The Board of Directors of Meezan Bank Limited in its meeting, held at Karachi on October 24, 2018 approved the unconsolidated condensed interim financial statements of the Bank and its consolidated financial statements for the nine months period ended on September 30, 2018. The meeting was presided by Mr. Riyadh S.A. A. Edrees – Chairman of the Board and Mr. Faisal A. A. A. Al – Nassar – Vice Chairman of the Board was also present.
We are grateful to Allah (SWT) for excellent performance of the Bank for the nine months ended on September 30, 2018. Profit after tax increased to Rs 6,248 million from Rs 4,717 million in corresponding period last year reflecting a growth of 32%. The Bank recorded Earnings per Share (EPS) of Rs 5.88 per share.
Deposits of the Bank grew by 6% and closed at Rs 711 billion. While CASA mix of the Bank stood at 76% of the total deposits as compared to 75% in December 2017. The Bank maintained its position as the 7th largest Bank (amongst both Islamic as well as Conventional Banks) in terms of deposits in Pakistan with a branch network of 610 branches in 160 cities.
Islamic Financings and related assets grew by 5% from December 2017 and closed at Rs 411 billion and the Advance to Deposit ratio stood at 62%. The Bank maintained its financing exposure in all sectors and continued to actively pursue growth in Small and Medium Enterprise (SME) / Commercial and Consumer segment. With a well-diversified product base, the Bank is well positioned to cater to all financing needs of our customers in a Shariah compliant manner.
The Bank’s net spread before provision increased by 27% primarily due to Bank’s continuous focus on increasing earning assets while Bank’s fee and commission income grew by 20% – mainly due to growth in trade finance business which grew by 42% in trade finance business from corresponding period last year.
The JCR-VIS Credit Rating Company Limited, an affiliate of Japan Credit Rating Agency, Japan has upgraded the Bank’s credit rating as follows:
|Rating Type||Previous Credit Rating||Upgraded Credit Rating|
|Entity Long-term rating||AA (Double A)||AA+ (Double A Plus)|
|Entity Short-term rating||A1+ (A One Plus)||A1+ (A One Plus)|
|Additional Tier I Sukuk rating||Not Applicable||AA- (Double A Minus)|
|Subordinated Tier II Sukuk rating||AA- (Double A Minus)||AA (Double A)|
The JCR-VIS has maintained the Bank’s short term rating at A1+ (A One Plus) with stable outlook which is the highest standard in short term rating. The assigned ratings indicate sound performance indicators of the Bank.