Meezan Bank Limited. · PSX:MEBL
Meezan Bank — Investor Presentation (September 2022)
38 slides from Meezan Bank's investor presentation, September 2022
Slide 1: Investor Presentation
- Investor Presentation
Slide 2: Index
Index S.No Table of Content Slide # 1 Islamic Finance Industry 3-6 2 Company Overview 7-23 3 Our Digital Footprint 24-31 4 ESG Initiatives 32-34 5 Investment Opportunity & Strategic Priorities 35-37 2
Slide 3: Islamic Finance Industry
Islamic Finance Industry 3
Slide 4: Global Islamic Finance Industry
Global Islamic Finance Industry Highlights Islamic Financial Institutions Notable Islamic Banks globally Total Asset size US $3.4 Trillion • Al Rajhi Bank (KSA) • Dubai Islamic Bank (UAE) 1,595 Islamic financial institutions including 520+ Islamic • Kuwait Finance House (Kuwait) • Alinma Bank (KSA)
Slide 5: Pakistan Islamic Banking Industry
Pakistan Islamic Banking Industry Islamic banking assets recorded highest ever growth of Rs1.3 trillion in CY21: SBP According to Fitch Ratings (US-based credit rating agency), Islamic finance industry in Pakistan is expected to continue its growth trajectory over the medium term, driven by strong g
Slide 6: Islamic Banking vs Total Banking Industry of Pakistan
Islamic Banking vs Total Banking Industry of Pakistan 20.5% 19.5% Deposits Meezan Share Assets Meezan Share Meezan Bank: Rs. 1.6 Trn Meezan Bank: Rs. 2.4 Trn Total: 6.6% Total: 6.9% Islamic Banks: Rs. 4.9 Trn Islamic Banks: Rs. 6.8 Trn IB: 32.3% IB: 35.7% Conventional Banks: Rs. 18.9 Trn Conventiona
Slide 7: Company Overview
Company Overview 7
Slide 8: Awards and Recognitions
Awards and Recognitions NJ, CFASociety Gopal me Pakistan EINANCE (il) BosHan ASIAMONEY EW yi: ACCOUNT ~ Ws Jus — l INTERNATIONAL —_————— an IUFINANCE a, GIFAS, FES WORLD FINANCE TheBanker
Slide 9: Meezan Bank Current Standing
Meezan Bank Current Standing Founded with the Vision to ‘establish Islamic banking as banking of first choice…’, the Bank commenced operations in 1997 as Al Meezan Investment Bank Limited. It converted to Meezan Bank Limited, a full-fledged Islamic commercial bank in 2002, when the State Bank of Pak
Slide 10: Performance Overview YoY June 2022
Performance Overview YoY June 2022 10
Slide 11: Key Performance Indicators - Deposits
Key Performance Indicators - Deposits Rs in Bn US $ 7.7 Bn Deposit Growth Since Inception 1,569 1,456 Market Share of Deposits 6.9% CAGR Since Inception 35% 1,254 933 785 667 559 468 379 US $ 24 Mn 288 169 230 70 100 131 5 8 14 23 34 55 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10
Slide 12: Meezan Bank vs Domestic Industry Deposits
Meezan Bank vs Domestic Industry Deposits ▪ CASA ratio of Meezan Bank has remained steady in 2nd Qtr. 2022 vs Year End Dec 2021. ▪ Steady growth of 12% in Current deposit vs Year End Dec 2021. ▪ Increase of more than Rs 800 Bn in CASA over the last 5 years. ▪ CA: Rs. 747 Bn | SA: Rs. 560 Bn | TD 262
Slide 13: Key Performance Indicators - Financing
Key Performance Indicators - Financing 900 Gross Financing & Infection Ratio 6.0% Strong NPL Coverage Ratio Rs in Bn 800 Rs in Bn 827 5.0% 24 139% 142% 139% 150% Jun 2022: Financing Market Share: 7.4% 700 777 22 133% 133% 140% 600 4.0% 20 128% 130% 500 18 118% 19 15 19 20 522 507 2.8% 532 14 14 120%
Slide 14: Key Performance Indicators – Investment
Key Performance Indicators – Investment Rs 1.2 Trillion Up by 100% INVESTMENTS MIX Investments (Rs in Bn) HY22 CY21 Var. GoP Ijarah Sukuk (GIS) 1,062 398 167% Rs 1.06 tn 86% GIS Rs 398 bn 64% Energy Sukuk & Other Govt. (PES) 155 197 (21%) Others (Shares , Corp sukuk etc) 25 26 (4%) Total 1,242 621 1
