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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