Tag: Meezan Bank Limited

Karachi, May 03, 2019 (PPI-OT): Meezan Bank Pakistan’s leading Islamic bank and the Best Bank in Pakistan, has recently joined hands with Central Depository Company (CDC) – the sole securities (shares) depository in the country – to launch Shares Custody Services for its customers. Mr. Ariful Islam, Deputy CEO, Meezan Bank and Mr. Badiuddin Akber, Chief Executive Officer, CDC signed the Memorandum of Understanding (MoU) at Meezan Bank’s Head Office, Karachi. Also present at the occasion were Mr. Zia Ul Hasan – Group Head Operations, Meezan Bank, Mr. Shariq Naseem – Head of Product Development and Marketing, CDC and Mr. Ayub Baig, Manager Capital Market – Meezan Bank along with their respective teams.

The arrangement will allow Meezan Bank customers the facility to buy and sell shares and keep these shares in the safe custody of a CDC Sub-account managed by Meezan Bank. Meezan Bank’s Shares Custody Services will also allow customers to subscribe for the new issue of shares (i.e. IPO’s). The launch of Shares Custody Services aims to enhance outreach of CDC’s facilities in all parts of the country through the extensive network of 660 branches of Meezan in more than 180 cities across Pakistan.

Commenting on this occasion, the Deputy CEO of Meezan Bank, Mr. Ariful Islam said: “Meezan Bank is focused on providing innovative value-added services to its customers leveraging on state-of-the-art technology. At present, CDC investor account opening services are not available in small cities and remote areas. Meezan Bank’s Shares Custody Services will address this need by allowing its customers to maintain a formal CDC Investor Account for safe custody of shares and securities with the Bank.”

Also commenting on this occasion, CEO CDC, Mr. Badiuddin Akber added, “One of CDC’s strategic objectives is to continually increase its outreach to remote areas through collaboration with leading institutions. This is in line with the international best practice of providing depository services through banks. Our collaboration will provide millions of Pakistanis access to Pakistan’s Capital Market through the wide branch network of Meezan Bank. This is indeed a great step towards CDC’s aim to help increase the investor base of the stock market.”

For more information, contact:
Meezan Bank Limited
Meezan House, C-25 Estate Avenue,
SITE, Karachi, Pakistan
Tel: +92-21-38103500
Fax: +92-21-36406049
Website: www.meezanbank.com

Karachi, April 29, 2019 (PPI-OT): The Board of Directors of Meezan Bank Limited in its meeting, held at Karachi approved the condensed interim unconsolidated financial statements of the Bank and its consolidated financial statements for the quarter ended March 31, 2019. The meeting was presided by Mr. Riyadh S. A. A. Edrees – Chairman of the Board and Mr. Faisal A. A. A. Al – Nassar – Vice Chairman of the Board, was also present.

By the Grace of Allah (SWT), the Bank continued its growth momentum and posted excellent results for the quarter ended March 31, 2019. Profit after tax increased to Rs. 2,851 million from Rs. 1,915 million in corresponding quarter last year – a growth of 49% . The Earnings per Share (EPS) – on enhanced capital increased to Rs. 2.44 per share.

The Board has approved 10% interim cash dividend (Rs 1.00 per share) and 10% bonus shares in the meeting. Quarterly cash dividend has been approved for the first time in the history of the Bank and is in keeping with the Board desire to ensure that investors in Meezan Bank are well looked after. The Bank has maintained an unbroken payout record since the Bank’s listing on Stock Exchange in the year 2000.

The growth in profitability was driven by an increase of 57% in net spread primarily due to the Bank’s focus on maintaining a good quality high yield earning assets portfolio. Profit paid to depositors also doubled, as a result of increase in deposits and increase in depositors’ profit rates. The fees and commission income of the Bank grew by 18% driven by an increase in trade business volume handled by the Bank.

Administrative and operating expenses increased by 24% primarily due to rising inflation, rupee devaluation and increase in costs associated with new branches – an investment in the future. However, the rise in expenses was sufficiently absorbed by the growth in the Bank’s income resulting in improvement in the Banks income expense ratio. The Bank added 16 new branches to its network during the quarter bringing the total number of branches to 676 in 189 cities. The Bank is now the 7th largest Bank in terms of branch network as well as in terms of deposit base.

