KARACHI: Meezan Bank Limited on Thursday declared 36 per cent increase in after tax profit for the half year ended June 30, 2022.
The bank announced its financial results for the first half (January – June) 2022 where the bank reported consolidated net profit after tax of Rs17.1 billion compared to Rs12.7 billion in the same half of the last year.
Analysts at AKD Securities said that the results came in above the expectations on account of higher than anticipated non funded income.
Along with the result, the bank announced a dividend per share of Rs1.75 and a bonus of 10 per cent.
The bank’s core income increased by 46 per cent year on year (YoY) during the period under review. The growth can be explained by robust book growth as well as better asset pricing.
The non core income grew by 47 per cent YoY during the same period to Rs11.1 billion owing to phenomenal growth in foreign exchange income. Other notable contribution came from fee income which increased to Rs6.8 billion, up 40 per cent YoY.
The bank recorded provisioning cost of Rs961 million, which contained the profitability growth somewhat. This took the total provisioning cost during the first half of the year 2022 to Rs1.2 billion, up 2.7x.
Administrative expenses grew by 25.8 per cent year on year during the first half of the year 2022, which took the bank’s cost-to-income ratio during the period to 40 per cent as opposed to 45 per cent it clocked during same period last year.
Effective taxation during the quarter clocked in at 57.5 per cent, which took the effective taxation during the period of January – June 2022 to 49.3 per cent. The effective taxation was lower than the estimate and was the key reason behind the earnings surprise.