The Board of Directors of Meezan Bank Limited, the largest Islamic Bank in Pakistan, held their 41st Board Meeting in Dubai on 17th October, 2008 and inter-alia declared the financial results of the Bank for the third quarter ended 30th September, 2008 and announced a Bonus share issue of 8.6%. The Chairman of the Board, Sheikh Ebrahim Bin Khalifa Al Khalifa, presided over the meeting.
Against the backdrop of an unprecedented international financial crisis, it is heartening to note the satisfactory financial performance of Meezan Bank Limited. Despite the difficult economic conditions that have prevailed in Pakistan, the Bank has been able to grow in almost all its business segments. Deposits increased by 12% and the branch network of the Bank increased from 100 branches at the start of the year to 122 branches located in 33 cities. The Financing Portfolio also increased by 16% during this period. Even more impressive is fact that despite the downturn in the economy the bank was able to increase income from Core Banking activities by 45% reflecting the strong market positioning of the Bank. Profit before tax was lower by 19%, mainly due to the impact of provision booked on account of the Bank’s equity portfolio which was marked to market.
The Chairman, H.E. Sheikh Ebrahim said “The Bank remained very liquid during the period and has been a net provider of funds in the interbank market. Its Advance Deposit Ratio (ADR) (a measure of the level of financing relative to deposits) was maintained at very low levels of approximately 60% during the quarter reflecting a very comfortable liquidity position. In addition, total investments, including local interbank placements, remained high during the quarter”.
Noor Financial Investment Company, Kuwait (Noor), the major shareholder of the Bank increased its shareholding in the Bank from 34.6% to 45.5% reflecting the confidence it has on the future prospects of Meezan Bank. The Board reiterated its commitment to increase the capital of Meezan as and when required, especially in the light of the new increased capital requirement that has been announced by the State Bank of Pakistan recently.
Meezan Bank, was incorporated in 1997 and has been one of the fastest growing financial institutions in Pakistan. It has the privilege of having been awarded the first full fledged Islamic Banking license by the State Bank of Pakistan and has grown at an average annual rate of 60% per year over the last 5 years. Total number of employees also increased from 159 in 2002 to 2983 in Sept 2008.