Meezan Bank Posts Highest-Ever Quarterly Profit of Rs. 26.7 Billion in 2Q 2024

Meezan Bank Limited (PSX: MEBL) has announced its 2QCY24 result today, where the bank recorded earnings of Rs. 26.7 billion, up 55 percent YoY and 5 percent QoQ. According to Topline Securities, this is the highest-ever quarterly earnings recorded in the bank’s history. This takes 1HCY24 earnings to Rs. 51.8 billion, up 59 percent YoY. Alongside the result, the bank also announced a second interim cash dividend of Rs. 7.0 per share in 2QCY24, taking 1HCY24 dividend to Rs. 14.0 per share. This strong profitability was led by growth in net spread earned which grew by 42 percent YoY and 4 percent QoQ to Rs. 70 billion in 2QCY24. This growth in the net spread was led by a rise in asset yields and growth in zero-cost current account deposits. MEBL recorded a provision reversal of Rs. 935 million in 2QCY24 compared to a provision expense of Rs. 1.5 billion in 2QCY23. Other income of the bank grew by 4 percent YoY while down by 16 percent QoQ in 2QCY24. Other expenses of the bank increased by 35 percent YoY and 4 percent QoQ to Rs. 21.2 billion which was driven by the bank’s growing branch network and inflationary pressures. Despite the increase in other expenses, the cost-to-income ratio of the bank improved to 29 percent in 2QCY24 as against 30 percent recorded in 2QCY23. The effective tax rate of banks clocked in at 51 percent in 2QCY24 vs. 53 percent in 2QCY23 and 52 percent in 1QCY24. MEBL posted earnings per share (EPS) of Rs. 14.88 for 2QCY24 and an EPS of Rs. 28.89 for 1HCY24. The bank’s scrip at the bourse closed at Rs. 241.96, up 0.03 percent or Rs. 0.07 with over 1 million shares on Thursday.