Meezan Bank Limited (MEBL) announced its 9MCY21 results today

· Meezan Bank Limited (MEBL) announced its 9MCY21 results today where the bank reported earnings of PkR20.0bn (EPS: PkR12.1) compared to PkR18.5bn (EPS: PkR11.2) in the same period last year. The result came in line with expectations.

· Together with the result, the bank announced a cash dividend of PkR1.5/sh, taking cumulative cash dividend for the year to PkR4.5/sh in addition to a bonus of 10%.

· On a quarterly basis, 3QCY21 earnings stood at PkR4.3/sh, +4.3%QoQ/2.8%YoY where a sequential uptick in earnings is attributable to balance sheet volumetric growth. It overshadowed higher tax expense owing to an increase in effective tax rate (3QCY21: 41.0% vs. 38.2% in the same period last year) on the back of the Bank falling short of minimum ADR threshold.

· Gross Yield improved marginally in 3QCY21 to 63.0% vs. 62.4% in the previous quarter while other income contribution in total income stood lower at 42.6% as against 44.3% in the previous quarter.

Courtesy – AKD Research

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