Meezan Bank profit up 65pc

KARACHI: Meezan Bank Limited profit increased 65 percent to Rs11.583 million for the half year ended June 30, 2020 translating into earnings per share (EPS) of Rs8.97, a bourse filing said on Tuesday.

The bank earned Rs7.004 million with EPS of Rs5.42 in the corresponding half last year. The bank did not announce any cash dividend for the quarter ended June 30, 2020. However, the board of directors recommended issuing bonus shares in the proportion of 1 share for every 10 shares, which was equivalent to 10 percent.

Brokerage Topline Securities in a research note said, “The result came in higher than our and industry expectations due to higher net spread earned.” Furthermore, profit earned on assets depicted a decline of six percent QoQ. Along with lower interest rates, one percent QoQ decline in industry loans and slowdown in economic activity has been the cause of decline as the bank traditionally has run on a high ADR model, the brokerage house added.