Pakistan’s largest Islamic bank, Meezan Bank, has announced its annual earnings for 2024, crossing a critical Rs100 billion profit milestone despite facing a challenging environment marked by new, heavy-handed taxes on the banking sector. The bank reported annual earnings of Rs101.5 billion, up 20% year-on-year (YoY), underscoring its robust performance and resilient business model amid economic headwinds.
Meezan Bank’s annual profit surge is a significant achievement in a fiscal year where banks have been grappling with a slew of new taxes imposed by the government. Despite these pressures, the bank’s earnings for 2024 reached Rs101.5 billion, translating to an earnings per share (EPS) of Rs56.5. This 20% YoY increase reflects strong underlying fundamentals and an ability to navigate a tougher operating environment—an encouraging signal for investors and stakeholders alike.
The milestone of surpassing Rs100 billion in profits highlights the bank’s market-leading position in Pakistan’s Islamic banking sector. It comes at a time when economic recovery signals and improved consumer sentiment are beginning to reverse the tide of challenges faced by the broader financial industry. Meezan Bank’s performance has not only defied the odds set by onerous tax policies but has also set the stage for further growth, driven by its sound risk management practices and strategic expansion initiatives.
While the annual performance tells a story of unrelenting growth, the fourth quarter (4Q2024) results painted a more nuanced picture. The bank recorded earnings of Rs23.9 billion in Q4, corresponding to an EPS of Rs13.36. This figure represents a contraction of 9% YoY and 7% quarter-on-quarter (QoQ), a slowdown that has raised some eyebrows in the market.
Analysts, however, caution against reading too much into the fourth quarter dip. The slight contraction is seen by many as a temporary bump in an otherwise impressive growth trajectory. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
