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.

Source: Pro Pakistani