Pakistan’s first full service Islamic bank, Meezan Bank,
posted earnings of Rs5 billion for the year ended 31st December 2015,
up 9.9% from the profit of Rs4.5 billion recorded in the preceding year. Along
with the approval of financial accounts, the Board of Directors gave nodded
distribution of 12.5 percent final dividend among the shareholders. This is in
addition to an interim dividend of 17.5 percent paid earlier, taking the full
year payment to 30 percent.
The increase in the bank's profitability is attributable to improved
net spread after provisions. The net mark up income after provisions was stated
at Rs17.6 billion, up 36.8% from a year ago. The expansion in its spread was
mainly on the back of a significant increase in the profit earned on Islamic
financing, investments and placements. It rose almost 15% YoY to Rs33.1 billion
at the end of 2015. In contrast, other income of Meezan Bank registered a YoY
decline in 2015, hurting its bottom line. It amounted to Rs4.6 billion, down
3.3% from a year ago. The major reason for the decrease in other income was the
drop of 70.2% in the net gain on sale of securities in 2015. In addition, the
bank's income from dealing in foreign currencies also decreased by 9.5% to
Rs1.4 billion.
