February 18, 2021 (MLN): Meezan Bank Limited ( MEBL) has disclosed financial performance for the CY20, wherein the bank witnessed a 45.5% YoY increase in net profits from Rs 15.2 billion to Rs 22.16 billion.
The earnings per share of the bank grew from Rs 10.77/sh to Rs 15.67/sh.
The Bank also announced a final cash dividend of Rs2/share, taking the full-year payout to Rs 40/share i.e. 40%.
During the year, Bank’s Net Spread earned increased by 39.34% YoY largely on the back of unmatched asset growth.
The non-interest income of the bank also witnessed a slight increase of 8% YoY primarily led by 82.65% YoY jump in Dividend Income and 29% YoY growth in the bank’s other income.
Furthermore, there was a slight decrease of 4% YoY noted in the fee and commission income, which is understandable given the slowdown in economic activities during the lockdown period.
On the costs front, the Bank observed a 16.6% YoY escalation in overall expenses, however, its cost to income ratio improved to 40% from 46% in 2019.
The Bank also booked provisioning expenses of Rs 8.2 billion, up by 96% YoY, which restricted its profitability.
|
Consolidated Profit and Loss Account for the year ended December 31, 2020 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Dec-20 |
Dec-19 |
% Change |
|
Profit/return earned on islamic financing and related assets. Investments and placements |
106,589,059 |
94,270,461 |
13.07% |
|
Profits on deposits and other dues expensed |
41,740,168 |
47,731,080 |
-12.55% |
|
Net spread earned |
64,848,891 |
46,539,381 |
39.34% |
|
OTHER INCOME |
|
|
– |
|
Fee and commission income |
5,913,990 |
6174644 |
-4.22% |
|
Dividend income |
623,683 |
341,464 |
82.65% |
|
Foreign exchange income |
2,153,669 |
2,684,097 |
-19.76% |
|
(Loss) / gain on securities-net |
683,067 |
(417,599) |
– |
|
Other income |
697,480 |
537,580 |
29.74% |
|
|
10,071,889 |
9,320,186 |
8.07% |
|
Total income |
74,920,780 |
55,859,567 |
34.12% |
|
|
|
|
– |
|
OTHER EXPENSES |
|
|
– |
|
Operating expenses |
28,808,560 |
24,830,659 |
16.02% |
|
Workers' Welfare Fund |
872,949 |
609,524 |
43.22% |
|
Other charges |
93,232 |
82,275 |
13.32% |
|
Total other expenses |
29,774,741 |
25,522,458 |
16.66% |
|
Profit before provisions |
45,146,039 |
30,337,109 |
48.81% |
|
Provisions and write offs -net |
8,210,297 |
4,186,430 |
96.12% |
|
Extraordinary / unusual items |
– |
– |
– |
|
Profit before taxation |
36,935,742 |
26,150,679 |
41.24% |
|
Taxation |
14,770,136 |
10,918,605 |
35.27% |
|
Profit after taxation |
22,165,606 |
15,232,074 |
45.52% |
|
Basic and diluted earnings per share (Rupees) |
15.67 |
10.77 |
45.50% |
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