Meezan Bank’s profit after tax increased to Rs. 12.6 billion compared to Rs. 11.7 billion in the corresponding period last year, reflecting a growth of 8 percent. The EPS of the Bank, on enhanced share capital, increased to Rs. 8.91 per share from Rs. 8.25 per share in June 2020.
According to the financial results, the board approved the second interim cash dividend of Rs. 1.50 per share (15 percent). Further, the board has also approved a 15 percent bonus share issue. This brings the total cash dividend payout for the half-year to Rs. 3.00 (30 percent) per share, along with 15 percent bonus shares as Rs. 1.50 per share.
The bank registered healthy growth in revenues driven through the financing of businesses and margins from investments. The net spread earned by the biggest Islamic bank surged over Rs. 32 billion along with the earning margins of over Rs. 5 billion. The bank continued to mobilize deposits with an active role in financing businesses and investment in the government’s Sukuks.
The bank’s management has made two achievements by the end of June 30.
Meezan Bank made its highest ever quarterly profit of Rs. 6.5 billion during April and June 2021.
Meezan Bank has added another feather in its cap, being the top Bank in Pakistan in terms of market value terms. Its market capitalization (overall share value in PSX) crossed a mark of Rs. 200 billion, beating leading banks in the same field, including Habib Bank, United Bank, and MCB Bank.
The Bank is penetrating steadily in the largely untapped market with the continuous expansion of branches network, various products of financing for business and consumers (housing finance and auto finance), etc.
Total deposits of the Bank closed at Rs. 1.37 trillion – a growth of 9% from last year. During the half-year, the Bank opened 20 new branches, bringing its geographical network to 835 branches in 258 cities and a network of 917 ATMs (2020: 880 ATMs) across the country, which provides excellent client coverage to the bank in addition to its widespread geographical network.
The bank’s net spread dropped by 4 percent to Rs. 31.2 billion from Rs. 32.4 billion due to a decline in the underlying SBP policy rate, which reduced from an average of 11 percent in January-June 2020 to 7 percent during the current period.
Total assets of the bank grew to Rs. 1.67 trillion from Rs. 1.52 trillion in December 2020. The Bank’s financing portfolio grew by 11 percent to Rs. 570 billion from Rs. 513 billion in December 2020.