Meezan Bank has unveiled its financial results for the third quarter ending in September 2023, demonstrating remarkable performance. The bank achieved its highest-ever quarterly earnings of Rs25 billion, translating to an impressive EPS of Rs14.2 during the July-September period.
This surge in earnings is attributed to record total income, with a substantial growth in earnings highlighted by brokerage house Arif Habib Limited. Year-on-year, the bank’s earnings more than doubled, and there was a significant 48% increase quarter-on-quarter during the same period. This exceptional performance led to cumulative nine-month earnings of Rs58 billion, with an EPS of Rs32.4, signifying a remarkable 103% year-on-year growth.
Meezan Bank declared a substantial interim cash dividend of Rs5 per share for the third quarter, resulting in a total dividend of Rs12 per share for the first nine months of the year.
The upsurge in earnings is primarily driven by an unexpectedly high net spread earned by the bank, as emphasized by Topline Securities. Notably, the bank’s profit expanded by 84% year-on-year, while the cost of deposits increased by 68% during the third quarter of 2023.
Additionally, the bank improved its cost-to-income ratio to 28% in the third quarter, demonstrating notable advancement from the previous periods. The effective tax rate remained stable at 49%, although it had decreased from the previous quarter due to the impact of the super tax imposed earlier.
Furthermore, the bank’s ‘other’ income experienced healthy growth, with significant increases in fee and commission income and foreign exchange income, contributing to the overall robust performance.
Despite the rise in other expenses attributed to the bank’s expanding branch network and inflationary pressures, Meezan Bank managed to deliver impressive financial results and maintain a strong position in the market.
