Meezan Bank Limited, Pakistan’s largest Islamic bank, has announced a robust 68% increase in profit for the first quarter ended March 31, 2023, despite the economic challenges faced by the country.
The bank reported an after-tax profit of Rs15.53 billion, compared to Rs9.24 billion in the same period last year.
Pakistan is currently facing a severe economic crisis due to a lack of resources and high inflation. The country is borrowing heavily from domestic banks due to disappointments from the external front.
Meezan Bank’s strong growth in profit can be attributed to a sharp increase in net return of 91%. The net profit/return of the bank jumped to Rs41 billion during January – March 2023 as compared with Rs21.49 billion in the same period of the last year.
The bank’s fee and commission income also rose to Rs4 billion for the quarter under review as compared with Rs3.35 billion in the same quarter of the last year. However, the bank registered an exchange loss of Rs155 million in the first quarter of 2023 as compared with Rs813 million in the last year.
Operating expenses of the bank grew to Rs14.52 billion as compared with Rs10.22 billion. Meanwhile, total expenses of the bank during the first quarter of 2023 recorded at Rs30 billion when compared with Rs15.44 billion in the same period of the last year.
The high profitability of the bank resulted in the sharp increase in tax liability to Rs12.51 billion during January – March 2023 compared to Rs6 billion in the same period of the last year.
The board of directors of the bank has recommended an interim cash dividend of Rs3 per share, which is 30% of the total.
Overall, Meezan Bank’s strong financial performance in the first quarter of 2023 is a positive development in Pakistan’s challenging economic environment.
