August 8th, 2024
The Board of Directors of Meezan Bank, in its meeting held in Islamabad on August 8, 2024 approved the financial statements of the Bank and its consolidated financial statements for the half year ended June 30, 2024. The meeting was chaired by Mr. Riyadh S.A.A. Edrees – Chairman of the Board, Mr. Faisal A. A. A. Al-Nassar – Vice Chairman of the Board was also present.
The Bank posted a Profit After Tax (PAT) of Rs 51.8 billion, with Return on Average Equity (ROAE) exceeded 50% – reflecting the Bank’s steadfast commitment to enhancing shareholder value. Concurrently, basic Earnings Per Share (EPS) also demonstrated a notable 59% growth relative to June, 2023. The Board approved a cash dividend of Rs 7 (70%) per share for the second quarter bringing the total dividend payout to Rs 14 (140%) for the half year. The Bank maintains a strong capital position with a Capital Adequacy Ratio of 24.68%, well above the regulatory minimum requirement of 11.50%. Additionally, Meezan Bank remains the Most Valuable Bank in Pakistan with market capitalization of $1.5 billion.
The net spread of the Bank increased to Rs 137.9 billion, up from Rs 90.6 billion in the same period last year, owing to both expanded volumes and higher average benchmark rates. Additionally, non-funded income reached Rs 11.7 billion compared to Rs 9 billion during the corresponding period last year. This increase was driven by substantial rise in debit card transactions, branch banking activities, and trade-related income.
Gross financings stood at Rs 1.15 trillion, marking a significant increase from the year-end figure of Rs 992 billion in 2023. The Bank also exceeded budgeted expectations in terms of non-performing loans (NPLs) and recoveries. As of the end of the half year, the non-performing financing to gross financings ratio (NPL ratio) was below 1.5% which is one of the lowest in the industry. Furthermore, the Bank maintains non-performing financing coverage ratio of 192%, reflecting its robust risk mitigation strategies and conservative credit management approach.
Meezan Bank is one of the largest banks in Pakistan in terms of deposits, which closed at Rs 2.4 trillion by mid-year 2024. In the first half of 2024, Meezan Bank’s Savings Accounts (SA) deposit portfolio surpassed the Rs 1 trillion mark. The Current and Savings Accounts (CASA) deposit portfolio also saw notable growth, rising 10% to Rs 2.2 trillion, which constitutes 90% of the Bank’s total deposit portfolio. The Bank continued to maintain its leadership position in Roshan Digital Account (RDA) with a market share of 26% in terms of total RDA inflows in the banking industry of Pakistan.
Meezan Bank has a robust physical presence with over 1,000 branches across 335 cities, complemented by an extensive network of more than 1,100 ATMs nationwide. Additionally, the Bank’s Mobile Banking App remains at the forefront of digital innovation, continuously enhancing the customer experience and supporting the growing trend towards digital banking.