KARACHI, October 22 2024: Meezan Bank Limited (MEBL) released its financial results for the third quarter of 2024, reporting earnings of Rs25.8 billion, translating to an EPS of Rs14.4. This marks a 1% year-on-year (YoY) increase, though it reflects a 3% quarter-on-quarter (QoQ) decline. For the first nine months of 2024 (9M2024), the bank’s cumulative earnings rose by 34% YoY to Rs77.5 billion (EPS Rs43.3).
Alongside its earnings, MEBL announced a third interim cash dividend of Rs7.0 per share, bringing the total dividend for 9M2024 to Rs21.0 per share.
The 3Q2024 results came in slightly below market expectations due to increased provisions and tax expenses. The bank recorded a provision expense of Rs2.6 billion in 3Q2024, compared to a reversal of Rs935 million in 2Q2024 and a provision expense of Rs782 million in 3Q2023. The higher provision expense in the latest quarter is attributed to the implementation of IFRS-9.
Meezan Bank’s effective tax rate reached 55% in 3Q2024 and 53% for 9M2024, reflecting additional taxes related to its lower advances-to-deposits ratio (ADR), which declined to 40% in September 2024 from 48% in June 2024.
