Meezan Bank rounded-off CY20 with net profits of Rs 22 bln, up by 45.5%

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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Posted on: 2021-02-18T16:54:00+05:00

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