Meezan Bank (MEBL): 3Q2018EPS of Rs1.8, 36% YoY (-4% QoQ); (In line with expectation)
- Meezan Bank Limited (MEBL) announced PAT of Rs2.1bn, (EPS Rs1.8, up 36% YoY), broadly in line with expectations. Growth in income was led by increase in net spread earned, up by 25% YoY.
- Rise in net spread earned is due to the tightening monetary policy, where profit earned has grown by 28%. Being an Islamic bank, MEBL has the advantage of non-applicability of minimum deposit rate (MDR) which has supported growth in its net spread.
- Total provisioning decreased by 55% YoY due to reduction in provisions for diminution in value of investments from Rs230mn in 3Q2017 to Rs81mn in 3Q2018.
- Other income of the bank increased by 9% YoY as fee income increased by Rs153mn YoY to Rs1.2bn in 3Q2018 while Bank’s other expenses rose by 10% YoY to Rs4.8bn in 3Q2018.
- In 9M2018, earnings of the bank clocked in at Rs5.34/share, up 32% YoY due to 27% higher net spread earned. The primary reason for this increase in earnings is the rising interest environment where policy rate has gone up by 275bps in 2018.
- Key risks for the bank include 1) deterioration in Pakistan macros, 2) uptick in provisioning charge, 3) lack of investment avenues & 4) lower than expected rate hike.
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).
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