Meezan Bank Limited (MEBL): 1Q2020 EPS at Rs3.91, up 69% YoY (higher than industry expectations)
- Meezan Bank Limited (MEBL) posted 1Q2020 consolidated earnings of Rs3.91/share, up 69% YoY and 6% QoQ.
- The bank did not announce any payout with the result as per the guidance given by the Central Bank in April-2020.
- The result came in higher-than-industry expectations due to higher-than-expected Non funded income, which was led by Forex Income and Gain on Securities.
- Net Interest Income (NII) for the quarter settled at Rs14.7bn (up 66% YoY), owing to 64% YoY increase in Markup Earned.
- The bank’s Non Mark-up income increased by 53% YoY and 21% QoQ. The bank booked Gain on Securities of Rs723mn, which we believe is largely driven by Gain on Sale of some of its Pakistan Energy Sukuk 1 holdings.
- The Forex Income also recorded an increase of 2.3x YoY and 12% QoQ.
- On the expense side, the bank’s expenses increased by 28% YoY, however on a QoQ basis they declined by 3%.
- Provisions arrived at Rs1.6bn (-3% QoQ), most likely driven by the loan book.
Effective tax rate of the bank clocked in at 42% for the quarter.
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.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.