Meezan Bank emerges as a Top Bank leaving many other bankers behind. The profit and loss statement of the bank was announced on Thursday 16th of Feb,2023. The banks net profit shows a robust growth of 60% leaving many top banks behind including MCB, Bank Al Habib, Allied Bank & Other top Pakistani Banks. It is noted that Profit and loss of HBL & NBP are not announced yet for the year ending Dec, 2022. If profits of these banks are lesser than Meezan Bank, the bank becomes the most profitable bank of the Pakistan.
The huge profits 45 Billion Rupees of Meezan Bank is completely from Islamic banking operations. This indicates shift of public interest towards Islamic banking other than conventional banking system of Pakistan. One of the key factors for this shift is the religious believe of people as interest is consider as haram in Islam.
Financial Insights of Meezan Bank for the year ended December, 2022
Meezan Bank who started it’s operations in Pakistan in late 2002, now emerged as leading bank. The banks profit after tax show a significant growth of 60% from Rupees 28 Billion in 2021 to 45 Billion rupees in 2022. Despite a shocking economy, impacts of political changes and shortage of dollars Pakistani banking industry growth didn’t effected at all.
The Bank’s main source of revenue is from lending to general public which shows a growth of 111%. Similarly, cost of deposits also rises by 168% making the total net of growth of 77% on banks income.
The banks non interest income/ non markup income also grows by 28% on which Other income and Fee commission income plays a vital role. Banks Fee & Commission income increases by 42% as it was 9 billion in 2021 and 13 billion in current year. Banks other income also shows a growth of 47%.
During the financial year, due to hyperinflation and other uncertain conditions faced by Pakistani economy the operating expenses increased by 35%, WWF by 103% & Other charges by 238% which was a massive increase.
It’s also important to note that Banks provisions also increase by a massive 321%, which shows risks faced by banks. Despite such massive increases and uncertain economy Meezan Banks outperforms all the other bankers of Pakistan.
The financial results for HBL & NBP are still pending, which is expected to be near or less than Meezan Banks performance.