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MEBL: CY19 Analyst briefing, (AKD, Off the Analyst's Desk, Feb 14, 2020)

MEBL: CY19 Analyst briefing                                              


Meezan Bank Limited (MEBL) held analyst briefing today to discuss its CY19 result and outlook for the bank. To recall, MEBL reported CY19 earnings of PkR11.84/sh vs. PkR6.97/sh in the same period last year. Accompanying result, the bank had announced a final dividend of PkR2/sh taking cumulative dividend for CY19 to PkR5/sh.

Key highlights of the briefing:

·      The bank booked a provision of PkR4.1bn in CY19 vs. PkR1.2bn in the same period last year. Dissecting, MEBL booked PkR1.6bn as a specific provision while PkR1.5bn was in lieu of general provision (conservatively booked foreseeing stress in certain loan portfolios). Apart from credit costs, the management booked PkR1.1bn as impairment on equities.

·      The bank recorded a hefty surplus of PkR9.4bn on energy Sukuk-1. During the year, the bank also realized gain by selling a portion of Sukuk-I. Recall that the bank invested PkR85bn initially.

·      CAR of the bank stood at 16.58% as of Dec’19 vs. 14.5% in Dec’18.

·      Regarding power Sukuk-II of PkR200bn, the management stated that the bidding process would be completed today.

·      The bank plans to add 150 branches in CY20, which will take the total branch network to 910 branches.

·      The bank expects FX income to normalize going forward (CY19: PkR2.6bn).

Meezan Bank Ltd.

Meezan Bank Limited. Meezan Bank Limited is an Islamic commercial bank. The Bank is engaged in corporate, commercial, consumer, investment and retail banking activities. It offers a range of Islamic banking products and services through a retail banking network of over 550 branches in approximately 140 cities to its corporate, commercial and small and medium-sized enterprise (SME) customers based on their financial requirements. It provides personal banking, business banking, premium banking and branchless banking. The Bank also offers Meezan Rupee Current Account, Karobari Munafa Account, Meezan Rupee Savings Account, Meezan Business Plus Account, Meezan Bachat Account, Meezan Kids Club Account, Meezan Teens Club Account, Meezan Asaan Current Account, Meezan Kafalah, Certificates of Islamic Investment, Meezan Amdan Certificate and Dollar Mudarabah Certificate. It has assets in agriculture, food, forestry and fishing; cement, and others. The Bank operates only in Pakistan.

AKD Securities Limited
AKD Securities Limited

AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.

AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.

Hamza Kamal

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