Meezan Bank Reports Strong Financial Performance in Q1 2024

Meezan Bank, the largest Islamic bank in Pakistan, has announced its financial results for the first quarter of the calendar year 2024, showcasing a remarkable performance. The bank's consolidated earnings surged to Rs25.54 billion, marking a substantial increase of nearly 65% from the same period last year. This growth translated into an earnings per share of Rs14.19 for the quarter, a significant rise from Rs8.63 in the first quarter of 2023.

The Board of Directors declared an interim cash dividend of Rs7 per share, reflecting a 70% payout. Market analysts noted that the bank's results met expectations, attributing the boost in profit to a 45% year-on-year increase in profit/return earned on Islamic financing, investments, and placements. Meezan Bank's net profit/return soared from Rs41.07 billion in 1QCY23 to Rs67.56 billion in 1QCY24, indicating a robust growth rate of nearly 65%.

The bank's profit margin for the first quarter of 2024 stood at 56.7%, surpassing the figure of 50.09% from the corresponding period last year. Additionally, Meezan Bank witnessed a substantial surge in fee and commission income, reaching Rs5.91 billion, a 46% increase compared to the previous year. Notably, the bank's foreign exchange income turned positive, recording Rs477.93 million in 1QCY24, in contrast to a loss of Rs155.04 million in the same period last year.

Overall, Meezan Bank's total income for the first quarter of 2024 surged by nearly 65%, reaching Rs74.52 billion, up from Rs45.26 billion in 1QCY23. However, the bank experienced a rise in operating expenses, which climbed to Rs20.6 billion, marking a 42% increase from the previous year. The bank's expenditure on worker welfare fund nearly doubled during the period, with expenses amounting to Rs1.13 billion in 1QCY24 compared to Rs595.8 million in 1QCY23.

Moreover, Meezan Bank's tax payments also witnessed a substantial uptick, with the bank paying Rs27.84 billion in taxes during the first quarter of 2024, reflecting a significant increase of over 122% from the same period last year.

Meezan Bank's strong financial performance in the first quarter of 2024 underscores its robust growth trajectory and solid operational efficiency. The bank's impressive earnings, dividend declaration, and strategic financial management reflect its resilience and competitiveness in the Islamic banking sector.