Meezan Bank Limited (MEBL) announced on Thursday a profit of Rs6.8 billion for the quarter ended June 2021, up from Rs6.6 billion from the same three-month period of the previous year.

The bank posted a profit of Rs12.9 billion in the January-June period, which was 11.2% higher year-on-year. Accordingly, Earnings per share (EPS) stood at Rs4.72 for April-June, and at Rs9 for January-June of the ongoing calendar year.

It also declared an interim cash dividend of Rs1.50, taking overall payout to Rs3 per share this year so far.

Alongside the cash dividend, the bank also announced bonus shares' issue of 15%.

The result is in line with our estimates, said KASB Securities in a post-result announcement comment.

MCB’s profit after tax reported at Rs7.9 billion for April-June

It added that earnings remained better than expected, as Meezan Bank registered a strong growth in other income, as NFI increased by 77% YoY to Rs 3.2 billion in 2QCY21 as lockdown restrictions were eased off and economic activity picked up.

"Major support came from fee income that almost doubled clocking at Rs 2 billion as against Rs 1 billion.

"Meezan Bank’s operating expense increased by 11% YoY to Rs 8.7 billion in 2QCY21, “which we believe is because of addition of new branches,” said KASB.