The Board of Directors of Meezan Bank Limited in its meeting, held at Karachi on February 12, 2020 approved the audited financial statements of the Bank for the year ended on December 31, 2019. The meeting was presided by Mr. Riyadh S.A. A. Edrees – Chairman of the Board, Mr. Faisal A. A. A. Al – Nassar – Vice Chairman of the Board was also present.
The Board has approved 20% final cash dividend (Rs 2.00 per share) for the year 2019 bringing the total dividend payout for the year to Rs 5.00 per share (50%) as Rs 3.00 per share i.e. 30% interim cash dividend was paid during the year. The Bank also issued 10% bonus shares during the year.
The Bank’s deposits crossed the Rs 900 billion mark to close at Rs 932 billion, recording a growth of 19% against an overall banking industry deposit growth of 9.6%. Meezan Bank is now the sixth largest Bank in Pakistan in terms of both deposits and branches with a network of 760 branches in 223 cities. The Bank’s Trade Finance business crossed Rs. 1 trillion for the 2nd consecutive year.
As a gesture of thankfulness to Allah SWT on the Bank’s growth and success, the Bank’s Board has announced to establish Meezan Bank Foundation with the aim of promoting sustainable development and welfare of the people of Pakistan.
Financing portfolio of the Bank stood at Rs 495 billion with an Advances to Deposit Ratio (ADR) of 53% which is in line with the overall slowdown in economy. The Bank’s non-performing financing ratio of 1.78%, compared to a Banking industry average of 9% is a testimony to the stringent risk acceptance parameters of the Bank. Recognizing stresses in certain sectors of the economy and in keeping with the prudent practices historically adopted by the Bank, an additional General Provision of Rs 1,525 million against any potential non-performing financings was approved by the Board. The Bank’s non-performing financings coverage ratio stands at 142% – one of the highest in the banking industry.
Administrative and other operating expenses increased to Rs 25.5 billion from Rs 19.7 billion primarily due to rising inflation, costs associated with new branches and IT infrastructure cost. however, the rise in expenses is sufficiently absorbed by growth in the Bank’s income, resulting in improvement in the income efficiency ratio to 46% as compared to 55% last year.