The Board of Directors of Meezan Bank in its meeting, held in Dubai on October 27, 2016 approved the unconsolidated condensed interim financial statements of the Bank and its consolidated financial statements for the nine months ended on September 30, 2016. The meeting was presided by Mr. Riyadh S.A.A. Edrees, the Chairman of the Board, the Vice Chairman of the Board Mr. Faisal A. A. A. Al-Nassar also attended the meeting.
A major milestone during the quarter was the successful issue of Shariah-compliant sub-ordinated Sukuk (Tier II) amounting to Rs 7 billion. The Sukuk will further strengthen the Bank’s capital adequacy ratio and support its future growth strategy. The issue received an excellent response from investors as a result of which the Bank exercised its green shoe option and accepted offers totaling Rs 7 billion – Rs 3 billion more than the initial issue target of Rs 4 billion. The Bank was able to issue the Sukuk at a very attractive pricing under Mudarabah arrangement and this is indicative of the strong brand value and standing of Meezan Bank. The Sukuk has been rated AA- (Double A-), by JCR-VIS Credit Rating Company Limited, an affiliate of Japan Credit Rating Agency, Japan. The Bank’s CAR now stands at a comfortable level of 14.9% as compared to 11.0% in December 2015.
By the Grace of Allah (SWT), Meezan Bank has continued its growth momentum and recorded profit after tax of Rs 4,114 million as compared to Rs 3,950 million in corresponding period last year. The Bank recorded Earnings per Share (EPS) of Rs 4.10. Non funded income registered a growth of 26% while fee, commission and brokerage income grew by 28%. The Bank’s CASA mix improved to 75% as compared to a CASA of 71% in December 2015 with current account contributing to 34% of the total deposits as compared to 32% in December 2015.
On asset side, Islamic financings and related assets grew by a remarkable 43% from September 2015 while SME/commercial and consumer financing (primarily Car Ijarah and Easy Home) grew by 107% and 62% respectively over the corresponding period last year.
The Bank maintained its position as the leading Islamic bank in Pakistan (amongst both Islamic as well as conventional banks) with a branch network of 551 branches in 143 cities.