Half year ended June 30, 2022: Meezan Bank profit after tax increases to Rs17.1bn

KARACHI: The Board of Directors of Meezan Bank approved the financial statements of the Bank for the half year ended June 30, 2022. The meeting was chaired by Riyadh S.A. A. Edrees – Chairman of the Board, Faisal A. A. A. Al - Nassar – Vice Chairman of the Board was also present.

The Board has approved interim cash dividend of Rs 1.75 per share (17.5pc) and 10 percent bonus shares. This brings the total cash dividend payout for the half year to Rs 3.50 (35pc) per share along with 10 percent bonus shares. The bank’s profit after tax increased to Rs 17.1 billion compared to Rs 12.6 billion in the corresponding period last year, reflecting a 36 percent growth despite taxation charge at 49 percent (inclusive of 10 percent 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 percent and accordingly, did not attract any additional tax charge relating to ADR below 50 percent.

Total deposits of the bank closed at Rs 1.57 trillion – an 8 percent growth over last year. During the half year, the bank opened 29 new branches, bringing its geographical network to 931 branches in more than 300 cities. The bank’s ATM network crossed the 1,000 ATMs milestone during the half year. The bank’s mobile banking app remains the highest-rated mobile app in the banking industry on both Google Play Store and Apple App Store.

The Bank’s net spread grew by 46 percent to Rs 45.4 billion from Rs 31.2 billion in corresponding period last year, primarily due to volumetric growth in earning assets and higher average underlying policy rate during the half year.

The bank’s non-funded income also recorded a growth of 57 percent closing at Rs 10.7 billion as compared to Rs 6.8 billion in corresponding period last year mainly due to debit card related fee income, higher trade related income and branch banking income.

Total assets of the bank crossed Rs 2.4 trillion, registering a 27 percent 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 percent. The bank maintains a comfortable level of provisions against its non-performing financings with a coverage ratio of 139 percent - one of the highest in the banking industry.

The investments portfolio of the bank doubled, growing to Rs 1.2 trillion from Rs 620 billion last year after investment of more than Rs 600 billion in GoP Ijarah Sukuk. During the half year, the Bank made additional general provision of Rs 750 million against any potential non-performing financings in view of the current ongoing economic slowdown.

Copyright Business Recorder, 2022