The Board of Directors of Meezan Bank Limited in its meeting, held on August 17, 2020 approved the financial statements of the Bank for the half year ended June 30, 2020. 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 was also present.
The Bank’s deposits crossed a trillion Rupees benchmark for the first time in its history, registering a growth of 12%. The Bank has opened 38 new branches in 19 new cities bringing its geographical network to 800+ branches in more than 240 cities across Pakistan. This extensive branch network is complimented with a comprehensive array of digital services, including Internet Banking, Mobile App and other Alternate Distribution Channels for delivery of seamless Shariah-compliant banking services to its customers across Pakistan and around the globe.
The Bank’s profit after tax grew to Rs 11.7 billion, an impressive growth of 67% as compared to the same period last year. The Board has approved 10% bonus shares for the half year ended June 30, 2020.
The Bank’s non-funded income grew by 13% due to higher foreign exchange income and capital gain. Administrative and other operating expenses increased to Rs 14.9 billion from Rs 11.7 billion in corresponding period last year primarily due to the costs associated with opening of 120 new branches since June 2019.
Total Assets of the Bank grew by 12% to Rs 1.26 trillion. Investments grew by 36% to Rs 306 billion mainly due to investment in GoP Ijarah Sukuk and Pakistan Energy Sukuk – II. The Bank remains a well-capitalized institution with Capital Adequacy Ratio of 20.89% as at the June 30, 2020 – which is well above the minimum regulatory requirement of 11.50%.
The Bank’s financing portfolio decreased slightly than last year mainly due to overall slowdown in economic activity and Bank’s cautious lending approach. Recognizing stresses in certain sectors of the economy due to the COVID-19 outbreak, an additional General Provision of Rs 1 billion was approved by the Board against any potential non-performing financings, bringing the Bank’s non-performing financings coverage ratio to 129% – one of the highest in the banking industry while its infection ratio at 2.4% is one of the lowest in the industry.