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. 

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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Posted on: 2021-10-14T17:53:23+05:00

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