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Meezan Bank sees exceptional growth in profits earned on Islamic financing

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 30th 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

Posted on: 2019-08-28T16:44:00+05:00

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