The Board of Directors of Meezan Bank in its meeting, held at Karachi on August 23, 2016 approved the unconsolidated condensed interim financial statements of the Bank and its consolidated financial statements for the half year ended June 30, 2016. The meeting was presided by Mr. Riyadh S.A.A. Edrees, the Chairman of the Board.
By the Grace of Allah (SWT), Meezan Bank has maintained its growth momentum and crossed the deposit milestone of Rs 500 billion. The Bank recorded profit after tax of Rs 2,686 million as compared to Rs 2,677 million in the corresponding period last year despite the lower discount rates in the current half year while Earnings Per Share (EPS) of the Bank stood at Rs 2.68. The Bank’s non funded income registered a growth of 28% with fee, commission and brokerage income contributing to 47% of the total non funded income.
The Bank’s CASA mix improved to 75% as compared to a CASA of 71% in December 2015. On the asset side, Islamic financings and related assets grew by a remarkable 56% from June 2015 and 9% from December 2015 closing at Rs 225 billion. The Bank maintained a comfortable NPL coverage ratio of 118%. The trade business volume handled by the Bank also grew by 20% to Rs 241 billion as against Rs 201 billion in the corresponding period of last year.
The administrative expenses recorded an increase of 16% over corresponding period last year mainly due to 123 new branches added during last year, the largest number of branches added in a year in the Bank’s history. The Bank maintained its position as the leading Islamic bank in Pakistan with a branch network of 551 branches in 143 cities.
The Board has approved an interim cash dividend of Rs 1.75 per share (i.e. 17.5%), for 2016, maintaining the Bank’s unbroken payout record since its listing on the Stock Exchange.
The Bank is in the process of issuing Tier II subordinated Sukuks of Rs 7 billion to support its future growth strategy and meet Basel III requirements. The Sukuk issue is expected to be completed before the end of the third quarter which will improve the Bank’s capital adequacy ratio.
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. Meezan Bank is the only Islamic bank in Pakistan with AA and A1+ credit rating.