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MEBL records 33% increase in half yearly profits

August 11, 2022 (MLN): Meezan Bank Limited (MEBL) has declared its financial results for 1HCY22 ended June 30, 2022 as per which, the bank has observed an upsurge of 33% in its half-year profits, standing at Rs17 billion which translated into an EPS of Rs10.48.

Along with the result, the Board of Directors (BoD) of the bank recommended a semi-annual dividend of Rs1.75 per share. This is in addition to the interim dividend already paid at Rs1.75 per share i.e. 17.50%.

Further, BoD also offered bonus shares in the proportion of 10 shares for every 100 shares held i.e., 10%.

This improvement in profits was due to a significant increase in net spread earned and non-funded income (NFI).

According to the financial statement, the bank witnessed a 45.8% increase in net spread earned that clocked in at Rs45.5bn due to repricing of investments and advances along with balance sheet expansion.

Similarly, during 1HCY22, the non-funded income of the bank went up by 47% YoY mainly on account of higher fee and commission income (up by 40% YoY), other income (up by 75% YoY) and FX income (up by 95% YoY). However, capital gain of securities plunged by 74% YoY to Rs116mn.

Among other line items, operating expenses of the bank surged by 25% YoY, possibly due to branch expansion and relatively higher inflation, Insight Securities highlighted.

On the provision front, the bank posted a net charge of Rs1.19bn, up by 2.7 times YoY which affected the financial health of the bank.

Lastly, higher effective taxation of 49% as compared to 40% during SPLY kept the profits in check.

Consolidated Profit and Loss Account for the half-year ended June 30, 2022('000 Rupees)

 

Jun-22

Jun-21

% Change

Profit/return earned on Islamic financing and related assets, investments and placements

 88,361,922

 50,117,383

76.31%

Profits on deposits and other dues expensed

 42,877,572

 18,923,280

126.59%

Net spread earned

 45,484,350

 31,194,103

45.81%

OTHER INCOME

 

 

 

Fee and commission income

 6,814,445

 4,860,013

40.21%

Dividend income

 293,097

 198,242

47.85%

Foreign exchange income

 3,131,906

 1,605,039

95.13%

Gain on securities-net

 116,449

 445,913

-73.89%

Other income

 759,935

 433,747

75.20%

Non-funded income

 11,115,832

 7,542,954

47.37%

Total income

 56,600,182

 38,737,057

46.11%

 

 

 

 

OTHER EXPENSES

 

 

 

Operating expenses

 20,740,453

 16,579,015

25.10%

Workers' Welfare Fund

 743,885

 496,696

49.77%

Other charges

 5,933

 4,916

20.69%

Total other expenses

 21,490,271

 17,080,627

25.82%

 

 35,109,911

 21,656,430

62.12%

Share of results of associates before taxation

 (106,575)

 104,871

Profit before provisions

 35,003,336

 21,761,301

60.85%

Provisions and write-offs -net

 1,189,388

 432,891

174.75%

Extraordinary/unusual items

 –

 –

 

Profit before taxation

 33,813,948

 21,328,410

58.54%

Taxation

 16,676,896

 8,426,530

97.91%

Profit after taxation

 17,137,052

 12,901,880

32.83%

Basic and diluted earnings per share (Rupees)

 10.48

 7.83

33.84%

 

Copyright Mettis Link News

Posted on:2022-08-11T15:53:55+05:00

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