February 19th, 2015
The Board of Directors of Meezan Bank Limited in its meeting, held at Karachi on February 18, 2015 approved the financial statements of the Bank for the year ended December 31, 2014. The meeting was presided by H. E. Sheikh Ebrahim Bin Khalifa Al-Khalifa, Chairman of the Board. Vice Chairman of the Board Mr. Riyadh S. A. A. Edrees also attended the meeting.
The Board recommended distribution of 12.5% final cash dividend for the year 2014. This declaration, together with the earlier cash dividend of 15% paid in 2014, brings the total payout for the year to 27.5% and maintains the Bank’s unbroken payout record since its date of listing on the Stock Exchange.
The Bank has achieved significant growth in all business segments during 2014 and earned Profit-after-tax of Rs. 4.570 billion in 2014 compared to Rs. 3.957 billion recorded last year. The Earnings Per Share (EPS) increased to Rs. 4.56 from Rs. 3.95.
The Bank’s Deposits increased by 31% to Rs. 380 billion in 2014 while its financing portfolio grew by 38% to Rs. 176 billion. The Bank’s growth in both deposits and financings has far exceeded that of the industry which was 11% and 10% respectively. Furthermore, the non-funded business, which primarily includes Imports and Exports crossed Rs. 375 billion.
A significant achievement during the year was the successful acquisition of Pakistan operations of HSBC Bank, a leading international bank, adding 10 branches to the bank’s network. All assets and liabilities of HSBC Pakistan stand amalgamated into Meezan Bank and have now been converted into Shariah-compliant products. This is the second acquisition for Meezan Bank since it had acquired the banking operations of Societe Generale in Pakistan and converted them into Islamic banking modes through a very similar transaction in 2002.
In 2014, Meezan Bank’s branch network grew from 351 branches in 103 cities to 428 branches in 117 cities, after opening 67 new branches and acquiring 10 branches from HSBC. Meezan Bank is the largest Islamic Bank and also the 8th largest bank in 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 short-term rating of A1+ is the highest standard in short-term rating. The rating indicates sound performance indicators of the Bank. Meezan Bank is the only bank with AA credit rating in the Islamic banking industry in Pakistan.