\"noopener\" title=\"MEBL\">Meezan Bank Limited (MEBL) <\/a>with a price target of PKR 196 per share by December 2024, offering a potential downside of <strong>11%<\/strong> while providing a dividend yield of<strong> 12%<\/strong>. The investment case for MEBL is supported by the normalization of deposit growth and an anticipated decline in interest rates.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Disclaimer<\/h2>\n\n\n\n<p><em>The information in this article is based on research by Akseer Research. All efforts have been made to ensure the data represented in this article is as per the research report. This report should not be considered investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>MEBL reported an unconsolidated EPS of PKR 14.2, marking a significant 65% year-over-year<\/p>\n","protected":false},"author":8,"featured_media":4075,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[138],"tags":[28],"class_list":["post-5114","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financials","tag-mebl"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/04\/MEBL-Financials-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/04\/MEBL-Financials-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/04\/MEBL-Financials-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/04\/MEBL-Financials.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/5114","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=5114"}],"version-history":[{"count":0,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/5114\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/4075"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=5114"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=5114"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=5114"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}