Meezan Bank Limited. · PSX:MEBL
Meezan Bank — H1 2023 Earnings Presentation
41 slides from Meezan Bank's earnings presentation, Sep 6, 2023
Slide 1: Corporate Briefing Session
June 2023 Corporate Briefing Session September 06, 2023 1
Slide 2: Schedule of the Event
ANALYST BRIEFING – SEPTEMBER 06, 2023 SCHEDULE OF THE EVENT I. Tilawat e Quran II. Opening Remarks by Mr. Ariful Islam – Deputy CEO 05 Mins III. Presentation by Syed Imran Ali Shah – CFO 20 Mins IV. Q & A Session - Mr. Ariful Islam – Deputy CEO 25 Mins 2
Slide 3: Opening Remarks by Mr. Ariful Islam
Opening Remarks by: Mr. Ariful Islam Deputy CEO 3
Slide 4: You take care of the sowing, Allah will take care of the growing
YOU TAKE CARE OF THE SOWING, ALLAH WILL TAKE CARE OF THE GROWING 4
Slide 5: Years of Meezan Bank
25 Years of Meezan Bank 1997: ✓ Setup as an Investment Bank 2002: ✓ Got License as the First Islamic Commercial Bank 2002 June 2023 ✓ Ranked: 32 nd out of 32 banks 4th Largest Bank in the Country ✓ No of Branches: 5 982 ✓ No of Staff: 60 16,000+ Alhamdulillah 5
Slide 6: Company Overview
Company Overview 6
Slide 7: 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 8: Awards and Recognitions
Meezan Bank Awards and Recognitions <= , II] NI CFA Society TH PAKISTAN BANKING AWARDS WS Pa kista n THE INSTITUTE OF BANKERS PAKISTAN em WAR a — poll, | PAKISTAN = z psx STOCK EXCHANGE ~*~, misses > LIMITED %y, A E assé Fe ae 5 GIFAS? Cifkikce ASIAMONEY Uv 2) (map) The Institute of Ra Management As
Slide 9: Company Financials
Company Financials Presentation by: Syed Imran Ali Shah CFO 9
Slide 10: Performance Overview – June 2023 Headlines
Performance Overview – June 2023 Headlines 90% 16% vs Jun-2022 Basic Earnings Per Share YoY Rs.32.6 billion Rs.2.8 trillion Rs.18.21 per share 23% vs Jun-2022 ADR Return on Equity Rs. 1.92 trillion 55% 52% Plus 20 vs Dec 10 vs Dec New Branches New Cities Distribution to Shareholders 982 327 70% Cash
Slide 11: Performance Overview – June 2023 Headlines Growth
Performance Overview – June 2023 Headlines Growth June 2023 June 2022 % Profit After Tax Rs 32.6 billion Rs 17.1 billion Rs 15.5 billion 90% Gross Financings Rs 1.05 Trillion Rs 827 billion Rs 219 billion 26% CASA Deposits Rs 1.70 Trillion Rs 1.31 Trillion Rs 390 billion 30% Deposits Rs 1.92 Trillio
Slide 12: 90% Growth in PAT – Unconsolidated
90% Growth in PAT- Driven by Volumetric Growth and Higher Benchmark Rates (Unconsolidated) Rs in mn Profit & Loss Account June 2023 June 2022 Growth % Average Policy Rate 19.36% 11.23% 72% Return on financings, investments and placements 182,985 88,296 107% Return on deposits and other dues expensed
Slide 13: 11% Growth in PAT – Q2 2023 vs Q1 2023
11% Growth in PAT- Q2’ 2023 vs Q1’ 2023 (Unconsolidated) Rs in mn Profit & Loss Account Q2' 23 Q1' 23 Growth % Average Policy Rate 21.00% 17.71% 19% Return on financings, investments and placements 101,032 81,953 23% Return on deposits and other dues expensed (51,500) (40,907) 26% Net spread earned
Slide 14: Key Performance Indicators – Profitability
Key Performance Indicators – Profitability (Unconsolidated) Rs in bn Full Year Profit After Tax 2011 - 2023 Last three years average growth in PAT 44% (2019 – 2022) 45.0 US $157 mn 28.4 32.6 US $114 mn Rs 32.6 bn 22.2 US $99 mn 15.2 5.6 6.3 9.0 3.4 3.5 4.0 4.6 5.0 2011 2012 2013 2014 2015 2016 2017
Slide 15: Key Ratios
