Karachi: Meezan Bank Limited (MEBL) announced its financial results for the second quarter of the calendar year 2024 today, posting an unconsolidated net profit after tax (NPAT) of PKR 26.6 billion, with earnings per share (EPS) at PKR 14.9. The results, aligning with market expectations, were accompanied by a consistent quarterly dividend payout of PKR 7 per share.

According to AKD Securities Limited, the bank’s net spread earned during the quarter was PKR 70.3 billion, reflecting a 4% quarter-over-quarter and a 42% year-over-year increase. Despite a slight decline in net interest margins (NIMs), down 11 basis points quarter-over-quarter to approximately 10.38%, the bank demonstrated resilience in its core operations. Other income for the bank decreased by 16% quarter-over-quarter, primarily due to a 12% drop in fee and commission income and a significant 79% reduction in foreign exchange income. However, the bank benefitted from a provisioning reversal of PKR 935 million during the quarter, substantially higher than the previous quarter.

The bank maintained a cost-to-income ratio of 29%, consistent with the first quarter of 2024 and slightly lower year-over-year. The effective tax rate for the quarter stood at 51%, indicating a stable fiscal cost relative to previous periods.