October 27th, 2017
The Board of Directors of Meezan Bank in its meeting, held at Karachi on October 25, 2017 approved the unconsolidated financial statements of the Bank and its consolidated financial statements for the nine months period ended September 30, 2017. The meeting was presided by Mr. Riyadh S. A. A. Edrees – Chairman of the Board, Mr. Faisal A. A. A. Al – Nassar – Vice Chairman of the Board also attended the meeting.
The Board noted with satisfaction that on October 04, 2017 the Bank successfully completed the 6% Right Issue of shares to the existing shareholders at a price of Rs 50 per share (inclusive of Rs 40 as premium per share). The Bank’s equity (including share premium) has increased by Rs 3 billion after the Right Issue. This increase in equity will support the Bank’s growth plans. The Bank’s Capital Adequacy Ratio now stands at a comfortable level of 13.6%.
By the Grace of Allah, Meezan Bank has maintained its growth momentum and recorded good results for the nine months period ended September 30, 2017. Profit after tax increased to Rs 4,717 million from Rs 4,114 million in corresponding period last year reflecting a healthy growth of 15%. The Earnings per Share (EPS) of the Bank increased to Rs 4.70 as compared to Rs 4.10 in the corresponding period last year. The Bank maintained its position as the leading Islamic bank in Pakistan (amongst both Islamic as well as conventional banks) with a branch network of 571 branches in 146 cities.
Net income from financing portfolio grew by 17% primarily due to the healthy growth in the Bank’s financings portfolio, while its fee income increased by 70% over the corresponding period last year. Trade business (import and export) volume handled by the Bank grew by 42% to half a trillion landmark as against Rs 353 billion in the corresponding period last year. Total deposits crossed Rs 600 billion benchmark to close at Rs 607 billion. The Bank continued to maintain optimal cost of funds through strong relationship management and better customer experience.
The JCR-VIS Credit Rating Company Limited, an affiliate of Japan Credit Rating Agency, Japan has reaffirmed the Bank’s long-term entity rating of AA (Double A) and short-term rating at A1+ (A One Plus) with stable outlook. The short-term rating of A1+ is the highest standard in short-term rating. The rating indicates sound performance indicators of the Bank.