Karachi, February 14, 2020: The Board of Directors of Meezan Bank Limited in its meeting, held
The meeting was presided by Mr. Riyadh S.A. A.
The Bank recorded excellent results for the year 2019. Profit after tax increased to Rs 15.23 billion compared to Rs 8.96 billion last year reflecting an impressive growth of 70% while EPS on enhanced capital, increased to Rs 11.84 per share from Rs 6.97 per share in 2018. The return on average equity (including surplus on assets) increased to 30.66% as compared to 23.77% in 2018.
The Board has approved 20% final cash dividend (Rs 2.00 per share) for the year 2019 bringing the total dividend payout for the year to Rs 5.00 per share (50%) as Rs 3.00 per share i.e. 30% interim cash dividend was paid and issuance of 10% bonus shares during the year.
We are pleased to inform you that Meezan Bank Foundation is being formed with the aim to promote development and advance the welfare and well-being of the people of Pakistan.
The Bank’s return on financings, investments and placements increased from Rs 48.6 billion in 2018 to Rs 94.3 billion in 2019, an increase of 94% due to the Bank’s strong balance sheet growth and re-pricing of earning assets due to increase in SBP’s Target Rate. Correspondingly, the Bank’s return on deposits and other dues also increased from Rs 20.5 billion in 2018 to Rs 47.7 billion in 2019 – an increase of 133% primarily due to higher profit rates and increase in deposit base.
The Bank’s non-funded and other income grew by 25% to cross Rs 9 billion from Rs 7.5 billion. The growth in the trade (import & export) business of the Bank which resulted in increased fee income and foreign exchange income contributed to this increase in Non-Funded Income.
The Bank’s operating and other expenses increased to Rs 25.5 billion from Rs 19.7 billion primarily due to increase in rent and costs associated with opening of 100 new branches, rising inflation and IT infrastructure cost. The rise in expenses, however, was sufficiently absorbed by growth in the Bank’s income, resulting in improvement in the income efficiency ratio to 46% as compared to 55% last year.
The Bank’s deposit portfolio crossed the Rs 900 billion benchmark to close above Rs 932 billion recording a growth of 19% as compared to banking industry deposit growth of 9.6 percent.
Meezan Bank is now the sixth largest Bank in Pakistan in terms of both the deposits and the branches with network of 760 branches in 223 cities. Financings of the Bank stood at Rs 495
The Bank’s non-performing financing ratio of 1.78%, compared to an average of 9% of the Banking Industry as a whole is a testimony to the stringent risk acceptance parameters of the Bank.