Meezan Bank, Pakistan’s biggest full-fledged Islamic Bank, continued its profitable journey this year as it made a double-digit growth of 13 percent in the first quarter of 2017, at times when big banks like United Bank Limited (UBL) failed to register any growth in profit.
The bank closed 2016 with a profit of 11 percent (Rs 5.56 billion) and is showing sustainability in profit growth.
According to the financial results, the bank profit increased to Rs 1.511 billion in the first quarter (January to March) 2017 from the profit of Rs 1.33 billion that it recorded in the same period of last year.
The growth in profitability depicted the improved performance of bank with expansion in business and efficiency in operations.
The bank witnessed growth in spread income which increased to Rs 4.68 billion in the said period as compared to Rs 4.40 billion last year, showing a growth of 6.5 percent.
Its sources of other income also made a healthy contribution towards its profitability and grew to Rs 6.39 billion in Q 1 of 2017 from Rs 5.73 billion in the same period of last year, registering an increase of 11.5 percent.
The other income heads include gain on sale of securities, fee commission and brokerage income, income in dealing foreign currencies.
The bank expense also grew by 10 percent to stand at Rs 4.06 billion compared with Rs 3.67 billion recorded in last year.
Meezan is one of the more active banks which participate in financing of different projects through Sukuk. The bank is working with government for facilitating Hajj pilgrimage. It has been active in consumer financing and schemes including PM Youth Loan Scheme as well.