Meezan Bank announces 26% growth in annual profit

Meezan Bank announces 26% growth in annual profit

KARACHI: Meezan Bank Limited (MEBL) on Monday announced 26 per cent growth in profit for the year 2021.

The bank declared Rs28.23 billion profit after tax for the year 2021, showing 26 per cent growth when compared with Rs22.24 billion in the preceding year.

The bank announced Rs17.35 as earnings per share (EPS) for the year ended December 31, 2021 as compared with EPS of Rs13.77 in the preceding year.

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Analysts at Arif Habib Limited said that earnings posted a sequential uptick led by higher net spread earned, higher non-fee income (NFI) and lower provisioning.

The bank also announced a final dividend per share of Rs1.50 taking total payout to Rs6.00 for full year. To recall, the bank also announced 15 per cent bonus issue in the first half, the analysts added.

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Net Spread earned by the bank settled at Rs68.9 billion, marking an uptick of 6 per cent YoY, on the back of improved interest income and lower interest expense. Sequentially the net spread was up 18 per cent on quarter on quarter (QoQ).

NFI of the bank posted a healthy surge of 44 per cent on a yearly basis led by impressive increase in the Fee Income by 58 per cent YoY. Dividend income and foreign exchange income too posted a jump of 91 per cent YoY and 45 per cent YoY, respectively. On QoQ basis, NFI increased by 18 per cent.

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The bank’s provisioning expenses were significantly down during the year declining 88 per cent YoY to settle at Rs993 million during CY21.

Operating expenses for the bank is up 19 per cent YoY / 10 per cent QoQ. Cost/Income ratio clocked in at 42 per cent during CY21 against 40 per cent SPLY. Effective tax rate settled at 40.6 per cent during CY21.

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