MEBL posts a slender increase in profits

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. 

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