Meezan Bank, Pakistan’s largest Islamic bank, reported a profit of Rs26.36bn for the third quarter of 2024, according to a notice provided on the Pakistan Stock Exchange. This marks a modest increase of 1.4pc compared to Rs25.99bn in the same period last year.
The bank’s earnings per share (EPS) were recorded at Rs14.61, slightly up from Rs14.43 in Q3CY23. The Board of Directors also announced a cash dividend of Rs7 per share, adding to the interim dividend of Rs14 per share.
Meezan’s net profit from Islamic financing, investments, and placements surged by 19.9pc, reaching Rs76.85bn compared to Rs64.08bn in Q3CY23. This growth provided some relief as foreign exchange income saw a sharp decline.
The bank’s foreign exchange income dropped drastically by over 98pc falling from Rs1.58bn in the same period last year to just Rs29.1mn in Q3CY24. Despite this setback, Meezan managed to maintain profitability, driven by other income streams.
Fee and commission income grew by over 34pc, reaching Rs6.99bn in the quarter, up from Rs5.21bn last year. Operating expenses also rose by 18pc, totaling Rs22.03bn due to inflation and operational expansion.
Tax expenses for the quarter surged by 30pc, with Meezan paying Rs32.23bn in Q3CY24, compared to Rs24.73bn last year. This increase in taxation significantly impacted the bank’s overall profit growth.
Despite these challenges, Meezan Bank continued to strengthen its position in the market, supported by a strong performance in Islamic financing and increased fee-based services.
