In the first half of 2023 (1HCY23), MEBL reported a Profit After Tax (PAT) of PKR 32.6 billion, marking a remarkable 90% year-on-year (YoY) growth, with a Return on Equity (ROE) exceeding 52%. This impressive performance was underpinned by a 99% YoY growth in net spreads and a 26% YoY increase in fee income. The bank maintained an efficient cost-to-income ratio of 31.5%.

Alongside the financial result, bank announced higher than expected interim cash dividend of PKR 4/share in 2Q2023, taking 1H2023 dividend to PKR 7/share

As of June 2023, Meezan Bank Limited (MEBL) commands a 7.2% share of the banking industry’s deposits, serving over 3.5 million customers through its network of 982 branches. MEBL is not only Pakistan’s most profitable bank but also the most valuable in terms of market capitalization.

MEBL holds a significant 33% share of deposits in Pakistan’s Islamic Banking industry. In the current calendar year (CY23), the bank has added 20 new branches.

Total deposits have reached PKR 1.9 trillion as of June 2023, demonstrating a compounded annual growth rate (CAGR) of 34% since its inception, with 70% of these deposits attributed to individuals. MEBL’s current account mix comprises 47%, with an impressive Current and Savings Account (CASA) ratio of 88%.

Gross financings have surged by 26% YoY, with 78% of the portfolio dedicated to corporate customers. The Gross Advances to Deposit Ratio (ADR) stands at 54.5%. The Non-Performing Loan (NPL) ratio remains low at 1.5%, with a substantial coverage of 172%. Provisions amounting to PKR 2.5 billion were booked in anticipation of future asset quality challenges, emphasizing a focus on credit quality in future lending.

The bank’s investment portfolio includes PKR 1.2 trillion in Government of Pakistan (GOP) Sukuk, PKR 141 billion in Energy Sukuk, and PKR 20 billion in other investments. Government Investment Securities (GIS) make up 21% of the mix, while floating accounts for 79%. The average portfolio yield hovers around 16-17%.

Trade business volume contracted by 9% during the period due to adverse macroeconomic conditions.

On the digital front, as of June 2023, MEBL has issued 2.97 million debit cards, with 1.65 million active mobile app users. Digital transactions have gained substantial traction, accounting for 94%, 93%, and 85% of bill payments, funds transfers, and cash withdrawals, respectively. Digital throughput is primarily composed of approximately 85% from Mobile/Internet Banking, 13.5% from ATMs, and 1.5% from debit cards.

Capital Adequacy Ratio (CAR) stands strong at 21.01% as of June 2023.

Rsmn2Q20232Q2022YoYQoQ1H2023YoY
Profit earned101,03250,185101%23%182,985107%
Profit on deposits51,49926,20097%26%92,407116%
Net Spread earned49,53323,985107%21%90,57899%
Provision1,50496156%-29%3,634206%
Total other income5,1106,358-20%32%8,976-16%
Total other expense16,38910,84051%10%31,32648%
P BT36,75018,54298%32%64,59492%
Taxation19,58810,62884%58%32,00893%
PAT17,1617,914117%11%32,58690%
EPS9.64.4  18.2 

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