corporate results: Meezan Bank’s earnings up 18.8%

Board approves interim cash dividend of Rs1.75 per share.

KARACHI:

Meezan Bank recorded earnings growth of 18.8% in the first six months of 2015, as its after-tax profit increased to Rs2.6 billion for January-June.

According to financial results posted on the stock exchange website on Tuesday, Meezan Bank’s earnings per share for the six months remained Rs2.67 as opposed to Rs2.25 at the end of the same period of the last year.

Deposits of the bank increased 14% from Rs380 billion in December 2014 to Rs435 billion in June, a statement by Meezan Bank said.

The board of directors approved an interim cash dividend of Rs1.75 per share, or 17.5%, maintaining the bank’s pay-out record since its listing on the stock exchange in 2000.

Last month, Meezan Bank entered into an agreement with HSBC Bank Oman SAOG to acquire its banking business comprising of a single branch in Pakistan through a process of amalgamation. The amalgamation is expected to be completed during the second half of the current year.

Meezan Bank has witnessed deposit growth of 31% per annum during the last three years. Its plan to add 122 branches in 2015 (versus 67 in 2014) is expected to continue to support deposit growth of the bank.

Meezan Bank’s net spread after provisions for Jan-Jun remained Rs9.1 billion, up 48% from Rs6.1 billion a year ago.

Published in The Express Tribune, July 29^th, 2015.

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