Meezan Bank Limited (MEBL) has posted the highest ever profit after tax (PAT) of Rs. 45 billion in 2022 (CY22), up 59 percent compared to PAT of Rs. 28.2 billion reported in the previous year i.e. 2021 (CY21).
The bank announced its financial results for the year ended December 31, 2022, on Thursday. The bank reported earnings per share (EPS) of Rs. 25.11 in CY22 compared to EPS of 15.77 reported in CY21.
The bank’s total income for CY22 stood at Rs. 141.93 billion, up 67 percent compared to the total income of Rs. 84.8 billion reported in CY21. The bank’s operating expense (OPEX) stood at Rs. 48.86 billion in CY22, up 36 percent compared to OPEX of Rs. 35.9 billion reported in CY21.
The bank’s profit before tax stood at Rs. 88.80 billion in CY22, registering a massive growth of 85 percent compared to profit before tax of Rs. 47.97 billion reported in CY21. The taxation also increased by 124 percent during CY22 compared to CY21 and stood at Rs. 43.66 billion.
Q4 Performance
The bank posted a PAT of Rs. 16.3 billion in 4QCY22, up 93 percent compared to the same quarter of the previous year. The jump in overall earnings was mainly on the back of higher net interest income. Moreover, the bank announced a dividend of Rs. 3 along with 4Q results, taking the full year’s payout to Rs. 8.5 per share.
Net Interest Income (NII) of the bank settled at Rs. 44.6 billion during 4QCY22, up 119 percent compared to the same period of the previous year. With this, the total NII for CY22 went up to Rs. 121.8 billion, marking a 77 percent jumpy compared to CY21. On the back of multiple hikes in the policy rate, the bank registered an increase of 111 percent in interest earnings while interest expense too witnessed a huge jump of 168 percent during CY22 compared to CY21.
The bank’s NFI depicted a decrease of 7 percent over the previous year, clocking in at Rs. 4.2 billion during 4QCY22. With this CY22’s NFI stood at Rs. 20.1 billion, marking an increase of 26 percent over CY21. This was mainly on the back of a 36 percent increase in fee and commission income a 15 percent increase in FX income over the previous year.
The bank’s OPEX during 4QCY22 clocked in at Rs. 14.3 billion. With this, cost/income stood at 29.4 percent in 4QCY22 against 39.6 percent in the same period last year. The effective tax rate was set at 49 percent during 4QCY22 compared to 42 percent during the same period of the previous year.
So the investors will also get the sharia complaint more profit right? But to my surprise reality is different and bank still use Islam to shield them.