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