KARACHI: The total assets of Meezan Bank has crossed Rs 1 trillion mark by June 30, 2019, a statement said on Thursday.
The Board of Directors of Meezan Bank Limited in its meeting, held at Karachi on August 28, 2019 approved the condensed interim unconsolidated financial statements of the Bank and its consolidated financial statements for the half year ended June 30, 2019.
The meeting was presided by Riyadh S.A. A. Edrees – Chairman of the Board; Faisal A. A. A. Al – Nassar – Vice Chairman of the Board was also present.
The Bank continued its growth momentum and posted excellent results for the half year ended June 30, 2019. Total assets of the Bank crossed the Rs 1 trillion mark for the first time in its history while profit after tax for the half year crossed Rs7 billion – a growth of 70 percent from the comparative period last year.
The Earnings per Share (EPS) – on enhanced capital were Rs 5.44 per share. The Bank remains a well-capitalized institution with Capital Adequacy Ratio of 16.22 percent.
The board has approved 10 percent interim cash dividend (Rs 1.0 per share) for the second quarter of 2019, bringing the total dividend payout for the half year to Rs 2.0 per share (20 percent) as Re 1.0 per share i.e. 10 percent cash dividend along with 10 percent bonus shares were approved in the last board meeting.
The Bank has maintained an unbroken payout record since its listing on Stock Exchange in the year 2000. Deposits of the Bank grew by 7 percent to reach Rs 842 billion while its financing portfolio closed at Rs 484 billion with an ADR of 57 percent. The NPL ratio and NPL coverage ratio stood at 1.60 percent and 130 percent.
Total operating income of the Bank increased by 55 percent, primarily due to continuous focus on maintaining higher volume of earning assets portfolio and rise in the asset yields pursuant to increase in Target Rate.
The Bank’s return on deposits also recorded a twofold rise mainly due to increase in depositors’ profit rates and volumetric growth. Fees and commission income of the Bank grew by 26 percent primarily due to increase in the trade business volume handled by the Bank and other branch banking related income.
Operating expenses and other charges increased by 26 percent primarily due to devaluation of Pakistani Rupee and increase in costs associated with new branches – an investment in future.
The rise in expenses was sufficiently absorbed by the growth in the Bank’s income, resulting in improvement in income efficiency ratio by 11 percent. The Bank added 18 new branches to its network during the half year, bringing the total number of branches to 678 in 189 cities.
The VIS Credit Rating Company Limited (formerly JCR-VIS Credit Rating Company Limited), has reaffirmed the Bank’s Entity Rating of ‘AA+’ (Double A Plus) for the Long Term and ‘A1+’ (A-One Plus) for the Short Term with stable outlook. The VIS Credit Rating Company Limited has also reaffirmed the rating of Subordinated Tier II Sukuk and Additional Tier I Sukuk of the Bank at ‘AA’ (Double A) and ‘AA-’ (Double A Minus) respectively. These ratings indicate sound performance of the Bank.