Meezan Bank’s profit jumps 92% in 6MCY23

Meezan Bank posted earnings of Rs32.91 billion for the first six months of year 2023, up 92% from the profit-after-tax Rs17.14 billion in the same period of the preceding year.

According to a notice sent to the Pakistan Stock Exchange (PSX), earnings per share clocked in at Rs18.30 for the six-month period. The Board of Directors also announced a cash dividend for the half year ended June 30, 2023 at Rs4 per share i.e. 40%.

This is in addition to interim dividend already paid at Rs3 per share i.e. 30%.

The increase in profit was led by sharp spike in profit/return earned on Islamic financing and related assets, investments and placements.

The net profit/return rose from Rs45.48 billion in 6MCY22 to Rs90.62 billion in 6MCY23, a robust increase of over 99%.

The fee and commission income earned by the bank in 6MCY23 amounted to Rs8.6 billion, a surge of 26% against Rs6.8 billion earned in the same period last year.

The dividend income of the firm inched up from Rs293.1 million in 6MCY22 to Rs327.3 million in 6MCY23.

Meezan Bank’s foreign exchange income declined significantly by 83% from Rs3.13 billion to Rs540.8 million in 6MCY23.

The other income earned by Meezan Bank also dropped by 25% as it reduced to Rs571.37 million in 6MCY23 from Rs759 million in SPLY.

During 6MCY23, operating expenses of the firm amounted to Rs30.04 billion, up 46% against Rs20.74 billion in SPLY.

The firm reported a sharp hike in expenditure on worker welfare fund which almost doubled during the period. Meezan Bank spent Rs743.9 million under this head in 6MCY22 and Rs1.5 billion in 6MCY23.