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% |
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