Karachi, February 13, 2025 – Meezan Bank Limited has reported an impressive 20% increase in its annual profit after tax for the fiscal year ending December 31, 2024.
This significant growth underscores the bank’s robust financial performance and its sustained leadership in Pakistan’s Islamic banking sector.
According to the financial results disclosed to the Pakistan Stock Exchange (PSX), Meezan Bank posted a profit of Rs 101.51 billion for 2024, a substantial rise from Rs 84.48 billion recorded in the preceding year. This growth highlights the bank’s strategic initiatives and operational efficiencies.
A commentary released by Topline Securities Limited noted that Meezan Bank registered earnings of Rs 23.9 billion in the fourth quarter of 2024, translating into an earnings per share (EPS) of Rs 13.36. However, this quarterly performance reflects a 9% decline year-on-year (YoY) and a 7% drop quarter-on-quarter (QoQ).
In conjunction with these results, Meezan Bank declared a fourth interim cash dividend of Rs 7.0 per share, bringing the total dividend payout for 2024 to Rs 28.0 per share. This announcement aligns with market expectations and demonstrates the bank’s commitment to rewarding its shareholders.
The bank’s provisions surged in the fourth quarter, with a recorded expense of Rs 7.3 billion, up from Rs 2.5 billion in the third quarter of 2024 and Rs 2.9 billion in the same period last year. This increase is attributed to the adoption of IFRS-9, which has necessitated more stringent provisioning standards.
Meezan Bank’s effective tax rate stood at 58% in the fourth quarter and averaged 54% for the entire year. Despite these challenges, the bank’s net spread earnings grew by 1% YoY, reaching Rs 72 billion in 4Q2024. This growth was driven by higher asset yields, a favorable asset repricing gap, and an increase in zero-cost current account deposits.
The bank’s non-interest income declined by 7% YoY but saw a 4% QoQ increase, while operating expenses rose by 22% QoQ and 14% YoY, primarily due to network expansion and inflationary pressures.
Meezan Bank’s consistent performance reflects its strategic vision, operational resilience, and unwavering commitment to Islamic banking principles. The bank remains poised to continue its growth trajectory in the coming years.