Meezan Bank Limited. · PSX:MEBL
Meezan Bank — HY20 Earnings Presentation
31 slides from Meezan Bank's earnings presentation, Aug 19, 2020
Slide 1: Unlocking the True Potential of Islamic Banking
Meezan Bank Limited Unlocking the True Potential of Islamic Banking Trillion Rupees Deposit Corporate Briefing Session June 2020 August 19, 2020
Slide 2: Schedule of the Event
Corporate Briefing – August 19, 2020: 2 Schedule of the Event I. Tilawat e Quran 4:00 pm – 4:05 pm Presentation by CFO and Group Head Finance – 4:05 pm – 4:30 pm II. Mr. Shabbir Hamza Khandwala 4:30 pm – 5:00 pm III. Q & A Session
Slide 3: Trillion Rupees Deposit – A Watershed Milestone
Trillion Rupees Deposit – A Watershed 3 Milestone Rs in Bn 1,045 933 785 667 559 468 379 288 230 169 131 100 55 70 14 23 34 5 8 CY02 CY03 CY04 CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 HY20 Fastest Bank to Achieve Trillion Rupees Deposits Benchmark CAGR based on CY19
Slide 4: Meezan Bank is ranked as the 59th Strongest Bank in Asia Pacific
4 Meezan Bank is ranked as the 59th Strongest Bank in Asia Pacific. Next Pakistani Bank is Ranked at 183rd Position. CRITERIA • Assets/GDP • Return on Asset • YoY Growth in Loans • Cost to Income Ratio • YoY Growth in Deposits • Non-interest Income / Total Operating Income • Loan to Deposit Ratio •
Slide 5: Meezan Bank is ranked as the 10th Strongest Islamic Bank
5 Meezan Bank is ranked as the 10th Strongest Islamic Bank across Asia Pacific, Middle East & Africa.
Slide 6: Major Awards and Accolades
Major Awards and Accolades gS = = | = I Pakistan Banking Award: tex: Sky a SW. CFA Soci INTERNATIONAL EN ociety | il ie Pakistan FINANCE polAan 4 Chartered Accountants Mastercard of Pakistan G BAL [ANCE TheBanker SAA % SAFA aos Pty a E 'eicaS? |FFSA GLOBAL ISLAMIC FINANCE AWARDS ISLAMIC FINANCE FORU
Slide 7: Performance At a Glance – Profit After Tax Grew by 67%
Performance At a Glance – Profit After Tax 7 Grew by 67% PROFITABILITY: • Profit After Tax (PAT) - HY20: Rs 11.68 bn ($ 69.5 mn) vs Rs 7.00 bn ($ 41.7 mn) – a growth of 67% (Rs 4.68 bn). PAT for Q2’20: Rs 6.17 bn vs Rs 5.51 bn in Q1 – a growth of 12%; • Earnings Per Share - Rs 9.08 in HY20 vs Rs 5.4
Slide 8: Performance At a Glance – Profit After Tax Grew by 67%
Performance At a Glance – Profit After Tax Grew 8 by 67% ADMINISTRATIVE EXPENSES: • Operating Expenses - Rs 14.9 bn vs Rs 11.7 bn in HY19 (27% up) due to opening of 120 new branches from HY19; • Income efficiency ratio: 40% vs 46% in HY19 – improved by 6%; • No of New Branches: 38 new branches from
Slide 9: Performance At a Glance - Trillion Rupees Deposit
Performance At a Glance - Trillion Rupees Deposit 1st 9 Time in History of Bank DEPOSITS: • Deposits crossed a trillion rupee benchmark first in the history of the Bank grew to Rs 1,045 bn vs Rs 933 bn in CY19; • Market share of deposits increased to 6.4% in HY20 from 5.8% in HY19; • Current account
Slide 10: Deposit growth of 12% with High Granularity - HY20
Deposit growth of 12% with High 10 Granularity - HY20 Deposit Composition - High Granularity Period End Deposits 2% 1% 27% PKR Bln Mix HY20 Mix CY19 Var % Individual - 70% Current Account - CA 38% 397 36% 339 17% 70% Private Sector - 27% Savings Account - SA 37% 390 38% 349 12% CASA 75% 787 74% 688
