KARACHI: Meezan Bank (MEBL) recorded a profit after tax of Rs22.042 billion (EPS of Rs12.28) in the first quarter of this year (CY25) compared to Rs 24.942 billion in same period of last fiscal year (2024), down 11.6 percent.
According to Topline, the earnings came in line with industry expectations. Alongside the result, the bank also announced first interim cash dividend of Rs7.0 per share in 1Q2025.
Net spread earned by MEBL fell by 8 percent YoY and 15 percent QoQ to Rs62 billion in 1Q2025. This decline in spread is due to a decrease in interest rates, along with the imposition of the Minimum Deposit Rate (MDR) on the individual portfolio.
MEBL recorded provision expense of Rs1.85 billion in 1Q2025 as compared Rs263 million in 1Q2024 and Rs7.3 billion in 4Q2024.
However, other income of the bank increased by 29 percent YoY to Rs8.2 billion. The YoY uptick is due to increase in Fees & Commission income by 10 percent YoY to Rs5.5 billion and FX Income by 3.3x to Rs1.6 billion in 1Q2025.
Other expenses of the bank declined by 7percent YoY while up 9percent QoQ to Rs19.6 billion in 1Q2025, driven by the expanding branch network and the impact of inflation.
Effective tax rate of bank clocked in at 55percent in 1Q2025 compared to 52percent in 1Q2024 and 58percent in 4Q2024.On balance sheet side, Deposits grew by 11percent QoQ to Rs2.9 trillion, Investments up by 10percent QoQ to Rs2.1 trillion, while advances down by 8percent QoQ to Rs1.4 trillion in 1Q2025.
Copyright Business Recorder, 2025
Comments
Comments are closed for this article.