Meezan Bank Ltd has recorded a robust growth of 92 percent 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 of the bank also increased to Rs 1.72 from to Re 0.90.
As a result of the strong profitability of the bank, the Board approved a 10 percent interim cash dividend, continuing the bank's unbroken payout record since its date of listing on the stock exchange. The Board of Directors' of the bank in its meeting held on July 30, 2011 approved the financial statements for the half year ended June 30, 2011. The board also appointed Abdullateef A Al-Asfour as Vice Chairman of the bank. During this period, the deposits of the bank increased by 13 percent 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. Total assets of the bank grew by 12 percent to Rs 173 billion over the half-year.
Significant growth was also recorded in investments which increased by 61 percent 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.-PR