April 25, 2019 (MLN): Meezan Bank Limited has announced its financial earnings for the quarter ended March 31, 2019, wherein it’s Profit after Tax has escalated by 32% to Rs. 3.1 billion (EPS: Rs. 2.59).
The bank managed to register a growth in net earnings in spite of a higher effective tax rate, which resulted from imposition of 4% super tax on profits of CY17 during the quarter.
The growth in profits was a direct result of 56% increase in Net spread earned. Moreover, increase in Fee and commission Income by 10% further contributed to the bank’s net earnings.
MEBL also benefited from reversals booked during the period, which added further Rs. 99 million to the bottom-line earnings.
However, increase in operating expense by 22% slowed down the pace of profitability growth.
The bank also announced an interim Cash Dividend for the quarter at Rs. 1 per share i.e.10%.
Profit and loss account for the quarter ended March 31 2019 (Rupees'000) |
|||
---|---|---|---|
Mar-19 |
Mar-18 |
% Change |
|
Profit/return earned on islamic financing and related assets, investments and placements |
18,208,415 |
10,118,639 |
79.95% |
Profit on deposits and other dues expensed |
9,108,148 |
4,307,151 |
111.47% |
Net spread earned |
9,100,267 |
5,811,488 |
56.59% |
OTHER INCOME |
|||
Fee and commission income |
1,869,576 |
1,693,016 |
10.43% |
Dividend income |
44,318 |
48,629 |
-8.87% |
Foreign exchange income |
417,100 |
373,021 |
11.82% |
Loss on securities – net |
-142,952 |
-15,395 |
828.56% |
Unrealised loss on held for trading investments |
-1,129 |
||
Other income |
102,570 |
53,561 |
91.50% |
Total income |
11,390,879 |
7,963,191 |
43.04% |
OTHER EXPENSES |
|||
Operating expenses |
5,638,875 |
4,633,976 |
21.69% |
Workers' Welfare Fund |
130,437 |
64,120 |
103.43% |
Other charges |
1,368 |
751 |
82.16% |
Total other expenses |
5,770,680 |
4,698,847 |
22.81% |
Share of results of associates before taxation |
154,782 |
430,449 |
-64.04% |
Profit before provisions |
5,774,981 |
3,694,793 |
56.30% |
(Reversals) / provisions and write offs – net |
-99,947 |
130,298 |
|
Extraordinary / unusual items |
|||
Profit before taxation |
5,874,928 |
3,564,495 |
64.82% |
Taxation |
2,774,501 |
1,218,611 |
127.68% |
Profit after taxation |
3,100,427 |
2,345,884 |
32.16% |
Basic and diluted earnings per share |
2.59 |
1.90 |
36.32% |
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