Karachi, February 14, 2018: The Board of Directors of Meezan Bank Limited in its meeting, held at Karachi on February 14, 2018 approved the audited unconsolidated and consolidated financial statements for the year ended on December 31, 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 was also present.
By the Grace of Allah (SWT), Meezan Bank has continued its growth momentum and recorded commendable results for the year 2017. Profit after tax increased to Rs 6.31 billion compared to Rs 5.56 billion last year – a 14 % growth. EPS of the Bank, on enhanced capital, increased to Rs 6.13 per share. The return on average equity on enhanced capital stood at 20.20%.
The Board recommended a final cash dividend of Rs 1.25 per share (12.5%) for the year 2017. This declaration, together with the earlier interim cash dividend of 17.5% paid in the third quarter of 2017, brings the total payout for the year to Rs 3.00 per share (30%). The Bank has maintained its unbroken payout record since the date of its listing on the Stock Exchange.
Deposits of the Bank grew by a healthy 19%, closing at Rs 673 billion. The Bank maintained its current and savings accounts (CASA) ratio despite intense competition for mobilization of low cost deposits in the industry. The Bank’s network of 601 online branches in 159 cities, which is the largest Islamic Banking network in the country, was the key contributor in its deposit growth.
A significant achievement during the year was the 35% increase in the financing portfolio of the Bank. The Advance to Deposits Ratio (ADR) of the Bank now stands at 62%., compared to 55% in 2016. The Bank’s NPL ratio, at 1.5%, is one of the lowest in the Banking Industry. The Bank, with its diverse product base, can easily cater to customers ranging from large multinational corporates to individual consumers, all in a fully Shariah-compliant manner.
The Bank’s net spread before provisions increased by 16% primarily due to the Bank’s continued focus on maintaining low cost of funds. Fee and commission income grew by 59% over last year with major contribution from trade finance income. The trade business volume handled by the Bank grew by 29% over last year.
The Bank also upgraded its core banking system Temenos (T24) to the new release of R16. This upgrade, besides enhancing system efficiencies, has enabled the Bank to offer new services such as Digital Banking, manage quick development of new products and easily integrate with Fintechs and other digital channels.
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 JCR-VIS Credit Rating Company Limited has also reaffirmed Sub-ordinated (Tier II) sukuk rating at AA- (Double A minus). These ratings indicate sound performance of the Bank. Meezan Bank is the only Islamic bank in Pakistan with AA and A1+ credit rating.
About Meezan Bank
Meezan Bank is the 8th largest bank in Pakistan and the leading Islamic bank of the country. The Bank provides a comprehensive range of Islamic banking products and services through a retail banking network of more than 600 branches supported by a countrywide network of over 570 ATMs, Visa & MasterCard Debit cards, a 24/7 Call Center, Internet Banking and Mobile Banking facility.
Meezan Bank has consistently been recognized as the Best Islamic Bank in Pakistan by numerous local and international institutions, which is a testimony of the Bank’s commitment to excellence. These institutions include Islamic Finance News – Malaysia, Global Finance magazine – New York, Asset AAA – Hong Kong, Asiamoney – Hong Kong, The Banker – United Kingdom, South Asian Federation of Accountants, Islamic Finance Forum of South Asian Awards, Pakistan Banking Awards – Dawn & IBP Pakistan, Employers Federation of Pakistan and CFA Association – Pakistan.
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 rating indicates sound performance indicators of the Bank. Meezan Bank is the only Islamic bank with AA credit rating in the Islamic banking industry in Pakistan.