Meezan Bank turns into Rs. 1 trillion Asset Bank

The Mint PK

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Meezan Bank turns into Rs. 1 trillion Asset Bank

  • Meezan bank announced Half Year 2019 net profit of Rs 7 billion marking an increase of 64%YoY
  • Meezan Bank Total assets reached Rs. 1 trillion turning it into 6th largest bank in Pakistan

Meezan Bank (MEBL) notified the stock exchange with its Half Year Financial Results where it posted Net Profit of Rs. 7 billion as compared to Net Profit of Rs. 4.28 billion in last year marking a significant increase of 63%YoY. MEBL also announced interim dividend of Rs.1/share taking half-year dividend payout to Rs. 2/share.

Meezan bank is on track to post record profitability this Year. Net Interest Income increased by 67% to Rs. 20.76 billion. Non-Interest Income also increased by 17% to Rs. 5.1 billion primarily led by massive Fee and Commission Income. Core Banking Operations has remained strong during the period.

This remained the highest ever Half Year Profit posted by the bank in its history as Meezan Bank prepares to grow beyond its historical performance.

Total Assets of the Bank grow to Rs. 1.007 trillion making Meezan bank 6th largest bank in Pakistan. The core banking performance is expected to increase in the second half of the year as Assets Re-pricing occurs at higher rates going onwards. MEBL increased its Investment Book to Rs. 220 billion as its invested Rs. 85billion in Pakistan Energy Sukuk-I, while a reduction in Loan Book was witnessed which declined by 6% to Rs. 483 billion.

The market has taken the announcement of dividend as positive news as it points towards healthy Capital Base and ample liquidity for Meezan Bank. Furthermore, further increase in dividend is also expected as Net Profit rises in the near future.

During the period, Bank increased its CASA ratio to 74%, marking an increase of 105bps. Total Deposits now stands at Rs. 841 billion marking an increase of Rs. 56billion.

Meezan Bank Outlook

Meezan Bank is on its way to post record Profitability in 2019 owing to Increased Interest Rate scenario, Lower Deposits Cost and Increased Banking Assets. The Mint PK estimates Meezan bank’s Profitability to cross Rs. 14.5 billion (EPS: 11.2)  in 2019.

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