Meezan Bank Limited. · PSX:MEBL
Meezan Bank — Investor Presentation (October 2022)
37 slides from Meezan Bank's investor presentation, October 2022
Slide 1: Investor Presentation
Investor Presentation
Slide 2: Index
Index S.No Table of Content Slide # 1 Islamic Finance Industry 3-6 2 Company Overview 7-22 3 Our Digital Footprint 23-30 4 ESG Initiatives 31-33 5 Investment Opportunity & Strategic Priorities 34-36 2
Slide 3: Islamic Finance Industry
Islamic Finance Industry 3
Slide 4: Global Islamic Finance Industry
Global Islamic Finance Industry Highlights Islamic Financial Institutions Notable Islamic Banks globally Total Asset size US $3.4 Trillion • Al Rajhi Bank (KSA) • Dubai Islamic Bank (UAE) 1,595 Islamic financial institutions including 520+ Islamic • Kuwait Finance House (Kuwait) • Alinma Bank (KSA)
Slide 5: Pakistan Islamic Banking Industry
Pakistan Islamic Banking Industry Islamic banking assets recorded highest ever quarterly growth of Rs 836 billion in Q2’22: SBP According to Fitch Ratings (US-based credit rating agency), Islamic finance industry in Pakistan is expected to continue its growth trajectory over the medium term, driven
Slide 6: Islamic Banking vs Total Banking Industry of Pakistan
Islamic Banking vs Total Banking Industry of Pakistan 20.5% 19.5% Deposits Meezan Share Assets Meezan Share Meezan Bank: Rs. 1.6 Trn Meezan Bank: Rs. 2.4 Trn Total: 6.6% Total: 6.9% Islamic Banks: Rs. 4.9 Trn Islamic Banks: Rs. 6.8 Trn IB: 32.3% IB: 35.7% Conventional Banks: Rs. 18.9 Trn Conventiona
Slide 7: Company Overview
Company Overview 7
Slide 8: Awards and Recognitions
Awards and Recognitions NJ, CFASociety Gopal me Pakistan EINANCE (il) BosHan ASIAMONEY EW yi: ACCOUNT ~ Ws Jus — l INTERNATIONAL —_————— an IUFINANCE a, GIFAS, FES WORLD FINANCE TheBanker
Slide 9: 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 10: Performance Overview YoY September 2022
Performance Overview YoY September 2022 46% 55% 28.6 23% 7% 1.6 53% 44% 15.98 2.4 10
Slide 11: Key Performance Indicators - Deposits
Key Performance Indicators - Deposits Rs in Bn Deposit Growth Since Inception 1,657 1,569 1,456 Market Share of Deposits 7.3% (Sep’22) 1,254 CAGR Since Inception 35% (Dec’21) 933 785 667 559 468 379 230 288 131 169 34 55 70 100 5 8 14 23 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10
Slide 12: Meezan Bank vs Domestic Industry Deposits
Meezan Bank vs Domestic Industry Deposits ▪ CASA ratio of Meezan Bank has remained steady in 3rd Qtr. 2022 vs Year End Dec 2021. ▪ Steady growth of 17% in Current deposit vs Year End Dec 2021. ▪ Increase of more than Rs 800 Bn in CASA over the last 4 years. ▪ CA: Rs. 778 Bn | SA: Rs. 597 Bn | TD 282
Slide 13: Key Performance Indicators - Financing
Key Performance Indicators - Financing 1,000 Gross Financing & Infection Ratio 6.0% Strong NPL Coverage Ratio Rs in Bn 900 Rs in Bn 154% 24 5.0% 800 Sep 2022: Financing Market Share: 7.9% 873 139% 142% 139% 150% 827 22 700 777 133% 133% 140% 4.0% 20 128% 20 20 130% 19 18 118% 19 15 600 500 3.0% 16 1
Slide 14: Key Performance Indicators – Investment Rs 1.2 Trillion Up by 100%
Key Performance Indicators – Investment Rs 1.2 Trillion Up by 100% Investments (Rs in Bn) YTD Sep 22 CY21 Var. GoP Ijarah Sukuk (GIS) 1,065 398 168% Rs 1.06 tn Energy Sukuk & Other Govt. (PES) 156 197 (21%) Rs 398 bn Others (Shares , Corp sukuk etc) 23 26 (12%) Total 1,244 621 100% Rs 156 bn Rs 197
Slide 15: Key Performance Indicators - Profit
Key Performance Indicators - Profit Rs in Bn Profit After Tax 2011 - 2022 Last three years average growth in PAT 48% (2019 – 2021) 28.4 28.6 US $125 22.2 US $124 mn US $97 mn 15.2 mn 9.0 3.4 3.5 4.0 4.6 5.0 5.6 6.3 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q3 2022 YTD Rs in Bn Quarterly
Slide 16: Key Ratios (1/2)
Key Ratios (1/2) ROE - % ROA - % 40.2% 1.8% 38.3% 1.7% 1.7% 36.4% 1.6% 34.6% 1.5% 30.7% 23.8% 1.0% 0.9% 0.9% 19.6% 19.3% CY16 CY17 CY18 CY19 CY20 CY21 HY22 Q3'22 CY16 CY17 CY18 CY19 CY20 CY21 HY22 Q3'22 YTD YTD Income Efficiency Ratio - % Gross ADR - % 66.5% 70.0% 64.3% 62.9% 65.0% 59.3% 57.1% 60.0%
Slide 17: Key Ratios (2/2)
Key Ratios (2/2) Capital Adequacy Ratio % CAR 25. 0% 20. 0% 19.2% 17.8% 17.8% 17.8% 18. 0% 20. 0% 16.6% 16. 0% 14.5% 14. 0% 12.9% 12.9% 6.7% Excess 15. 0% 4.1% 6.3% 6.3% 5.3% 12. 0% 0.4% 0.4% 2.0% 1.0% 1.0% Additional 10. 0% 10. 0% D-SIB 8. 0% 6. 0% 5. 0% 4. 0% Minimum 2. 0% 12.5% 12.5% 12.5% 12.5%
Slide 18: Unconsolidated Statement Of Financial Position CY 2018 - YTD Sep 2022
