Report
EUR 9.24 For Business Accounts Only

MEBL_CY19 Result Review, (AKD, Off the Analyst's Desk, Feb 12, 2020)

MEBL: CY19 Result Review                                                            (Inline)

 

·         Meezan Bank Limited (MEBL) announced its CY19 results where the bank reported an earnings of PkR12.12/sh vs. PkR6.97/sh in the same period last year. The result is in line with our expectation.

·         The bank also announced a dividend of PkR2/sh taking cumulative dividend for CY19 to PkR5/sh.

·         4QCY19 earnings consequently clocked in at PkR4.9bn (EPS: PkR3.68), +25.7/93.0% QoQ/YoY. Gross yield stood at 47.1% flat QoQ as bank continues to keep 'savings delta' unchanged, pulling up net spread income by 7.7%QoQ.

·         Together with stable contribution from 'other sources' of income, cost to income ratio slightly dived down to 43.4% vs. 45.9% in the previous quarter.

·         Provisions came in slightly higher than expectation which we attribute to impairment on equities as seen in other banks.

Underlying
Meezan Bank Ltd.

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.

Provider
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.

Analysts
Hamza Kamal

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