Karachi: Meezan Bank Limited has successfully transmitted its quarterly report for the period ended June 30, 2024, through PUCARS and made it accessible on the bank's website. The document outlines substantial financial achievements and a positive trajectory in Pakistan's economic landscape.
Meezan Bank, the leading Islamic bank in Pakistan, has disclosed its financial results for the first half of 2024, showcasing a significant profit surge. According to the unaudited financial statements, the bank's profit after tax climbed by 59%, reaching Rs 51.8 billion, up from Rs 32.6 billion in the corresponding period last year. This financial uplift translates into a basic earnings per share of Rs 28.89, an increase from Rs 18.21 previously. The bank's return on average equity exceeded 50%, emphasizing a robust financial stance, while its assets grew to Rs 3,296 billion, marking a 9% increase from the end of 2023.
The economic overview provided by the directors reveals that Pakistan's economy has shown signs of recovery in Fiscal Year 2024 after a contraction the previous year. GDP growth hit 2.4% thanks to various government initiatives, including fiscal consolidation and sustainable energy reforms. The average consumer price index remained around 26%, but inflation has seen a decline since February, leading the State Bank of Pakistan to reduce the policy rate to 19.50% by the end of July 2024. According to information available from the Pakistan Stock Exchange (PSX), the PSX-100 Index noted a remarkable growth, soaring by 26% to 78,444 points by June 2024.
The banking sector, including Meezan Bank, benefitted from these macroeconomic improvements, with Meezan Bank's market capitalization escalating to Rs 429 billion ($1.54 billion) by June 30, 2024. The report further highlights that the bank's total deposits grew by 9% to Rs 2.41 trillion, with a substantial increase in both current and savings accounts.
The directors also outlined Meezan Bank's strategic initiatives, such as expanding its branch network, which now comprises 1,010 branches across 335 cities. Additionally, the bank's digital and mobile banking services have significantly enhanced, supporting its leadership in digital transactions among retail customers.
In terms of regulatory and operational developments, the VIS Credit Rating Company Limited has reaffirmed Meezan Bank's credit rating at 'AAA' for the Long Term and 'A1+' for the Short Term, maintaining a stable outlook. The bank remains committed to supporting the national economy and enhancing the Islamic Banking sector in line with the Federal Shariat Court's directive for a full transition to Shariah-compliant financial systems.
Meezan Bank's management extends its gratitude to the State Bank of Pakistan, the Ministry of Finance, and its customers for their continued support, which has been pivotal in achieving these results.