Meezan Bank (MEBL) Q2 2024 earnings summary

Executive summary

• Profit after tax for HY 2024 rose 59% year-over-year to Rs 51.8 billion, driven by volumetric growth and higher benchmark rates, with basic EPS at Rs 28.89.

• Total assets grew 18% year-over-year to Rs 3.30 trillion, with investments and deposits as key contributors.

• Return on equity improved to 52.9%, and return on average assets surpassed 3%.

• Interim cash dividend of Rs 14.00 per share for H1 2024, with a 140% cash distribution.

• Maintained market leadership with a market capitalization of Rs 429 billion as of June 30, 2024.

Financial highlights

• Net spread earned increased 52% year-over-year to Rs 137.9 billion.

• Fee, commission, and other income grew 21% to Rs 10.1 billion; non-funded income up 30% to Rs 11.7 billion.

• Cost to income ratio improved to 29.0% from 31.5% year-over-year.

• Gross financings rose 10% to Rs 1.15 trillion; investments up 21% to Rs 1.64 trillion.

• Deposits increased 26% year-over-year to Rs 2.41 trillion, with CASA ratio at 90%.

Outlook and guidance

• Sustained profitability growth expected, supported by strong asset and deposit growth.

• Focus on balanced growth, sector diversification, and surpassing regulatory stability benchmarks.

• Digital expansion and product innovation remain strategic priorities.

• Continued expansion of both physical and digital channels, with emphasis on premier digital services.

• Aligned with government strategy for full transition to a Shariah-compliant financial system.