May 06, 2020 (MLN): Meezan Bank Limited (MEBL) continued its growth trajectory and recorded an impressive growth of 62% YoY in net profits after tax to Rs 4.94 billion for the quarter ended on March 31, 2020. In the same quarter of last year, the bank earned net profits of Rs 3 billion.
This has reflected in the bank’s earnings per share which exhibited a growth of 69.2% YoY from Rs 2.31 to Rs 3.91.
The bank in-line with SBP directive did not announce any cash dividend for the quarter.
During the quarter, return on financings, investments and placements increased from Rs 8.8 billion in Jan-Mar CY19 to Rs 14.7 billion in the quarter under review, showing an increase of 66% YoY due to the Bank’s strong balance sheet growth stronger balance sheet growth on Sukuk’s issuance, countering the decline in interest rates.
The Bank’s non-funded and other income (NFI) grew by 63.4% YoY to cross Rs 18.2 billion from Rs 11 billion on account of gain of Rs 722.8 million on sale of securities, additionally, rise in foreign exchange income, dividend income and other income by 131%, 34.4% and 31% YoY also contributed to this increase in NFI.
The Bank’s operating and other expenses increased to Rs 7 billion from Rs 5.6 billion primarily due to IT infrastructure cost and increase in staff expenses, rent and costs associated with new branches – an investment in the future. The rise in expenses, however, was sufficiently absorbed by growth in the Bank’s income, resulting in improvement in the cost to income ratio to 39% as compared to 50% in the same quarter last year. Whereas, Provisions charged to the tune of Rs 1.637 billion restricted the bottom-line growth of the bank.
|
Consolidated Profit and Loss Account for the Quarter ended March 31, 2020 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Mar-20 |
Mar-19 |
% Change |
|
Profit/return earned on Islamic financing and related assets. Investments and placements |
29,835,539 |
18,208,415 |
63.86% |
|
Profits on deposits and other dues expensed |
15,122,738 |
9,352,718 |
61.69% |
|
Net spread earner |
14,712,801 |
8,855,697 |
66.14% |
|
OTHER INCOME |
|
|
|
|
Fee and commission income |
1,622,601 |
1,869,576 |
-13.21% |
|
Dividend income |
59,577 |
44,318 |
34.43% |
|
Foreign exchange income |
963,128 |
417,100 |
130.91% |
|
(Loss) / gain on securities |
722,838 |
(142,952) |
|
|
Unrealized loss on held for trading investments |
– |
– |
|
|
Other income |
134,454 |
102,570 |
31.09% |
|
Total income |
18,215,399 |
11,146,309 |
63.42% |
|
|
|
|
|
|
OTHER EXPENSES |
|
|
|
|
Operating expenses |
6,864,312 |
5,478,585 |
25.29% |
|
Workers' Welfare Fund |
220,949 |
130,437 |
69.39% |
|
Other charges |
83,179 |
1,368 |
5980.34% |
|
Total other expenses |
7,168,440 |
5,610,390 |
27.77% |
|
Share of results of associates before taxation |
(907,151) |
154,782 |
|
|
Profit before provisions |
10,139,808 |
5,690,701 |
78.18% |
|
Provisions/ reversals) and write offs -net |
1,637,731 |
(99,947) |
|
|
Extraordinary/unusual items |
|
– |
|
|
Profit before taxation |
8,502,077 |
5,790,648 |
46.82% |
|
Taxation |
3,558,836 |
2,741,632 |
29.81% |
|
Profit after taxation |
4,943,241 |
3,049,016 |
62.13% |
|
Basic and diluted earnings per share (Rupees) |
3.91 |
2.31 |
69.26% |
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