July 28th, 2017
The Board of Directors of Meezan Bank in its meeting, held at Karachi on July 26, 2017 approved the unconsolidated financial statements of the Bank and its consolidated financial statements for the half year ended June 30, 2017. 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 also attended the meeting.
The Board has decided to increase the paid up capital of the Bank by approving a 6% Rights Issue of shares at a price of Rs 50 per share inclusive of Rs 40 as premium per share. This increase will support the Bank’s growth plan and Capital Adequacy Ratio. The Right Shares offered will rank pari passu in all respect with the existing ordinary shares of the Bank.
The Board of Directors has also approved an interim cash dividend of Rs 1.75 per share (i.e. 17.5%) for 2017 maintaining the Bank’s unbroken payout record since its listing on the Stock Exchange in the year 2000.
Meezan Bank has continued its growth momentum and recorded good results for the half year ended June 30, 2017. Profit before tax increased to Rs 5,408 million from Rs 4,433 million in corresponding period last year reflecting a growth of 22%, while profit after tax increased by 18% in the same period due to extended applicability of Super Tax. The Earnings per Share (EPS) of the Bank stood at Rs 3.15 for the half year ended on June 30, 2017. The Bank maintained its position as the leading Islamic bank in Pakistan with a branch network of 571 branches in 146 cities.
Total deposits of the Bank reached Rs 593 billion, registering a 5% growth over last year and its Advances to Deposits Ratio was 57% compared to 45% in June 2016. The trade business volume handled by the Bank grew by 36% to Rs 327 billion while Fee and Commission income grew by 63% over the corresponding period last year.
The JCR-VIS Credit Rating Company Limited, an affiliate of Japan Credit Rating Agency, Japan has reaffirmed the Bank’s long-term entity rating of AA (Double A) and short-term rating at A1+ (A One Plus) with stable outlook. The short-term rating of A1+ is the highest standard in short-term rating. The rating indicates sound performance indicators of the Bank.