April 25, 2022 (MLN): Meezan Bank Limited (MEBL), Pakistan's first and largest Islamic bank, has unveiled its financial results today for the quarter ended on March 31, 2022, as per which, the bank’s profitability grew by 51% to stand at Rs9.24 billion which translated into basic EPS of Rs5.65.
Along with the result, the Board of Directors (BoD) of the bank recommended an interim cash dividend for the quarter ended on March 31, 2022, at Rs1.75 per share i.e., 17.5%.
This improvement in profits was due to a higher net spread earned as it expanded by around 43% YoY to clock in at Rs21.46bn amid profit earned in Islamic financing.
While, the non-funded income (NFI) of the bank jumped up by 16.55% YoY mainly on account of higher fee and commission income (up by 37.4% YoY), dividend income (up by 2.5x YoY). However, capital gain on securities plunged by 95.1% YoY to Rs15.25mn.
Moreover, the operating expenses of the bank surged by 28% YoY. Meanwhile, the bank earned Rs29.55mn share of profits from associates and a 20% decline in provision expenses, supporting bottom-line growth.
On the taxation front, the bank paid Rs6bn during 1QCY22, as compared to Rs4.23bn in 1QCY21.
|
Consolidated Profit and Loss Account for the first quarter ended March 31, 2022 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Mar-22 |
Mar-21 |
% Change |
|
Profit/return earned on islamic financing and related assets, investments and placements |
38,137,493 |
24,229,777 |
57.40% |
|
Profits on deposits and other dues expensed |
16,678,750 |
9,180,800 |
81.67% |
|
Net spread earned |
21,458,743 |
15,048,977 |
42.59% |
|
OTHER INCOME |
|
|
– |
|
Fee and commission income |
3,356,404 |
2,443,004 |
37.39% |
|
Dividend income |
174,387 |
68,812 |
153.43% |
|
Foreign exchange income |
813,439 |
821,533 |
-0.99% |
|
Gain on securities-net |
15,252 |
309,116 |
-95.07% |
|
Other income |
177,437 |
250,376 |
-29.13% |
|
Non-funded income |
4,536,919 |
3,892,841 |
16.55% |
|
Total income |
25,995,662 |
18,941,818 |
37.24% |
|
|
|
|
– |
|
OTHER EXPENSES |
|
|
– |
|
Operating expenses |
10,217,420 |
7,989,753 |
27.88% |
|
Workers' Welfare Fund |
337,958 |
260,396 |
29.79% |
|
Other charges |
1,132 |
1,382 |
-18.09% |
|
Total other expenses |
10,556,510 |
8,251,531 |
27.93% |
|
|
15,439,152 |
10,690,287 |
44.42% |
|
Share of results of associates before taxation |
29,555 |
(48,133) |
– |
|
Profit before provisions |
15,468,707 |
10,642,154 |
45.35% |
|
Provisions and write offs -net |
227,890 |
284,571 |
-19.92% |
|
Extraordinary / unusual items |
– |
– |
– |
|
Profit before taxation |
15,240,817 |
10,357,583 |
47.15% |
|
Taxation |
5,997,085 |
4,230,676 |
41.75% |
|
Profit after taxation |
9,243,732 |
6,126,907 |
50.87% |
|
Basic earnings per share (Rupees) |
5.65 |
3.72 |
51.88% |
|
Diluted earnings per share (Rupees) |
5.64 |
3.72 |
51.61% |
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