Slide 15: Key Performance Indicators - Profit
Key Performance Indicators - Profit Rs in Bn Full Year Profit After Tax 2011 - 2022 34.2 Last three years average growth in PAT 48% (2019 – 2021) 28.4 PAT Jun 2022 HY Rs 17.1 Bn YoY 36% up 22.2 US $167 US $139 15.2 mn US $108 mn 9.0 mn 4.6 5.0 5.6 6.3 3.4 3.5 4.0 2011 2012 2013 2014 2015 2016 2017 2
Slide 16: Key Ratios (1/2)
Key Ratios (1/2) ROE - % ROA - % 38.3% 1.7% 36.4% 1.7% 1.6% 34.6% 1.5% 30.7% 23.8% 1.0% 0.9% 0.9% 19.6% 19.3% CY16 CY17 CY18 CY19 CY20 CY21 HY22 CY16 CY17 CY18 CY19 CY20 CY21 HY22 Income Efficiency Ratio - % Gross ADR - % 66.5% 70.0% 64.3% 62.9% 65.0% 59.3% 57.1% 60.0% 54.3% 53.4% 53.0% 55.2% 55.0%
Slide 17: Key Ratios (2/2)
Key Ratios (2/2) Capital Adequacy Ratio % 19. 0% 17.8% 17.8% 17.8% CAR 18. 0% 16.6% 16. 0% 14.5% 17. 0% 12.9% 12.9% 14. 0% 15. 0% 6.3% 6.3% 5.3% Excess 4.1% 12. 0% 2.0% 0.4% 0.4% 13. 0% Additional 10. 0% 1.0% 11. 0% D-SIB 8. 0% 6. 0% Minimum 9. 0% 4. 0% 7. 0% Required 12.5% 12.5% 12.5% 12.5% 11.5% 1
Slide 18: Unconsolidated Statement Of Financial Position CY 2018 - HY 2022
Unconsolidated Statement Of Financial Position CY 2018 - HY 2022 Rs in Bn Balance Sheet CY18 CY19 CY20 CY21 2021/2020 HY22 2022/2021 Islamic Financing - Gross 522 507 532 777 46% 827 6% Less: Provisions (10) (13) (19) (19) 1% (20) 4% Islamic Financing - net 513 494 513 758 48% 808 7% Investments 124
Slide 19: Unconsolidated Profit & Loss Statement CY 2018 - HY 2022
Unconsolidated Profit & Loss Statement CY 2018 - HY 2022 Rs in Bn P&L Statement CY18 CY19 CY20 CY21 2021/2020 HY22 Ann. 2022/2021 Policy rate 5.75% - 10.00% 10.00% - 13.25% 13.25% -7.00% 7.00% - 9.75% 9.75% - 13.75% Policy rate - Average 7.10% 11.99% 8.95% 7.29% 11.23% Profit / return earned 49 94 1
Slide 20: Fee, Commission and Other Income - 53% Growth
Fee, Commission and Other Income - 53% Growth Rs in 000 Fee, commission and other income HY22 HY21 Growth % Trade related fees & guarantee commissions 1,962 1,671 17 Debit card related fees 2,506 1,156 117 Branch banking fees 1,079 764 41 Investment banking fees 155 152 2 Home remittance fees 145 12
Slide 21: Al-Meezan Investment Management Ltd (Meezan Bank's subsidiary)
Al-Meezan Investment Management Ltd (Meezan Bank’s subsidiary) Al Meezan Investment Management (AMIM) has a vision… to make Shariah Compliant Investing a first choice for investors. Having a diverse clientele base of over 167,000 investors, ranging from institutions and businesses to individuals and
Slide 22: Al-Meezan - Products
Al-Meezan - Products 1. Mutual Funds 2. Savings Plan 3. Retirement Plans 4. Investment Plans 5. Monthly Income Plans 6. Capital Preservation Solutions 7. Separately Managed Accounts 8. Meezan Pakistan Exchange Traded Fund 22
Slide 23: Al-Meezan – Financial Performance
Al-Meezan – Financial Performance ✓ Largest Asset Management Company in Pakistan ✓ Established track record of over 27 years ✓ One of the largest investor base of over 167,000* investors ✓ Manages the largest open-end Shariah Compliant Income, Money Jun Dec ∆% Market & Voluntary Pension Fund 2022 20
Slide 24: Our Digital Footprint
Our Digital Footprint 24
Slide 25: Building Blocks for Digital Transformation & Innovation
Building Blocks for Digital Transformation & Innovation Objective To intelligently understand the banking needs of our customers and develop new business models providing new revenues and value producing opportunities for the bank through the use of new technologies and data Strategy Culture Intelli
Slide 26: Key Highlights and Achievements
