Meezan Bank achieves Rs nine billion MCR in advance

Meezan Bank Limited has achieved Minimum Capital Requirement (MCR) of rupees nine billion in advance, set by the State Bank of Pakistan. SBP has asked all banks to maintain a MCR of rupees nine billion by end of December 2012; however, with the massive growth in profit and issuance of bonus shares, Meezan Bank has fulfilled this condition in advance.
Addressing a press conference here on Monday, Board Chairman H. E. Sheikh Ebrahim Bin Khalifa Al Khalifa said, "Meezan Bank is completing 10 years of successful Islamic commercial banking operations this year. "During the last one decade the Bank has achieved growth in all business segments and maintained its position as the leading Islamic Bank in Pakistan. The Bank's total assets crossed the landmark figure of Rs 200 billion at December 2011, while deposits increased by 30 percent over the last year to Rs 170 billion", he added.
The Board of Directors of Meezan Bank Limited in its meeting held at Karachi on February 19, approved the financial statements of the Bank for the year ended December 31, 2011, he informed. The Bank has recorded 106 percent growth in its profit-after-tax which increased to Rs 3.4 billion for the year ended December 31, 2011 as compared to Rs 1.65 billion in 2010. Earning per share (EPS) increased to Rs 4.22 from Rs 2.05 recorded last year, he added.
The Board has also recommended the issue of 12.5 percent Bonus Shares for year 2011. This declaration, together with the earlier cash dividend of 10 percent paid in July 2011, brings the total payout for the year to 22.5 percent and maintains the Bank's unbroken payout record since its date of listing on the Stock Exchange. The Bonus issue will increase the Bank's paid up capital to rupees nine billion and the Bank will meet SBP's minimum capital requirement for 2012 of Rs 9 billion a year in advance, Board's Chairman said.
Speaking at the occasion, Meezan Bank President Irfan Siddiqui said the Bank's excellent deposit growth was a result of the rapidly growing demand for Islamic financial products, which was a clear indication of increasing public confidence in Islamic banking, the fastest growing banking sector across the globe.
Meezan Bank opened 53 branches in 2011 bringing its online branch network to 275 branches spread across 83 cities, making it the ninth largest banking network in Pakistan, he said, adding the objective behind the Bank's branch expansion strategy was to make Islamic banking accessible to all segments of the society. He further mentioned that the Bank would continue its branch expansion strategy in 2012.
The JCR-VIS Credit Rating Company Limited upgraded Bank's short-term rating from A-1 (A-One) to A-1+ (A-One Plus), the highest standard in short-term rating. The long-term entity rating has been maintained at AA- (Double A Minus) with stable outlook. The rating indicates sound performance indicators of the Bank, Siddiqui informed.
He said Meezan Bank was the first and largest Islamic bank in Pakistan and had been consistently recognised as the best Islamic bank in Pakistan by various local and international institutions over the past several years. During the year, the Bank won various accolades including 'Best Islamic Financial Institution in Pakistan' by Global Finance magazine and 'Best Islamic Bank in Pakistan' by Islamic Finance News of RED money Group, Malaysia. Ariful Islam Chief Operating Officer, Muhammad Raza, and other officials of Bank were also present at the occasion.