Meezan Bank Limited (PSX: MEBL) has disclosed a robust financial performance for the quarter ending March 31st, 2024 (1Q2024), with a profit after tax (PAT) reaching Rs. 25 billion, marking a substantial 65 percent increase year-on-year (YoY).<\/p>\r\n\r\n\r\n\r\n
According to Arif Habib Limited, the bank’s earnings were propelled by a YoY uptick in income. However, a sequential comparison revealed a decline in income, which impacted overall profitability on a quarter-on-quarter (QoQ) basis.<\/p>\r\n\r\n\r\n\r\n
Accompanying the financial results, MEBL also announced a cash dividend of Rs. 7 per share.<\/p>\r\n\r\n\r\n\r\n
During the first quarter of CY24, the bank reported a net profit earned of Rs. 67.6 billion, indicating a noteworthy 65 percent YoY surge, albeit showing a 6 percent decline QoQ.<\/p>\r\n
While the profit saw a substantial 45 percent rise YoY, it experienced a 7 percent decrease QoQ. Concurrently, profit expenses increased by 26 percent YoY, while decreasing by 8 percent compared to the previous quarter.<\/p>\r\n\r\n\r\n\r\n
MEBL witnessed a 66 percent increase in Non-Funded Income YoY in the outgoing quarter, primarily driven by higher fee income, up by 46 percent YoY, and dividend income, which rose by 64 percent YoY. However, on a QoQ basis, Non-Funded Income was adversely affected by lower FX income, down by 51 percent QoQ, and a decrease in Gain on Securities by 64 percent QoQ.<\/p>\r\n\r\n\r\n\r\n
The bank recorded provisioning reversals amounting to Rs. 344 million in 1QCY24, a significant contrast to a charge of Rs. 2.1 billion in the same period last year and a charge of Rs. 2.9 billion in the previous quarter.<\/p>\r\n\r\n\r\n\r\n
Operating expenses (OPEX) witnessed a jump of 45 percent YoY and 2 percent QoQ in 1QCY24, reaching Rs. 21.9 billion. Consequently, the Cost\/income ratio stood at 29.3 percent for 1QCY24, down from 33.4 percent in the same period last year.<\/p>\r\n\r\n\r\n\r\n