Karachi, October 19, 2023 (PAKONOMY): Meezan Bank, the country’s largest Islamic bank, has reported a remarkable financial performance in the first quarter of fiscal year 2023-24. The bank’s earnings for this period have surged by nearly 124% compared to the same quarter of the previous year, with earnings of Rs25.99 billion, indicating a strong and robust start to the fiscal year.
The bank’s earnings per share (EPS) during these three months stood at an impressive Rs14.42, demonstrating the bank’s continued profitability and strong financial footing. This significant achievement is a testament to Meezan Bank’s commitment to excellence and financial success.
In addition to this remarkable financial performance, Meezan Bank’s Board of Directors has announced an interim cash dividend of Rs5 per share for the quarter ending on September 30, 2023. This dividend is equivalent to 50% of the share’s value, and it’s worth noting that it’s in addition to the interim dividends already paid, totaling Rs7 per share, or 70%.
The surge in profit can be attributed to several key factors:
A sharp increase in profit/return earned on Islamic financing and related assets, investments, and placements. The net profit/return rose from Rs31.75 billion in the first quarter of FY 2022-23 to a substantial Rs64.08 billion in the first quarter of FY 2023-24, marking a remarkable increase of nearly 102%.
The bank experienced significant growth in fee and commission income, which amounted to Rs5.21 billion in the first quarter of FY 2023-24, reflecting a substantial 37% increase compared to the Rs3.8 billion earned in the same period of the previous year.
While the dividend income of the bank showed a decline of over 11%, decreasing from Rs128.5 million in the first quarter of FY 2022-23 to Rs113.4 million in the first quarter of FY 2023-24, the overall financial performance remains robust.
Moreover, Meezan Bank’s foreign exchange income witnessed an 83% increase, rising from Rs734.7 million to an impressive Rs1.6 billion in the first quarter of FY 2023-24. This reflects the bank’s success in capitalizing on foreign exchange markets.
The bank’s additional income also experienced significant growth, increasing by a remarkable 115%. It reached Rs411.5 million in the first quarter of FY 2023-24, up from Rs191.3 million in the same period in the previous year. This substantial growth in additional income showcases the bank’s diversified revenue streams and financial resilience.
On the cost side, operating expenses for the bank during the first quarter of FY 2023-24 amounted to Rs18.68 billion, marking a 50% increase compared to the Rs12.44 billion in the same period of the previous year. Notably, the firm reported a significant surge in expenditure on worker welfare funds, with expenditures nearly doubling during this period. The bank spent Rs511.3 million in the first quarter of FY 2022-23 and Rs1.06 billion in the first quarter of FY 2023-24. These expenses reflect Meezan Bank’s commitment to employee welfare and corporate social responsibility.
Meezan Bank’s stellar financial performance in the first quarter of FY 2023-24 reflects its strong position in the market and its ability to adapt to the changing economic landscape. The bank’s focus on Islamic finance and diversified revenue streams has proven to be a successful strategy, leading to significant growth and profitability. With this outstanding start to the fiscal year, Meezan Bank continues to be a pillar of strength in Pakistan’s financial sector.