August 12, 2021 (MLN): Meezan Bank Limited (MEBL) has declared its financial results for 1HCY21 ended June 30, 2021 as per which, the bank has observed an increase of 11.39% in its half-year net profits, standing at Rs12.90 billion which translated into an EPS of Rs9.
Along with the result, the Board of Directors (BoD) of the bank recommended a semi-annual dividend of Rs1.5 per share, taking cumulative payout to Rs3.0 per share.
Further, BoD also offered bonus shares in the proportion of 15 shares for every 100 shares held i.e., 15%.
This improvement in profits was due to non-funded income (NFI) and lower provisions.
According to the financial statement, the bank witnessed a contraction of 3.6% in Net Spread earned that clocked in at Rs31.2bn as a result of a 13.3% decline in return earned on Islamic financing and related assets during 1HCY21.
In contrast, during 1HCY21, non-funded income (NFI) of the bank jumped up by 35.6% YoY mainly on account of higher fee and commission income (up by 64% YoY), dividend income (up by 2.2 times YoY) and FX income (up by 24% YoY). However, capital gain of securities plunged by 54% YoY to Rs445mn.
Among other line items, operating expenses of the bank surged by 14% YoY whereas provision expenses declined by 86% YoY, supporting bottom-line growth.
|
Consolidated Profit and Loss Account for the half-year ended June 30, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Jun-21 |
Jun-20 |
% Change |
|
Profit/return earned on Islamic financing and related assets. Investments and placements |
50,117,383 |
57,832,671 |
-13.34% |
|
Profits on deposits and other dues expensed |
18,923,280 |
25,486,719 |
-25.75% |
|
Net spread earned |
31,194,103 |
32,345,952 |
-3.56% |
|
OTHER INCOME |
|
|
– |
|
Fee and commission income |
4,860,013 |
2,963,134 |
64.02% |
|
Dividend income |
198,242 |
91,127 |
117.54% |
|
Foreign exchange income |
1,605,039 |
1,298,113 |
23.64% |
|
Gain on securities-net |
445,913 |
965,629 |
-53.82% |
|
Other income |
433,747 |
245,734 |
76.51% |
|
|
7,542,954 |
5,563,737 |
35.57% |
|
Total income |
38,737,057 |
37,909,689 |
2.18% |
|
OTHER EXPENSES |
|
|
– |
|
Operating expenses |
16,579,015 |
14,584,297 |
13.68% |
|
Workers' Welfare Fund |
496,696 |
464,378 |
6.96% |
|
Other charges |
4,916 |
83,686 |
-94.13% |
|
Total other expenses |
17,080,627 |
15,132,361 |
12.87% |
|
|
21,656,430 |
22,777,328 |
-4.92% |
|
Share of results of associates before taxation |
104,871 |
(355,942) |
– |
|
Profit before provisions |
21,761,301 |
22,421,386 |
-2.94% |
|
Provisions and write offs -net |
432,891 |
3,097,096 |
-86.02% |
|
Extraordinary / unusual items |
– |
– |
– |
|
Profit before taxation |
21,328,410 |
19,324,290 |
10.37% |
|
Taxation |
8,426,530 |
7,741,200 |
8.85% |
|
Profit after taxation |
12,901,880 |
11,583,090 |
11.39% |
|
Basic and diluted earnings per share (Rupees) |
9.00 |
8.97 |
0.33% |
Copyright Mettis Link News
42736
