Meezan Bank Posts Massive Rs. 78.3 Billion Profit For 9 Months of 2024

Meezan Bank Limited (PSX: MEBL) reported its 9MCY24 earnings at Rs. 78.3 billion, marking a 34 percent YoY increase. For 3QCY24, total earnings amounted to Rs. 26.2 billion (EPS: Rs. 14.6), depicting an increase of 1 percent YoY while down by 2 percent QoQ. The rise in earnings on a YoY basis is fueled by a jump in total income, according to Arif Habib Limited. The bank also announced a cash dividend of Rs. 7/share in 3QCY24 along with the result taking the total payout for 9MCY24 to Rs. 21.0/share. Profit earned by the bank settled at Rs. 128.5 billion during 3QCY24, up by 6 percent YoY | -1 percent QoQ while profit expensed was down by 9 percent YoY | 14 percent QoQ reaching Rs. 163 billion in 9MCY24. With this, the Net Profit earned by the bank clocked in at Rs. 76.9 billion in 3QCY24, up by 20 percent YoY | 9 percent QoQ (9MCY24: Rs. 214.8 billion, +39 percent YoY). The bank’s Non-Funded Income declined by 6 percent YoY during 3QCY24, bringing the total for 9MCY24 to Rs. 20.6 billion, a 25 percent YoY increase. The increase is primarily fueled by a 33 percent YoY rise in fee income, reaching Rs. 18.3 billion, and a boost in dividend income, which climbed to Rs. 488 million from Rs. 441 billion in the same period last year. Furthermore, the bank posted a gain of Rs. 283 million from the sale of securities, compared to a loss of Rs. 867 million in the same period last year. A provisioning charge was recorded in the outgoing quarter, settling at Rs. 2.6 billion, this took the provisioning charge for the 9MCY24 to Rs. 1.9 billion compared to a provisioning charge during 9MCY23 of Rs. 4.4 billion. The bank’s OPEX increased by 19 percent YoY | 4 percent QoQ in 3QCY24 clocking in at Rs. 23.6 billion. With this, Cost/Income stood at 28.3 percent in 3QCY24 against 27.9 percent SPLY. The effective tax rate for 3QCY24 rose to 55.0 percent, compared to 48.8 percent during the same period last year, indicating that the bank has likely incurred ADR-related incremental taxes. To highlight, the bank’s Gross Advance-to-Deposit Ratio (ADR) stood at 44 percent as of 3QCY24.