The investments portfolio increased to Rs. 219 billion from Rs. 124 billion in December 2018 – a growth of 77%. During the quarter, a consortium led by Meezan Bank successfully closed Pakistan’s first-ever energy Sukuk issued by the Power Holding Private Limited, a company wholly owned by the Government of Pakistan (GoP). The Sukuk is guaranteed by the GoP and is eligible for SLR for the purposes of the State Bank of Pakistan (SBP). The Bank is the largest investor in this Sukuk with a participation of Rs. 85 billion.

The Islamic financings and related assets portfolio closed at Rs. 494 billion with an ADR of 64%. The Bank maintained its financing exposure in all sectors and continued to actively pursue growth in Small and Medium Enterprise (SME) / Commercial and Consumer segment. The NPL ratio and NPL coverage ratio stood at 1.4% and 137% respectively. The Bank remains a well-capitalized institution with Capital Adequacy Ratio of 15.5%.

The VIS Credit Rating Company Limited (formerly JCR-VIS Credit Rating Company Limited), in 2018, assigned the Bank an Entity Rating of ‘AA+’ (Double A Plus) for the Long Term and ‘A1+’ (A-One Plus) for the Short Term with stable outlook. The Subordinated Tier II Sukuk and Additional Tier I Sukuk of the Bank has been assigned a credit rating of ‘AA’ (Double A) and ‘AA-’ (Double A Minus) respectively. These ratings represent sound performance indicators of the Bank.

For more information, contact:
Meezan Bank Limited
Meezan House, C-25 Estate Avenue,
SITE, Karachi, Pakistan
Tel: +92-21-38103500
Fax: +92-21-36406049
Website: www.meezanbank.com

Karachi, April 17, 2019 (PPI-OT): Meezan Bank, Pakistan’s leading Islamic bank and the Best Bank in Pakistan, has recently signed a Memorandum of Understanding with Regal Automobile Industries Limited to provide exclusive Shariah-compliant financing solutions and value-added services to its customers. Mr. Arshad Majeed – Group Head Consumer Finance, Meezan Bank signed the MoU with Mr. Sohail Usman, Chairman, Regal Automobile Industries Limited – in Karachi, along their respective senior team members.

Regal Automobile has recently entered into the Pakistani auto market, with a license to locally produce the DFSK (Dongfeng) vehicles originating from China, under the ‘Prince’ brand name. DFSK (Dongfeng) comes under the umbrella of Dongfeng Motor Corporation, the state-owned auto giant. As per the MoU, Meezan Bank will facilitate the provision of Shariah-compliant car financing solution while Regal Automobile’s brand ‘Prince’ will ensure priority delivery of Vehicles including Glory 580, K07 and C37 with after-sales support services to Meezan Bank’s customers across Pakistan.

Mr. Arshad Majeed, while speaking at the occasion, expressed his appreciation to Regal Automobile Industries for creating an opportunity to enhance customer experience by offering priority processing, fast track vehicle delivery as well as after-sales benefits. He further added: “As a leader in Islamic Car Finance in the country, Meezan Bank aims to enhance its product offering by actively working with new automobile manufacturers such as Regal Automobile Industries Limited to offer additional value-added services to its customers. We are hopeful that this recent alliance will prove to be mutually beneficial for both the organizations and help in reaching to a larger market.”

For more information, contact:
Meezan Bank Limited
Meezan House, C-25 Estate Avenue,
SITE, Karachi, Pakistan
Tel: +92-21-38103500
Fax: +92-21-36406049
Website: www.meezanbank.com

Karachi, March 20, 2019 (PPI-OT): Meezan Bank, Pakistan’s leading Islamic bank and the Best Bank in Pakistan – 2018 has recently signed a landmark agreement with Computer Research Private Limited (CR-PL) – a trusted Information and Communication Technology (ICT) solutions and services provider, for implementation of a new remittance processing system.

The signing ceremony was held at Meezan Bank’s Head Office, Karachi and was attended by Mr. Ariful Islam – Deputy CEO, Meezan Bank and Mr. Khalid Jameel Shamsi – CEO, CR-PL. Also present at the occasion were Mr. Shahid Anjum – Chief Marketing Officer and Mr. Muhammad Jawwad – Project Manager from CR-PL and Mr. Shahzad Abdullah – Head of Treasury and Home Remittances, Mr. Mehdi Abbas Nandwani – Unit Head Home Remittance and Mr. Faiz Ur Rehman – Group Head Information Technology and Digital Banking from Meezan Bank, with respective team members.