Slide 11: CASA Mix & Branch Network
11 CASA Mix & Branch Network Deposit Mix Branch Network – in more than 240 Fixed Savings Current cities 100% 90% 31% 32% 35% 35% 80% 37% 36% 38% 100 38 70% 59 123 60% 20 30 77 50% 40% 40% 40% 40% 36% 38% 37% 40% 760 798 30% 660 551 571 601 20% 428 29% 28% 25% 25% 27% 26% 25% 10% 0% CY14 CY15 CY16 CY
Slide 12: Leading the Islamic Banking Industry with 34% share of deposit
Leading the Islamic Banking Industry with 12 34% share of deposit – Q1’20 Rs in Bn Share of Islamic Banking Industry Meezan Bank's Growth in Comparison with Bank 34% Islamic Banking Industry (16) Islamic 3,000 44% Windows of Conventional 40% Banks 2,500 36% 40% 32% 2,000 28% 1,500 24% 20% 1,000 16%
Slide 13: Financing and Asset Quality
13 Financing and Asset Quality Financing Mix 5 YR - CAGR 23% Net Financing 1% 10% 72% 513 494 478 420 17% 312 Corporate - 72% 208 176 SME / Commercial - 17% Consumer - 10% Staff - 1% CY14 CY15 CY16 CY17 CY18 CY19 HY20 12 Asset Quality 142% 129% 160% Non Performing Loans & Infection Ratio 133% 139% 3
Slide 14: Strong Profitability has resulted in Higher Equity and CAR
Strong Profitability has resulted in Higher 14 Equity and CAR Min Req HY20 CY19 Total CAR 11.50 20.89 16.58 Tier I CAR 9.00 16.01 12.92 Common Equity Tier I 7.50 14.28 11.30 Trade Business Volume - Rs In Bn 1,085 1,013 712 552 461 447 376 CY14 CY15 CY16 CY17 CY18 CY19 HY20
Slide 15: Profit After Tax & Key Ratios At a Glance
15 Profit After Tax & Key Ratios At a Glance Profit After Tax - Rs in bn ROE - Annualized - % 38.3% 15.23 30.7% 11.68 8.96 23.8% 5.56 6.31 21.4% 4.57 5.02 20.0% 19.6% 19.3% CY14 CY15 CY16 CY17 CY18 CY19 HY20 CY14 CY15 CY16 CY17 CY18 CY19 HY20 ROA - Annualized - % Income Efficiency Ratio - Annualized
Slide 16: Top Rated Mobile App in Industry & Digital Transactions Growth
Top Rated Mobile App in Industry & 16 Digital Transactions Growth Meezan Mobile Mobile App / Internet Banking 19m App is Rated as Transactions Count Top App on Google Transactions Value – Rs in bn Play Store 4.7 5.8m 156 418 HY19 HY20
Slide 17: Meezan Bank: Leading the 1Link Industry Ranking
Meezan Bank : Leading the 1 link 17 Industry Ranking • Overall Transactions over 1Link grid (by Count) • Overall Transactions over 1link grid (by Value) • 1Link Income from industry Bill Payment (by Value)
Slide 18: HY20 Results – Deposit crossed a Trillion Rupees Benchmark (Unconsolidated)
HY20 Results – Deposit crossed a Trillion 18 Rupees Benchmark (Unconsolidated) Rs in mn Growth % - Growth % - Balance Sheet HY20 CY19 HY19 vs CY19 vs HY19 Investments 306,510 225,646 36% 217,160 41% Due from FIs 274,357 223,689 23% 131,254 109% Islamic Financing and related assets 478,442 493,775 (3
Slide 19: HY20 Results – 67% Growth in Profitability (Unconsolidated)
19 HY20 Results – 67% Growth in Profitability (Unconsolidated) Rs in mn Profit & Loss Account HY20 HY19 Growth % Net spread earned 32,355 20,751 56% Fee and commission and other income 2,574 3,418 (25%) Foreign exchange income 1,298 1,074 21% Dividend income and capital gain / (loss) 1,153 (33) (3,5
Slide 20: Profit and Loss – Q2'2020 Higher by 12% (Unconsolidated)
