The Board of Directors of Meezan Bank, in its meeting held in Karachi on October 19, 2023 approved the financial statements of the Bank for the nine months period ended September 30, 2023. The meeting was chaired 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.
The Bank’s profit after tax increased to Rs 58.04 billion from Rs 28.60 billion in the corresponding period last year. The Board approved a third interim cash dividend of Rs 5.00 per share (50%), this brings the total cash dividend payout for the nine months to Rs 12.00 (120%) per share as Rs 7.00 per share (70%) interim cash dividend was paid for the first two quarters. The Bank remains adequately capitalized with a Capital Adequacy Ratio of 23.37% – significantly above the minimum regulatory requirement of 11.50%. Meezan Bank continues to be the most valuable bank in Pakistan in terms of market capitalization among all the listed banks.
Meezan Bank is one of the largest banks in Pakistan in terms of deposits, which crossed Rs 2 trillion landmark, for the first time ever in the history, with Current Accounts and Savings Account (CASA) representing 88% of total deposit portfolio. The Bank continued to maintain its leadership position in Roshan Digital Account (RDA) with a market share of 25% in terms of total RDA inflows in the banking industry of Pakistan. Meezan Bank has a network of 983 branches in 327 cities and more than 1,100 ATMs across the country. The Bank’s Mobile Banking App has been consistently ranked as the No.1 Mobile Banking App in Pakistan by both Apple Store and Google Play Store.
Total assets of the Bank crossed Rs 2.9 trillion, registering a 14% growth (Rs 364 billion), over December, 2022 (Rs 2.6 trillion). The Bank maintains superior asset quality with non-performing financing ratio of below 2% compared to industry average of approx. 7%. The Bank maintains a comfortable level of provisions against its non-performing financings with a coverage ratio of 171% – one of the highest in the banking industry.
Administrative and other expenses increased to Rs 50.8 billion from Rs 34.1 billion predominantly attributable to high inflation, a pronounced devaluation of the Rupee and increase in IT-related cost. However, despite the rise in expenses, the Bank was able to bring its cost to income ratio down to 30%.
With an extensive product portfolio, the Bank is well-positioned to cater to all financing needs of its customers within the bounds of Shariah. The Bank has a well-diversified assets portfolio comprising Corporate and SME customers and is among the market leaders in the consumer financing sector. Meezan has entity ratings at ‘AAA/A-1+’ (Triple A/ A-One Plus) which denotes the highest credit quality with negligible risk factors with Stable outlook assigned by VIS Credit Rating Company Limited.