Under the said agreement, CR-PL has implemented a new remittance processing system that will enable the Bank’s Cash Over the Counter (CoC) customers to authenticate their remittance via biometric verification. The system will also enable payment automation of settlements and assist the Bank and its partners in client integration. The implementation of the new system will further enable the Bank to reduce the overall payment processing time. The Bank will hence be able to minimize risk and maintain effective compliance standards through integration with its centralized screening system for enhanced Customer Due Diligence (CDD).

Mr. Ariful Islam – Deputy CEO, Meezan Bank while speaking at the occasion, said, “Taking into account the needs of non-resident Pakistanis, Meezan Bank aims to bring a greater value proposition to its global clientele. The implementation of a new home remittance system is also an important step towards ensuring compliance of Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) policies in home remittance.

This is a commendable initiative taken by Meezan Bank that will provide the customer with a hassle-free and reliable service to send money back to their loved ones.” Mr. Khalid Jameel Shamsi, CEO – CR-PL also lauded Meezan Bank’s implementation of the new system, saying that it was heartening to see Pakistani banks staying up-to-date with technological advancement.

For more information, contact:
Meezan Bank Limited
Meezan House, C-25 Estate Avenue,
SITE, Karachi, Pakistan
Tel: +92-21-38103500
Fax: +92-21-36406049
Website: www.meezanbank.com

Karachi, March 11, 2019 (PPI-OT): The Board of Directors of Meezan Bank Limited in its meeting, held at Karachi on February 21, 2019 approved the audited unconsolidated financial statements of the Bank and its consolidated financial statements for the year ended on December 31, 2018. The meeting was presided by Mr. Riyadh S.A. A. Edrees – Chairman of the Board.

By the Grace of Allah (SWT), Meezan Bank has continued its growth momentum and recorded commendable results for the year 2018. Profit after tax increased to Rs 8.96 billion compared to Rs 6.31 billion last year reflecting an impressive growth of 42%. EPS of the Bank, on enhanced capital, increased to Rs 7.67 per share from Rs 5.56 per share in 2017. The return on average equity increased to 23.77% as compared to 19.26% in 2017.

The Board has recommended the final cash dividend of Rs 2.00 per share (20 %) for the year 2018 bringing the total payout for the year to Rs 3.5 per share (35%) as Rupee 1.5 per share i.e. 15% interim cash dividend was paid alongwith issuance of 10% Bonus Shares during the year. The Bank has maintained its unbroken payout record since the date of listing on the Stock Exchange.

During the year, the Bank successfully issued Additional Tier I sukuk of Rs 7 billion that has further strengthened the Bank’s Capital Adequacy Ratio (“CAR”) and will support the future growth plans of the Bank. The Bank’s CAR now stands at a comfortable level of 14.55% – well above the minimum mandatory level of 11.90% for the year 2018. The Bank’s net spread grew by 36% due to the Bank’s continued focus to increase volume of high yield earning assets portfolio and its re-pricing while simultaneously maintaining optimal cost of funds.

Financings of the Bank crossed Half a Trillion Rupee benchmark and closed at 513 billion, as compared to Rs 420 billion in 2017. Advance to Deposits Ratio (ADR) of the Bank grew to 65% from 63% in 2017. The Bank increased its financing exposure in all sectors while simultaneously maintaining asset quality and ensuring all the risk parameters are met. One of the lowest non-performing financing ratio in the Banking Industry of 1.34%, compared to an average of 8% for the Banking Industry as a whole is a testimony to the stringent risk acceptance parameters of the Bank. The Bank maintains a comfortable non-performing financings coverage ratio of 139%. With a diversified product base, the Bank is well positioned to cater to all financing needs of our customers in a Shariah compliant manner.

Deposits of the Bank grew by a robust 18%, closing at Rs 785 billion from Rs 667 billion in 2017 as compared to average deposits of Banking Industry grew by 8%. The average current account deposits of your Bank grew by 24%. During the year, the Bank opened 59 new branches bringing its geographical network to 660 branches in 181 cities. The Bank maintained its position as the leading Islamic bank in Pakistan (amongst both Islamic as well as conventional banks) as well as the fastest growing Bank in the industry.

The fee and commission income of the Bank grew by 26% primarily due to increase in the trade business volume handled by the Bank which crossed a Trillion Rupee Landmark and grew by an impressive 43%. The increase in fee and commission income was also duly supported by a strong growth in debit card related fee and branch banking income.

