During the first nine months of this year, Meezan Bank grew by 8% to Rs. 19 billion.
In addition to the Rs3/share cash dividend already declared, the bank announced an interim cash distribution of Rs1.5/share.
According to Topline Securities analysts, despite lower margins and a lower policy rate in 2021, the bank’s profitability remained solid due to significant growth in deposits and an increase in low-cost Current and Saving Accounts (CASA).
MEBL’s total provisioning expense in the third quarter of 2021 was Rs121 million, down 89 percent year on year, and remained lower-than-expected due to an improvement in the non-performing loans ratio.
In the third quarter of 2021, the bank’s other income increased by 62 percent year on year to Rs3.5 billion, owing to robust rise in fee income and foreign exchange income.
During the quarter, fee and commission income climbed by 61% YoY to Rs2.5 billion, while foreign exchange income increased by 78% YoY to Rs544 billion.
The bank’s other expenses increased 14 percent year on year to Rs8.8 billion, in keeping with its historical trend. As a result, the bank’s cost-to-income ratio increased 300 basis points year over year to 43% in the third quarter of 2021.