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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