Key Highlights and Achievements Meezan Bank is leveraging the latest technologies to strategically expand its reach, bring in newer product innovations, digitize its customers journeys and offer newer and simpler payment solutions. The Bank enjoys digital leadership in the following areas: ▪ Highest
Slide 27: Digital Channels Statistics (1/2)
Digital Channels Statistics (1/2) No in 000’s POS & E-Commerce Transactions 2.6 Million Total Cards 2,600 23,474 2,326 No of transactions in 000’s 1,991 15,648 1,505 1,305 11,248 1,175 8,222 5,337 3,034 CY17 CY18 CY19 CY20 CY21 HY 22 CY22 CY17 CY18 CY19 CY20 CY21 HY 22 CY22 Jan to June 2022 Digitali
Slide 28: Digital Channels Statistics (2/2)
Digital Channels Statistics (2/2) MB = Mobile Banking IB= Internet Banking MB / IB - Volumes and Trans. doubled YoY. Card base at 2.6 Mn, with spend growing by 113% YoY Monthly Active Mobile App Users ~70 70 mn (trxn) % Jan to June 2022 Jan to June 2022 15.64 mn (trxn) June 2022 Unique Login up by 6
Slide 29: Meezan Roshan Digital Account (RDA)
Meezan Roshan Digital Account (RDA) Simplified Digital Account Opening for Overseas Pakistanis Convenient & Riba-free Meezan Roshan Digital Account is an initiative led by the State Bank of Pakistan (SBP) for the ease of millions of Non-Resident Pakistanis (NRPs) residing across the world. It enable
Slide 30: Meezan Roshan Digital Journey
Meezan Roshan Digital Journey Remittances received through RDA ~ USD 1.1 Bn (~23% of the industry) 1st Bank to Issue Islamic Naya Pakistan Certificate 1st Bank to Disburse Roshan Apna Ghar Financing 1st Bank to Disburse Roshan Apni Car Financing Provide Shariah Compliant Stock Trading Portfolio Prov
Slide 31: Roshan Digital Meezan vs Industry 2021 - 2022
Roshan Digital Meezan vs Industry 2021 - 2022 (Cumulative amount in USD million) - On average Meezan get 23% of the funds received in RDA and accounts for 45% of investments in INPC (Cumulative # of accounts) - 17% of RDA accounts opened in industry comes from Meezan Bank 31
Slide 32: ESG Initiatives
ESG Initiatives 32
Slide 33: Environmental, Social and Governance Initiatives
Environmental, Social and Governance Initiatives The Bank is supporting the United Nations Sustainable Development Goals (SDG) to support its ESG initiatives Environmental Social - Access to affordable, reliable, sustainable and modern - COVID-19 Vaccination Drives - Bank in collaboration with energ
Slide 34: Distribution of Value Created by the Bank
Distribution of Value Created by the Bank In fulfilling our promise to our stakeholders, Meezan Bank distributes the value created in relevant and meaningful ways – and for some stakeholders, beyond financial means. Stakeholders receive intangible benefits ranging from employee upskilling programmes
Slide 35: Meezan as an Investment Opportunity
Meezan as an Investment Opportunity 35
Slide 36: Meezan as an Investment Opportunity
Meezan as an Investment Opportunity - The Best Performing Banking Stock over five years (Dec 2021) - Highest ROE in the Banking Industry for the last 5 years averaging more than 30% (Jun 2022) - Highest Market Capitilisation among banks in Pakistan (Dec 2021) - Highest Price to Book ratio among othe
Slide 37: Strategic Priorities
Strategic Priorities Continuing the Digitally Promoting Being the growth momentum Transforming the Financial Inclusion Thought Leader Using Big Data by focusing on Bank with in unbanked and in Islamic Banking Analytics and CASA mobilization continued underserved areas product Artificial (HY 22: 83%)
Slide 38: Thank You
Thank You 38