Administrative and other operating expenses increased to Rs 19.7 billion from Rs 16.8 billion primarily due to rising inflation, rupee devaluation and increase in costs associated with new branches, however, the rise in expenses is sufficiently absorbed by the growth in the Bank’s income resulting in net improvement in income efficiency ratio by 4%.

For more information, contact:
Meezan Bank Limited
Meezan House, C-25 Estate Avenue,
SITE, Karachi, Pakistan
Tel: +92-21-38103500
Fax: +92-21-36406049
Website: www.meezanbank.com

Karachi, February 22, 2019 (PPI-OT): Meezan Bank, Pakistan’s leading Islamic bank and the Best Bank in Pakistan has recently signed a Memorandum of Understanding with Master Motors Limited (MML) and Master Motor Corporation Pvt Limited (MMCL). Both the companies are part of Master Group – makers of Master Molty Foam. MML has recently signed a Joint Venture agreement with the reputed and no. 1 Chinese passenger car brand “CHANGAN”.

Under this MoU, Meezan Bank, MML and MMCL have agreed on a joint campaign to promote the ‘Changan Karvaan’ Passenger minivan through Meezan Bank’s flagship auto finance product ‘Car Ijarah’. The ‘Karvaan’ is a modern and spacious multi-functional minivan for the middle-income group with a powerful 1.0L engine, 7 spacious seats and powerful Dual AC. Meezan Bank will provide financing for this vehicle through an attractive financing package including a range of additional services and benefits such as early vehicles delivery as well as free initial services.”

The signing ceremony took place at Meezan House, Meezan Bank’s Head Office, Karachi. Mr. Irfan Siddiqui – President and CEO, Mr. Arshad Majeed – Group Head Consumer Finance of Meezan Bank Ltd. Mr. Nadeem Malik – Chairman and Mr. Danial Malik – CEO Master Motors Limited attended the ceremony with their respective teams. MOU has been signed by Mr. Irfan Siddiqui and Mr. Nadeem Malik. Mr. Irfan Siddiqui – President and CEO of, Meezan Bank lauded the agreement as a welcome move for Pakistan’s automotive industry and said that it will boost healthy competition in the market.

For more information, contact:
Meezan Bank Limited
Meezan House, C-25 Estate Avenue,
SITE, Karachi, Pakistan
Tel: +92-21-38103500
Fax: +92-21-36406049
Website: www.meezanbank.com

Karachi, January 25, 2019 (PPI-OT): Meezan Bank plans to promote KIA Lucky Motors’ cars through its Sharia-based auto finance products. In this regard, it has signed a Memorandum of Understanding with KIA Lucky Motors Pakistan Ltd – a collaboration between KIA Motors Corporation, South Korea and the Yunus Brothers Group, Pakistan, formed to start vehicle assembly/manufacturing operations in Pakistan.

Under this MoU, both the parties have agreed upon a joint promotion campaign for the KIA Grand Carnival. Meezan Bank has created a prospect for providing priority vehicle delivery to its customers across Pakistan. KIA is one of the world’s fastest-growing automobile manufacturers.

Ariful Islam, Deputy CEO of Meezan Bank, while speaking at the signing ceremony said:

Meezan Bank Car Ijarah has been developed to comply with the principles of Shariah for providing convenient car financing. The bank follows a strategy of maintaining stringent credit criteria and fast deliveries to maintain optimal customer service in line with the service values of the Bank.

Irfan Siddiqui, President, and CEO of Meezan Bank further added:

Our agreement with KIA Lucky Motors Pakistan will make the luxury car, Grand Carnival more affordable to a large population of brand lovers. The bank, in turn, will get the opportunity to couple this provision with a range of additional services and benefits including faster vehicles delivery as well as free initial services for its customers.

The signing ceremony took place at Meezan House, Meezan Bank’s Head Office, Karachi. Mr. Irfan Siddiqui – President and CEO and Mr. Ariful Islam – Deputy CEO of Meezan Bank, Mr. Asif Rizvi – CEO and Mr. Muhammad Faisal – COO of KIA Lucky Motors attended the ceremony along with their respective teams. MoU was signed by Mr. Ariful Islam and Mr. Muhammad Faisal.

For more information, contact:
Meezan Bank Limited
Meezan House, C-25 Estate Avenue,
SITE, Karachi, Pakistan
Tel: +92-21-38103500
Fax: +92-21-36406049
Website: www.meezanbank.com