Key Ratios ROE - % ROA - % 52.2% 2.4% 44.6% 2.0% 36.4% 1.7% 1.7% 34.6% 30.7% 1.5% 23.8% 1.0% 0.9% 0.9% 19.6% 19.3% 2016 2017 2018 2019 2020 2021 2022 Jun-23 2016 2017 2018 2019 2020 2021 2022 Jun-23 Income Efficiency Ratio - % Gross ADR - % 66.5% 64.3% 62.9% 61.4% 59.3% 57.1% 54.3% 53.4% 54.5% 55.2%
Slide 16: 16% Growth in Assets Since June 2022
16% Growth in Assets Since June 2022 - Led by Higher Financings & Investments (Unconsolidated) Rs in mn Balance Sheet Jun 2023 Jun 2022 Growth Dec 2022 Growth Islamic Financing and related assets - Gross 1,046,609 827,477 219,132 26% 1,018,102 28,507 3% Less: Provisions (26,324) (19,939) (6,385) (32
Slide 17: Key Performance Indicators - Deposits
Key Performance Indicators - Deposits Rs in mn Deposit Growth Since Inception 1,922 Market Share of Deposits 7.2% (June ’23) CAGR Since Inception 34% (Dec’22) 1,658 1,456 1,254 933 785 667 559 468 379 230 288 100 131 169 5 8 14 23 34 55 70 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 18: Key Performance Indicators - Deposits Rs 1.92 tn
Key Performance Indicators - Deposits Jun 2023 Jun 2022 Growth Rs in bn Mix Rs in bn Mix Rs in bn % CASA Deposits Grew by 30% CA 951 49% 747 47% 204 27% SA 746 39% 560 36% 186 33% CASA 1,697 88% 1,307 83% 390 30% TD 225 12% 262 17% (37) (14%) Jun 2023 Total 1,922 100% 1,569 100% 353 23% TD, 12% Jun
Slide 19: Key Performance Indicators - Financing
Key Performance Indicators - Financing Rs in Bn Gross Financing & NPL Ratio Strong NPL Coverage Ratio 30 200 % 172% 00 3.0 % June 2023: Financing Market Share 8.6% 2.8% 1,047 166% 180 % 25 00 2.5 % 139% 142% 26 160 % 1,018 133% 128% 133% 00 2.1% 2.0 % 20 118% 23 140 % 1.8% 1.9% 120 % 19 19 00 1.5% 1
Slide 20: Key Performance Indicators – Investment
Key Performance Indicators – Investment Rs 1.4 Trillion Up by 10% from June 2022 Investment Mix Investments (Rs in Bn) Jun 2023 Jun 2022 Var. Rs 1,200 bn 88% GIS Rs 1,062 bn 86% GoP Ijarah Sukuk (GIS) 1,200 1,062 13% Rs 141 bn 11% PES Energy Sukuk & Other Govt. (PES) 141 155 (9%) Rs 155bn 12% Others
Slide 21: Key Ratios: Capital Adequacy Ratio
Key Ratios Capital Adequacy Ratio % Min. Req. D-SIB Excess CAR 21.0% CAR 18.4% 21. 0% 22. 0% 20. 8% 20. 5% 20. 3% 21. 0% 20. 0% 17.8% 19. 8% 17.8% 19. 5% 20. 0% 16.6% 19. 3% 19. 0% 18. 8% 19. 0% 18. 5% 18. 3% 18. 0% 18. 0% Excess 17. 8% 17. 5% 17. 3% 17. 0% 9.0% 17. 0% 14.5% 16. 8% 16. 5% 12.9% 12.9
Slide 22: Branch Network Coverage Across Pakistan
Branch Network Coverage Across Pakistan 982 branches in 327 cities 05 As at June 30, 2023 Gilgit Baltistan 73 02 Sindh: 286 Branches KPK Punjab: 569 Branches 84 Baluchistan : 39 Branches 10 KPK: 73 Branches AJK Gilgit Baltistan: 05 Branches 08 AJK : 10 Branches 569 Total : 982 Branches Punjab 639 39
Slide 23: 21% Growth in Fee and Commission
21% Growth in Fee and Commission Rs in mn Fee, commission and other income June 2023 June 2022 Growth % Debit card related fees 3,610 2,506 44% Trade related fees & guarantee commissions 1,924 1,963 (2%) Branch banking fees 1,242 1,079 15% Investment banking fees 241 154 56% Home remittance fees 125
Slide 24: Trade Business Volume Contracted by 9%
Trade Business Volume Contracted by 9% Due to Ongoing Economic Conditions Rs in Bn Jun 2022 Jun 2023 702 469 Rs. 1.07 506 Rs. 975 trillion billion 371 Import Export Import Export 25
Slide 25: Our Digital Footprint
Our Digital Footprint 26
Slide 26: Key Highlights and Achievements
Key Highlights and Achievements Meezan Bank is leveraging the latest technologies to expand its reach, introduce innovative products, digitalize its customer journeys and offer simpler payment solutions. The Bank enjoys digital leadership in the following areas: ▪ Highest-Rated Mobile App on Google
