MEBL posts a slender increase in profits

MG News | October 14, 2021 at 05:53 PM GMT+05:00

0:00

October 14, 2021 (MLN): Meezan Bank Limited (MEBL) has declared its financial results today for nine months ended September 30, 2021, as per which, the bank has witnessed an up of 8.17% in its net profit, standing at Rs19.97 billion which translated into an EPS of Rs12.14.

Along with the result, the Board of Directors (BoD) of the bank recommended a cash dividend for the quarter and 9MCY21, at Rs1.5 per share. This is in addition to the interim dividend already paid at Rs3 per share i.e, 30%.

This improvement in profits is attributed to improved non-funded income (NFI) and lower provisions.

According to the financial statement, the bank witnessed a contraction of 2.49% in Net Spread earned that clocked in at Rs48.50bn as a result of a 13.29% decline in Profits on deposits and other dues expensed during the period under review.

The non-funded income (NFI) of the bank jumped up by 41.13% YoY mainly on account of higher fee and dividend income (up by 119% YoY), commission income (up by 60% YoY), and FX income (up by 34.12% YoY). However, capital gain of securities plunged by 47% YoY to Rs535.4mn.

Moreover, operating expenses of the bank surged by 13.58% YoY whereas provision expenses declined by 87% YoY, supporting bottom-line growth.

On the taxation front, the bank paid Rs13.34bn during 9MCY21, as compared to Rs12.19bn in the same period last year.

Consolidated Profit and Loss Account for the nine months ended September 30, 2021 ('000 Rupees)
	Sep-21	Sep-20	% Change
Profit/return earned on Islamic financing and related assets. Investments and placements	77,616,220	83,316,762	-6.84%
Profits on deposits and other dues expensed	29,112,818	33,575,383	-13.29%
Net spread earner	48,503,402	49,741,379	-2.49%
OTHER INCOME
Fee and commission income	7,759,021	4,849,933	59.98%
Dividend income	358,769	163,648	119.23%
Foreign exchange income	2,149,005	1,602,262	34.12%
gain on securities	535,452	1,004,617	-46.70%
Unrealized loss on held for trading investments
Other income	598,376	457,822	30.70%
Total income	59,904,025	57,819,661	3.60%
OTHER EXPENSES
Operating expenses	25,303,760	22,279,032	13.58%
Workers' Welfare Fund	747,321	707,114	5.69%
Other charges	6,524	84,553	-92.28%
Total other expenses	26,057,605	23,070,699	12.95%
Share of results of associates before taxation	23,243	89,293	-73.97%
Profit before provisions	33,869,663	34,838,255	-2.78%
Provisions and write offs -net	553,418	4,188,165	-86.79%
Profit before taxation	33,316,245	30,650,090	8.70%
Taxation	13,347,120	12,189,870	9.49%
Profit after taxation	19,969,125	18,460,220	8.17%
Basic and diluted earnings per share (Rupees)	12.14	11.24	8.01%

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