Meezan Bank Limited has recorded a net profit of Rs12.90 billion which is an increase of 11.39%. The earning per share (EPS) has been calculated at Rs9.
Along with the result, the Board of Directors (BoD) of the bank recommended a semi-annual dividend of Rs1.5 per share, taking cumulative payout to Rs3.0 per share.
Further, BoD also offered bonus shares in the proportion of 15 shares for every 100 shares held i.e., 15%.
This improvement in profits was due to non-funded income (NFI) and lower provisions.
According to the financial statement, the bank witnessed a contraction of 3.6% in net spread earned that clocked in at Rs31.2bn as a result of a 13.3% decline in return earned on Islamic financing and related assets during 1HCY21.
In contrast, during 1HCY21, non-funded income (NFI) of the bank jumped up by 35.6% YoY mainly on account of higher fee and commission income (up by 64% YoY), dividend income (up by 2.2 times YoY) and FX income (up by 24% YoY). However, capital gain of securities plunged by 54% YoY to Rs445mn.
Among other line items, operating expenses of the bank surged by 14% YoY whereas provision expenses declined by 86% YoY, supporting bottom-line growth.
