Meezan Bank has posted Rs17.1 billion profit after tax in the half year ended June 30, 2022, which is 36 per cent high as compared to Rs12.6 billion in the corresponding period last year.
The board of directors approved the financial statements during a meeting held under the chairmanship of the board Riyadh S.A. A. Edrees, Vice Chairman Faisal Al-Nassar and other high-ups.
The board has approved an interim cash dividend of Rs1.75 per share (17.5 per cent) and 10 per cent bonus shares. This brings the total cash dividend payout for the half year to Rs 3.50 (35 per cent) per share along with 10 per cent bonus shares.
According to a press release issued here, the Meezan Bank’s profit after tax increased to Rs17.1 billion in the first half of the ongoing year compared to Rs12.6 billion in the corresponding period last year, reflecting a 36 per cent growth – despite taxation charge at 49 per cent (inclusive of 10 per cent super tax) in the current half year pursuant to Finance Act 2022.
The bank was able to manage its tax charge efficiently by maintaining an ADR of over 50 per cent and accordingly, did not attract any additional tax charge relating to ADR below 50 per cent.
Total deposits of the bank closed at Rs1.57 trillion which is 8 per cent high than last year. During the half year, the bank opened 29 new branches, bringing its geographical network to 931 branches in more than 300 cities.
Meezan Bank’s ATM network crossed the 1,000 ATMs milestone during the half year and its banking app remained the highest-rated mobile app in the banking industry on both Google Play Store and Apple Store.
The bank’s net spread grew by 46 per cent to Rs45.4 billion from Rs31.2 billion in the corresponding period last year, primarily due to volumetric growth in earning assets and a higher average underlying policy rate during the half year.
The bank’s non-funded income also recorded a growth of 57 per cent closing at Rs10.7 billion as compared to Rs6.8 billion in the corresponding period last year mainly due to debit card-related fee income, higher trade-related income and branch banking income.
Total assets of Meezan Bank crossed Rs2.4 trillion, registering a 27 per cent growth (Rs 514 billion), over December 2021 (Rs 1.9 trillion).
The bank’s non-performing financing ratio remained at an exemplary level of 1.7 per cent and it maintained a comfortable level of provisions against its non-performing financings with a coverage ratio of 139 per cent – one of the highest in the banking industry.
The investment portfolio of Meezan Bank doubled, growing to Rs1.2 trillion from Rs620 billion last year after an investment of more than Rs 600 billion in the Government of Pakistan Ijarah Sukuk.
During the half year, the bank also made an additional general provision of Rs750 million against any potential non-performing financings in view of the current ongoing economic slowdown.