Meezan Bank sees exceptional growth in profits earned on Islamic financing

By MG News | August 28, 2019 at 04:44 PM GMT+05:00

0:00

August 28, 2019 (MLN): As the last year appeared as good for the Meezan Bank Limited (MEBL), likewise recently announced financial results for the half year ended June 30^th 2019 hasn’t disappointed either.

MEBL has reported 63.3% increase in its net profits to Rs.7 billion from Rs 4.3 billion in the same period last year with Earning per share (EPS) locked in at Rs 5.42.

The robust increase in profits largely came from exceptional growth in return earned on Islamic financing and related investments as it went up significantly by 89% which allowed bank’s net spread to increase by 67.3%.

During the period, bank’s non-interest income surged by 16.7% YoY to Rs 5 billion mainly due to rise in income earned from foreign exchange operations and fee and commission income as they went up by 36% and 15% respectively.

While major expense heads such as operating costs, workers’ welfare fund, other charges and taxation expense increased by a significant margin, the overall impact on the bank’s ultimate earnings was still impressive.

Alongside the financial results, MEBL announced an interim dividend of Rs1 per share i.e 10% for the period mentioned above.

Consolidated Profit and Loss Account for the Half Year ended June 30th 2019 ('000 Rupees)
	Jun-19	Jun-18	% Change
Profit/return earned on Islamic financing and related assets. Investments and placements	40,011,089	21,124,766	89.40%
Profits on deposits and other dues expensed	19,255,013	8,719,085	120.84%
Net spread earner	20,756,076	12,405,681	67.31%
OTHER INCOME
Fee, commission and brokerage income	3,856,279	3,360,422	14.76%
Dividend income	108,193	108,248	-0.05%
Income from dealing in foreign currencies	1,074,466	791,304	35.78%
Capital (loss)/gain on sale of investments - net	(141,029)	(43,778)	222.15%
Unrealized gain/(loss)on held for trading investments	-	(774)
Other income	221,978	170,686	30.05%
Total other income	5,119,887	4,386,108	16.73%
OTHER EXPENSES
Operating expenses	11,677,102	9,431,143	23.81%
Other (reversal of provisions)/provisions	-	-
Other charges	2,155	805	167.70%
Workers' Welfare Fund	344,685	169,337	103.55%
Total other expenses	12,023,942	9,601,285	25.23%
Share of results of associates before taxation	(300,731)	146,213
profit before provisions	13,551,290	7,336,717	84.71%
Provisions/ reversals) and write offs -net	1,052,237	105,834	894.23%
Profit before taxation	12,499,053	7,230,883	72.86%
Taxation	5,495,046	2,942,220	86.77%
Profit after taxation	7,004,007	4,288,663	63.31%
Basic and diluted earnings per share (Rupees)	5.42	3.22	68.32%

Copyright Mettis Link News

Related News

Name	Price/Vol	%Chg/NChg
KSE100	129,531.45 36.98M	1.04% 1332.02
ALLSHR	80,639.03 118.10M	1.07% 851.41
KSE30	39,537.44 13.04M	1.11% 432.45
KMI30	188,975.31 13.52M	1.10% 2059.70
KMIALLSHR	54,708.13 48.01M	0.93% 506.25
BKTi	34,137.34 7.78M	1.97% 660.66
OGTi	28,138.49 0.67M	0.63% 175.91

Symbol	Bid/Ask	High/Low

Name	Last	High/Low	Chg/%Chg
BITCOIN FUTURES	106,530.00	106,600.00 105,440.00	780.00 0.74%
BRENT CRUDE	67.17	67.29 67.05	0.06 0.09%
RICHARDS BAY COAL MONTHLY	97.50	97.50 97.50	0.70 0.72%
ROTTERDAM COAL MONTHLY	103.80	103.80 103.80	-3.45 -3.22%
USD RBD PALM OLEIN	998.50	998.50 998.50	0.00 0.00%
CRUDE OIL - WTI	65.47	65.65 65.34	0.02 0.03%
SUGAR #11 WORLD	15.70	16.21 15.55	-0.50 -3.09%