Meezan Bank witnessed a massive growth in profitability leaving behind big conventional banks by a wide margin, becoming the most profitable bank in the country.
The Board of Directors of Meezan Bank Limited (PSX: MEBL) has approved the financial statements of the bank for the half year ended June 30, 2023.
According to the financial results, the bank’s consolidated profit after tax increased to Rs. 32.7 billion from Rs. 17.05 billion in the same period last year, registering a staggering growth of 92 percent year-on-year (YoY). This is an all-time high profit made by the bank in 1HCY23, according to Arif Habib Limited.
The massive PAT during the period was driven by a substantial increase in topline (up 99 percent YoY).
Also, the basic earnings per share increased to Rs. 18.30 per share from Rs. 9.53 per share in 1HCY22. Alongside this impressive performance, MEBL distributed a dividend of Rs. 7 per share, marking its highest-ever dividend payout for the 1H in the bank’s history.
The bank’s total income for 1HCY23 stood at Rs. 100.3 billion, up 77 percent compared to the income of Rs. 56.6 billion reported in 1HCY22.
The bank’s profit before tax stood at Rs. 65.2 billion in H1 2023, registering a massive growth of 93 percent compared to the profit before tax of Rs. 33.8 billion reported in SPLY. The taxation also increased by 93.6 percent during 1HCY23 compared to SPLY and stood at Rs. 32.29 billion.
The bank posted a PAT of Rs. 17.29 billion in 2QCY23, up 120 percent compared to SPLY. Net Profit Earned (NPE) by the bank settled at Rs. 49.55 billion during 2QCY23, up 106 percent YoY and 21 percent QoQ. NFI depicted a decline of 16 percent YoY during 2QCY23 taking 1HCY23’s total to Rs. 9.7 billion (- 13 percent YoY). This drop in 1HCY23 is primarily due to a reduction in FX gains by 83 percent YoY to Rs. 541 million.
In addition, other income posted a decline of 25 percent YoY, clocking in at Rs. 571 million during 1HCY23. On the other hand, the bank recorded a jump in fee and commission income, which surged by 26 percent YoY to record Rs. 8.6 billion.
Provisioning for the bank clocked in at Rs. 1.5 billion during 2QCY23 (2QCY22: Rs. 961 million) depicting a jump of 56 percent on a YoY basis.
The effective tax rate was set at 53.2 percent during 2QCY23 compared to 57.5 percent SPLY.
the best bank meezan bank ltd. proud to be a shareholder of meezan bank ltd since its ipo.
Because Islamic bank pay lower profit rates on saving accounts, whereas conventional bank are compelled to pay higher profit ates under SBP regulations….since policy rate is very high therefore, Islamic banks are minting money…..
You are right. The public doesn’t understand the difference between interest and financial charge which is actually to compensate you for devaluation in the value of rupee due to inflation and USD.
Interest may be used for stable currency like USD but not PKR. Can they buy currently same thing at same price of last year without receiving financial interest. No, they cant. So How it is interest. The Gold never declines in value so interest on Gold can be a wrong thing but not on PKR. Islamic bank simply plays on religious sentiments.
Thats exactly how i argue with molvies. PKR is not 7th century dinar. Its is an inflationary currency. Even the interest is not enough to cover the losses due to devaluation and inflation.
The graphical presentation shows that Meezan had profitable income of 31.7B in 2006 and now in 2023 as 32.7B , as per inflation the profit is about 51 % lesser than 17 years back.
Review again.
Customer no need for your profit . We need your debit cards discounts only 1 bank HBL is very good discounts and list of discounts is many more
Meezan Bank takes all the profits to themaelces while giving a meagre %age 50 per cent of what other banks give to depositors in the name of sharia compliance. Their sharia is not harmed while keeping bigger chunk of saving for themswlves and bonusses for own employees using public dwposits.
The staff performing a long duty mostly from 0830 hrs to 2030 hrs UpTo 12 hrs daily but have no financial incentive, for example a cashier who after graduate join bank get 36000 salary. Whereas he is very responsible in his work and cannot leave bank till completion of his account statement. I request bank management to increase their pay scale that start from 16000
It has to be highest as Islamic banks give depositor around
10% whereas they park funds in govt sukuks and earn around 22%. This spead in not only unprecedented but also a sorry tale as depositors get peanuts.