Meezan Bank Limited (MEBL) has announced a net profit of PKR 103.7 billion ($370.3 million) for the year ended December 31, 2024, which is 20.6% higher than the profit of PKR 86.02 billion in the previous year. This increase is attributable to higher fee income coupled with elevated gains on securities.
The earnings per share (EPS) came in at PKR 57.28 for CY24 compared with PKR 47.72 in CY23. The result is above market expectations due to lower-than-estimated operating expenses and higher net spreads.
The company also declared a final cash dividend of PKR 7 per share, which is in addition to the interim dividend of PKR 21 already paid to shareholders.
The bank’s net income surged 26.7% to PKR 287 billion in the year compared with PKR 226.5 billion in the previous year. Operating expenses fell by 14% year-on-year, possibly attributable to some accounting adjustments.
The credit loss allowance came in significantly higher, clocking in at PKR 7.3 billion, possibly attributable to higher lending due to the ADR requirement.
Other income surged 33% to PKR 31.8 billion, primarily due to higher fee and commission income which posted a jump of 32% to PKR 25.8 billion. In addition, the bank posted a gain on securities of PKR 3.5 billion compared to a loss of PKR 698 million recorded in the previous year. However, MEBL’s forex income declined by 73% during the outgoing year.
An analyst at Arif Habib Limited said net advances surged by 58%, primarily driven by the bank’s focus on meeting the 50%+ ADR threshold, leading to an increase in ADR to 59%. Additionally, the bank achieved impressive deposit growth of 17%.
