February 16, 2023 (MLN): Meezan Bank Limited (MEBL), Pakistan’s first and largest Islamic bank, has unveiled its financial results today for the year ended on December 31, 2022, as per which, the bank’s profitability grew by 58.35% to stand at Rs45.14 billion which translated into the EPS of Rs25.11.
Along with the result, the Board of Directors (BoD) of the bank recommended an interim cash dividend for the year ended December 31, 2022, at Rs3 per share i.e., 30%. This is in addition to interim Dividend(s) already paid at Rs5.50 per share i.e., 55%.
This improvement in profits was due to a higher net spread earned as it expanded by around 77% YoY to clock in at Rs121.82bn amid profit earned in Islamic financing.
While, the non-funded income (NFI) of the bank jumped by 26.17% YoY mainly on account of higher fee and commission income (up by 35.61% YoY), and dividend income (up by 16.04 YoY). However, capital gain on securities plunged by 2x YoY to Rs100.18mn.
Moreover, the operating expenses of the bank surged by 34% YoY.
On the taxation front, the bank paid Rs45.14bn during CY22, witnessing a twofold surge as compared to Rs19.46bn in CY21.
| Consolidated Profit and Loss Account for the half-year ended December 31, 2022 (‘000 Rupees) | |||
|---|---|---|---|
| Dec-22 | Dec-21 | % Change | |
| Profit/return earned on Islamic financing and related assets, investments, and placements | 232,245,452 | 110,077,456 | 110.98% |
| Profits on deposits and other dues expensed | 110,426,062 | 41,171,867 | 168.21% |
| Net spread earned | 121,819,390 | 68,905,589 | 76.79% |
| OTHER INCOME | |||
| Fee and commission income | 14,729,321 | 10,861,439 | 35.61% |
| Dividend income | 629,478 | 542,467 | 16.04% |
| Foreign exchange income | 3,617,274 | 3,158,131 | 14.54% |
| (Loss)/Gain on securities-net | (100,184) | 536,390 | -118.68% |
| Other income | 1,238,374 | 843,518 | 46.81% |
| Non-funded income | 20,114,263 | 15,941,945 | 26.17% |
| Total income | 141,933,653 | 84,847,534 | 67.28% |
| OTHER EXPENSES | |||
| Operating expenses | 46,841,953 | 34,939,071 | 34.07% |
| Workers’ Welfare Fund | 1,927,520 | 962,709 | 100.22% |
| Other charges | 95,150 | 28,172 | 237.75% |
| Total other expenses | 48,864,623 | 35,929,952 | 36.00% |
| 93,069,030 | 48,917,582 | 90.26% | |
| Share of results of associates before taxation | (87,366) | 52,006 | – |
| Profit before provisions | 92,981,664 | 48,969,588 | 89.88% |
| Provisions and write-offs -net | 4,176,661 | 992,830 | 320.68% |
| Extraordinary/unusual items | – | – | |
| Profit before taxation | 88,805,003 | 47,976,758 | 85.10% |
| Taxation | 43,663,751 | 19,469,170 | 124.27% |
| Profit after taxation | 45,141,252 | 28,507,588 | 58.35% |
| Basic and diluted earnings per share (Rupees) | 25.11 | 15.77 | 59.23% |
Copyright Mettis Link News
Posted on: 2023-02-16T15:59:31+05:00