Slide 27: Digital Channels Statistics (1/3)
Digital Channels Statistics (1/3) No’s No in mn’s 2.97 Millions Total Debit Cards Mobile App Active Users POS Merchant Deployment 15,013 No in 000’s 2,965 2,813 1.65 12,300 1.56 1.51 2,326 1.38 1,991 8,992 1.25 1,505 1,305 1,175 5,104 3,802 CY17 CY18 CY19 CY20 CY21 CY22 HY23 Q2 - 2022 Q3 - 2022 Q4 -
Slide 28: Digital Channels Statistics (2/3)
Digital Channels Statistics (2/3) No. in Mn POS Acquiring – Spend & Transactions Digital Bill Payments Transactions EPG - Spend & Transactions 9.84 5.50 5.23 30.00 250.00 196 2,000.0 9.56 5.00 4.50 25.00 1,800.0 9.38 200.00 1,600.0 4.00 3.55 20.00 131 1,400.0 3.50 150.00 1,200.0 8.85 3.00 15.00 2.16
Slide 29: Digital Channels Statistics (3/3)
Digital Channels Statistics (3/3) Values in Tn Values in Bn No. in Mn IB / MB Value Growth Card Base Spending Value 3.11 56 Digital Transfer Transactions P2P 2.89 50 64.71 44 2.24 39 51.18 34 43.73 1.71 1.51 34.78 30.25 Q2 - 2022 Q3 - 2022 Q4 - 2022 Q1 - 2023 Q2 - 2023 Q2 - 2022 Q3 - 2022 Q4 - 2022
Slide 30: Al-Meezan Investment Management Ltd
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 200,000 investors, ranging from institutions and businesses to individuals and
Slide 31: 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 32
Slide 32: Al-Meezan – Financial Performance
Al-Meezan – Financial Performance Jun Jun ∆% 2023 2022 ✓ Largest Asset Management Company in Pakistan ✓ Established track record of over 28 years 304 209 45% AUMs– Rs Bn ✓ One of the largest investor base of over 204,000* investors Funds –Incl. plans (No.) 41 31 16% ✓ Manages the largest open-end Sh
Slide 33: Meezan as an Investment Opportunity
BEST BANK OF PAKISTAN Meezan as an Investment Opportunity Meezan Bank The Premier Islamic Bank FO
Slide 34: Meezan as an Investment Opportunity
Meezan as an Investment Opportunity - The Best Performing Banking Stock - Highest ROE in the Banking Industry for the last 5 years averaging more than 30% - Highest Market Capitalization among banks in Pakistan - Highest Price to Book ratio among other Pakistani Banks - The Youngest AAA rated Bank i
Slide 35: Thank You
Thank You 36
Slide 36: Q & A Session
Q & A Session Mr. Ariful Islam Deputy CEO 37
Slide 37: Appendix
Appendix 38
Slide 38: Last Six Years Performance
Last Six Years Performance 39
Slide 39: Unconsolidated Statement of Financial Position: 2016 - June 2023
Unconsolidated Statement of Financial Position: 2016 - June 2023 Rs in Bn Balance Sheet 2016 2017 2018 2019 2020 2021 2022 HY 2023 Cash and Balances with Banks 68,058 69,452 73,277 107,566 155,689 186,921 131,419 210,948 Due from FIs 129,115 147,229 184,815 223,689 342,069 238,402 34,964 34,964 Inve
Slide 40: Unconsolidated Profit & Loss Statement: 2016 – June 2023
Unconsolidated Profit & Loss Statement: 2016 – June 2023 Rs in Bn P&L Statement 2016 2017 2018 2019 2020 2021 2022 HY 2023 Policy rate 6.00% - 5.75% 5.75% 5.75% - 10.00% 10.00% - 13.25% 13.25% - 7.00% 7.00% - 9.75% 9.75% - 16.00% 16% - 22% Policy rate - Average 5.85% 5.75% 7.10% 11.99% 8.95% 7.29% 1
Slide 41: Key Ratios: 2016 – June 2023
Key Ratios: 2016 – June 2023 Key Ratios - % 2016 2017 2018 2019 2020 2021 2022 HY 2023 Policy rate 6.00% - 5.75% 5.75% 5.75% - 10.00% 10.00% - 13.25% 13.25% - 7.00% 7.00% - 9.75% 9.75% - 16.00% 16% - 22% Income Efficiency Ratio 62.9 59.3 55.2 45.7 39.7 42.1 34.3 31.5 Branches opened 20 30 59 100 55