Meezan Bank (MEBL) has reported an all-time high profit of Rs. 101.5 billion for the year 2024, reflecting a 20% year-on-year (YoY) increase. The earnings per share (EPS) stood at Rs. 56.5, cementing its position as a leading player in the banking sector.
Q4 2024 Performance
Despite the strong annual performance, Meezan Bank’s fourth-quarter earnings stood at Rs. 23.9 billion (EPS: Rs. 13.36), marking a 9% decline YoY and a 7% drop quarter-on-quarter (QoQ). The decline is attributed to higher provisions under the IFRS-9 implementation and an increasing tax burden.
Record Dividend Payout
Alongside its financial results, the bank announced a historic dividend payout of Rs. 28 per share for 2024. This includes a fourth interim cash dividend of Rs. 7.0 per share, further strengthening investor confidence.
Key Financial Highlights
- Net Spread Earnings: Increased 1% YoY to Rs. 72 billion in Q4 2024, driven by higher asset yields and growth in current account deposits. However, it saw a 6% QoQ decline.
- Provision Expense: Increased to Rs. 7.3 billion in Q4 2024, compared to Rs. 2.5 billion in Q3 2024 and Rs. 2.9 billion in Q4 2023 due to regulatory changes.
- Other Income: Declined 7% YoY, but showed a 4% QoQ growth in Q4 2024.
- Operating Expenses: Increased by 22% QoQ and 14% YoY, driven by branch expansion and inflation.
- Tax Rate: The effective tax rate for Meezan Bank stood at 54% for 2024, reaching 58% in Q4 2024.
Market Position & Investment Outlook
Meezan Bank is currently considered a top pick in the banking sector. With a price-to-earnings (PE) ratio of 5.6x for 2025 and a price-to-book value (PBV) of 1.5x, the bank presents an attractive dividend yield of 10.1%.
For further financial insights, visit Pakistan Stock Exchange (PSX).