20 Profit and Loss – Q2’ 2020 Higher by 12% (Unconsolidated) Rs in mn Profit & Loss Account Q2'20 Q1'20 Growth % Policy Rate 11.00% - 7.00% 13.25% - 11.00% Return on financings, investments and placements 27,996 29,833 (6%) Return on deposits and other dues expensed 10,359 15,115 (31%) Net spread ea
Slide 21: Consolidated Balance Sheet - Total Assets Grew by 12%
Consolidated Balance Sheet - Total 21 Assets Grew by 12% Rs in mn Balance Sheet HY20 CY19 Growth % Investments 310,408 229,667 35 Due from FIs 274,357 223,689 23 Islamic Financing and related assets 478,442 493,775 (3) Cash and Bank Balance 121,608 107,609 13 Fixed Assets and Other Assets 80,182 71,
Slide 22: Consolidated Profit After Tax Grew by 66% of Rs 11.54 Billion
Consolidated Profit After Tax Grew by 22 66% of Rs 11.54 Billion Rs in mn Profit & Loss account HY20 HY19 Growth % PSX - 100 Index 34,422 33,902 2 Net spread earned 32,346 20,756 56 Fee, commission and brokerage income 2,963 3,857 (23) Income from dealing in foreign currencies 1,298 1,074 21 Capital
Slide 23: Performance Over Last 6 years
Corporate Briefing Performance Over Session June 2020 Last 6 years
Slide 24: Unconsolidated Balance Sheet: CY14 – HY20
Unconsolidated Balance Sheet: 24 CY14 – HY20 Rs in mn Balance Sheet CY14 CY15 CY16 CY17 CY18 CY19 HY20 Cash and Bank Balance 35,230 54,861 68,058 69,452 73,277 107,566 121,683 Due from FIs 90,766 101,079 129,115 147,229 184,815 223,689 274,357 Investments 114,089 146,305 130,156 119,238 123,743 225,
Slide 25: Unconsolidated Profit And Loss Account: CY14 – HY20
Unconsolidated Profit And Loss Account: 25 CY14 – HY20 Rs in mn P&L Statement CY14 CY15 CY16 CY17 CY18 CY19 HY20 Policy rate 10.00% - 9.50% 9.50% - 6.00% 6.00% - 5.75% 5.75% 5.75% - 10.00% 10.00% - 13.25% 13.25%-7.00% Target rate- Average 9.94% 7.13% 5.85% 5.75% 7.10% 11.99% 10.92% Profit / return e
Slide 26: Key Ratios: CY14 – HY20
26 Key Ratios: CY14 – HY20 Key Ratios - % CY14 CY15 CY16 CY17 CY18 CY19 HY20 Policy rate 10.00% - 9.50% 9.50% - 6.00% 6.00% - 5.75% 5.75% 5.75% - 10.00% 10.00% - 13.25% 13.25%-7.00% Income Efficiency Ratio 58.5 59.7 62.9 59.3 55.2 45.7 39.8 Branches opened 77 123 20 30 59 100 38 Total no of branches
Slide 27: Bank's Subsidiary Al Meezan Investments
Corporate Briefing Bank’s Subsidiary Session June 2020 Al Meezan Investments
Slide 28: About Bank's Subsidiary - Al Meezan Investments
About Bank’s Subsidiary - Al Meezan 28 Investments Since its inception in 1995, it has the distinction of being the only AMC in Pakistan with the exclusive mandate 1 of providing Shariah compliant investment solutions to its investors Shariah Board consists of members who are playing the leading rol
Slide 29: Meezan Bank: Performance of its Subsidiary
Meezan Bank: Performance of its 29 Subsidiary June June Unit 30, 30, ∆ % 2020 2019 Assets Under Management –incl. discretionary portfolio Rs Bn 163 103 58% Number of Funds No. 17 17 0% Number of Funds -including plans No. 29 29 0% Number of Branches No. 27 25 8%
Slide 30: Breakdown of AUMs by Investor Category
Meezan Bank: Performance of its 30 Subsidiary Break-down of AUMs by Investor Category As at June 2020 As at June 2019 Banks / Insurance / Banks / NBFI Individual Insurance / 5% 63% NBFI 6% Public / Private Individual Limited Companies Public / Private 53% 31% Limited Companies 15% Retirement Retirem
Slide 31: Thank You
Thank You