KARACHI: Meezan Bank Limited has reported a significant increase in its net profit, reaching Rs 12.6 billion for the first half of the calendar year 2021 (January–June). This reflects an 8% growth compared to the Rs 11.7 billion net profit recorded during the same period last year, according to the bank’s financial results announced on Thursday.
The bank’s earnings per share (EPS) rose to Rs 8.91 from Rs 8.25 in June 2020, highlighting strong financial performance. Meezan Bank’s Board of Directors, chaired by Riyadh S.A. A. Edrees, approved the financial statements during a meeting on Thursday, with Vice Chairman Faisal A. A. A. Al-Nassar also present.
The board approved a second interim cash dividend of Rs 1.50 per share (15%), bringing the total cash dividend for the first half to Rs 3.00 per share (30%), along with a 15% bonus share issue.
Meezan Bank has shown robust growth in deposits, which rose by 9% to Rs 1.37 trillion compared to the same period last year. The bank expanded its network by adding 20 new branches, reaching a total of 835 branches across 258 cities, along with 917 ATMs nationwide. Its Mobile Banking App continues to rank as the No. 1 banking app in Pakistan on both Apple and Google Play stores, offering unparalleled digital banking services.
The VIS Credit Rating Company Limited recently upgraded Meezan Bank’s credit rating to ‘AAA / A-1+’, the highest possible level, reflecting its exceptional credit quality with negligible risk factors.
While the bank’s net spread dropped by 4% to Rs 31.2 billion, due to a reduction in the State Bank of Pakistan (SBP) policy rate, the impact was mitigated by increased volumes of earning assets and a 45% surge in current account deposits, which grew to Rs 576 billion in June 2021, up from Rs 397 billion in June 2020.
Meezan Bank’s non-funded income surged by 36%, reaching Rs 6.81 billion, driven by higher trade finance, branch banking, and debit card fee income. The bank’s total assets increased to Rs 1.67 trillion, while its financing portfolio grew by 11% to Rs 570 billion.
As part of its corporate responsibility, Meezan Bank established Pakistan’s largest drive-through COVID-19 vaccination center in Karachi, vaccinating 1,200 individuals daily. It was also recognized by the Prime Minister as the ‘Best Performing Bank’ under the Roshan Digital Account initiative. Meezan Bank remains a leader in innovation and sustainability within Pakistan’s banking sector.