Karachi October 22 2024: Meezan Bank, the largest Islamic Bank of Pakistan and the most valuable bank at Pakistan Stock Exchange, profit surged by 33.6 percent to PKR 77.5 billion during the first 9 Months of this year, according to bank filing to the exchange.
The Bank posted a Profit After Tax (PAT) of PKR 77.5 billion, with Return on Average Equity (ROAE) exceeded 50% – reflecting the Bank’s steadfast commitment to enhancing shareholder value.
Concurrently, basic Earnings Per Share (EPS) also demonstrated a notable 33.6% growth relative to September, 2023. The Board approved a cash dividend of PKR 7 (70%) per share for the third quarter bringing the total dividend payout to PKR 21 (210%) for the first nine months.
The Bank maintains a strong capital position with a Capital Adequacy Ratio of 22.68%, well above the regulatory minimum requirement of 11.50%. Additionally, Meezan Bank remains the Most Valuable Bank in Pakistan with market capitalization of USD 1.6 billion.
The net spread of the Bank increased to PKR 214.7 billion, up from PKR 154.6 billion in the same period last year, owing to both expanded volumes and higher average benchmark rates. Additionally, non-funded income reached PKR 18.2 billion compared to PKR 15.2 billion during the corresponding period last year. This increase was driven by substantial rise in debit card transactions, branch banking activities, and trade-related income.
“MEBL Net Spread has peaked out and is expected to gradually decline due to declining yields. MEBL is anticipated to experience the sharpest decline in NIMs due to wide spreads. However, low cost deposits and efficient operations will continue to deliver still strong results” states Maaz Azam Analyst at Optimus Capital in its research report.
