Meezan Bank witnessed a staggering growth in profitability leaving behind big conventional banks by a wide margin, becoming the most profitable bank in the country.
The leading Islamic bank has reported a profit of Rs. 17.1 billion in the first half of 2022 up by 36 percent.
According to the financial results announced by Meezan Bank, the leading Islamic bank grew its profit by Rs. 4.5 billion from the last year which stood at Rs. 12.6 billion in the first half of 2021.
The profit reported by Habib Bank Limited stood at Rs. 12.1 billion and United Bank Limited at Rs. 11.8 billion by the end of the same period. The difference in probability among these banks clearly indicated that HBL and UBL made huge tax payments to the government as compared to Meezan Bank in the said period.
The results of MCB Bank and National Bank of Pakistan (NBP) have yet to be announced however these banks could also surprise the banking industry with their financial results.
The Bank’s net spread grew by 46% to Rs 45.4 billion from Rs 31.2 billion in the corresponding period last year, primarily due to volumetric growth in earning assets and a higher average underlying policy rate during the half year.
The Bank was able to manage its tax charge efficiently by maintaining an ADR of over 50% and accordingly, did not attract any additional tax charge relating to ADR below 50%.
Total deposits of the Bank closed at Rs 1.57 trillion – an 8% growth over last year. During the half year, the Bank opened 29 new branches, bringing its geographical network to 931 branches in more than 300 cities.
The Bank’s non-funded income also recorded a growth of 57% closing at Rs 10.7 billion as compared to Rs. 6.8 billion in the corresponding period last year mainly due to debit card-related fee income, higher trade-related income, and branch banking income.
Total assets of the Bank crossed Rs 2.4 trillion, registering a 27% growth (Rs 514 billion), over December 2021 (Rs 1.9 trillion). The Bank’s non-performing financing ratio remained at an exemplary level of 1.7%. The Bank maintains a comfortable level of provisions against its non-performing financings with a coverage ratio of 139% – one of the highest in the banking industry.
The Investments portfolio of the Bank doubled, growing to Rs 1.2 trillion from Rs 620 billion last year after the investment of more than Rs. 600 billion in GoP Ijarah Sukuk. During the half year, the Bank made an additional general provision of Rs. 750 million against any potential non-performing financings in view of the current ongoing economic slowdown.
The bank’s earnings per share surged to Rs. 10.52 from Rs. 7.75. The board announced a dividend of Rs. 1.75 per share in addition to Rs. 1.75 dividends already paid to the shareholders.
Like in the first quarter, Meezan Bank stood in third place with Rs. 9.2 billion. UBL stood in second place with Rs. 9.2 billion and the National Bank of Pakistan (NBP) became the most profitable bank with a profit of Rs. 9.8 billion. The fall of MCB Bank and HBL to fourth and fifth place was a big surprise to the banking industry
Still behind HBL look at their stupid interest rates 6%/year lol. HBL has better than meezan
But operation staff behaviour not with costumers. That is revised this thing every branch.not