Meezan Bank’s Profit after Tax grows by 92%

August 1st, 2011

Profit after Tax grows by 92%

The Board of Directors’ of Meezan Bank Limited in its meeting held on July 30, 2011 approved the financial statements of the Bank for the half year ended June 30, 2011. The Board also appointed Mr Abdullateef A. Al-Asfour as the Vice Chairman of Bank.

The Bank recorded robust growth of 92% in its half year after-tax profit which increased to Rs. 1,382 million from Rs. 719 million in the corresponding period last year. Comparative Earnings Per Share also increased to Rs. 1.72 from to Rs. 0.90. As a result of the strong profitability of the Bank, the Board approved a 10% interim cash dividend, continuing the Bank’s unbroken payout record since its date of listing on the Stock Exchange.

Deposits of the Bank increased by 13% to Rs 148 billion on June 30, 2011. The growth in deposits reflects the strong demand for Islamic financial products and the dominance of Meezan Bank in the Islamic Banking industry. The Board also reiterated its confidence in the Bank’s branch expansion strategy that has enabled it to remain at the forefront of the Islamic Banking sector in Pakistan.

The Bank has achieved growth in all business segments and consolidated its position as the leading Islamic Bank in Pakistan. The total assets of the Bank grew by 12% to Rs 173 billion over the half-year.  Significant growth was also recorded in Investments which increased by 61% to Rs. 89 billion mainly on account of investments in GoP Ijarah Sukuk issued by Government of Pakistan in the period under review.

During the period, the JCR-VIS Credit Rating Company Limited upgraded the Bank’s short term rating from A-1 (A-One) to A-1+ (A-One Plus), the highest standard in short-term rating. The long-term entity rating has been maintained at AA- (Double A Minus) with stable outlook. The rating indicates sound performance indicators of the Bank.

Meezan Bank has been consistently recognized as the best Islamic Bank in Pakistan by various local and international institutions over the past several years. The Bank won the award of ‘Best Islamic Bank in Pakistan’ by Islamic Finance News of RED money Group, Malaysia for 5 consecutive times from 2005 to 2010; ‘Best Islamic Financial Institution in Pakistan’ by Global Finance Magazine, New York from 2008 to 2011; ‘Best Islamic Bank in Pakistan’ by ASIA MONEY Magazine, Hong Kong for 2009, ‘Islamic Bank of the Year’ by the CFA Association of Pakistan for 2009 and 2010 and ‘Best Islamic Bank in Pakistan’ and ‘Best Islamic Trade Finance Bank in Pakistan’ by Asset Triple A Awards, Hong Kong.