Unconsolidated Statement Of Financial Position CY 2018 - YTD Sep 2022 Rs in Bn Balance Sheet CY18 CY19 CY20 CY21 2021/2020 YTD Sep 2022 2022/2021 Islamic Financing - Gross 522 507 532 777 46% 873 12% Less: Provisions (10) (13) (19) (19) 0% (21) 11% Islamic Financing - net 512 494 513 758 48% 852 12%
Slide 19: Unconsolidated Profit & Loss Statement CY 2018 - YTD Sep 2022
Unconsolidated Profit & Loss Statement CY 2018 - YTD Sep 2022 Rs in Bn P&L Statement CY18 CY19 CY20 CY21 2021/2020 YTD Sep 2022 Ann. 2022/2021 Policy rate 5.75% - 10.00% 10.00% - 13.25% 13.25% -7.00% 7.00% - 9.75% 9.75% - 15.00% Policy rate - Average 7.10% 11.99% 8.95% 7.29% 12.47% Profit / return e
Slide 20: Al-Meezan Investment Management Ltd (Meezan Bank’s subsidiary)
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 167,000 investors, ranging from institutions and businesses to individuals and
Slide 21: 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 21
Slide 22: Al-Meezan – Financial Performance
Al-Meezan – Financial Performance ✓ Largest Asset Management Company in Pakistan ✓ Established track record of over 27 years ✓ One of the largest investor base of over 167,000* investors ✓ Manages the largest open-end Shariah Compliant Income, Money Sep Dec ∆% Market & Voluntary Pension Fund 2022 20
Slide 23: Our Digital Footprint
Our Digital Footprint 23
Slide 24: Building Blocks for Digital Transformation & Innovation
Building Blocks for Digital Transformation & Innovation Objective To intelligently understand the banking needs of our customers and develop new business models providing new revenues and value producing opportunities for the bank through the use of new technologies and data Strategy Culture Intelli
Slide 25: Key Highlights and Achievements
Key Highlights and Achievements Meezan Bank is leveraging the latest technologies to strategically expand its reach, bring in newer product innovations, digitize its customers journeys and offer newer and simpler payment solutions. The Bank enjoys digital leadership in the following areas: ▪ Highest
Slide 26: Digital Channels Statistics (1/2)
Digital Channels Statistics (1/2) No in 000’s POS & E-Commerce Transactions 2.69 Million Total Cards 2,692 23,921 2,326 No of transactions in 000’s 23,474 1,991 1,505 1,305 1,175 11,248 8,222 5,337 3,034 CY17 CY18 CY19 CY20 CY21 CY22 Jan - Sep 22 CY17 CY18 CY19 CY20 CY21 Jan CY22- Sep 22 Jan to Sep
Slide 27: Digital Channels Statistics (2/2)
Digital Channels Statistics (2/2) MB = Mobile Banking IB= Internet Banking MB / IB - Volumes and Trans. doubled YoY. Card base at 2.69 Mn, with spend growing Monthly Active Mobile App Users ~70 113 mn (trxn) by 106% YoY % Sep 2022 23.92 mn (trxn) Unique Login up by 52% Jan to Sep 2022 Jan to Sep 202
Slide 28: Meezan Roshan Digital Account (RDA)
Meezan Roshan Digital Account (RDA) Simplified Digital Account Opening for Overseas Pakistanis Convenient & Riba-free Meezan Roshan Digital Account is an initiative led by the State Bank of Pakistan (SBP) for the ease of millions of Non-Resident Pakistanis (NRPs) residing across the world. It enable
Slide 29: Meezan Roshan Digital Journey
Meezan Roshan Digital Journey Remittances received through RDA ~ USD 1.3+ Bn (~25% of the industry) 1st Bank to Issue Islamic Naya Pakistan Certificate 1st Bank to Disburse Roshan Apna Ghar Financing 1st Bank to Disburse Roshan Apni Car Financing Provide Shariah Compliant Stock Trading Portfolio Pro
Slide 30: Roshan Digital Meezan vs Industry 2021 - 2022
Roshan Digital Meezan vs Industry 2021 - 2022 (Cumulative amount in USD million) - On average Meezan Bank’s share is 25% in funds received through RDA and accounts for 45% of investments in INPC (Cumulative # of accounts) - 17% of RDA accounts opened in industry comes from Meezan Bank 30
Slide 31: ESG Initiatives
ESG Initiatives 31
Slide 32: Environmental, Social and Governance Initiatives
Environmental, Social and Governance Initiatives The Bank is supporting the United Nations Sustainable Development Goals (SDG) to support its ESG initiatives Environmental Social - Access to affordable, reliable, sustainable and modern - COVID-19 Vaccination Drives - Bank in collaboration with energ
Slide 33: Distribution of Value Created by the Bank
Distribution of Value Created by the Bank In fulfilling our promise to our stakeholders, Meezan Bank distributes the value created in relevant and meaningful ways – and for some stakeholders, beyond financial means. Stakeholders receive intangible benefits ranging from employee upskilling programmes
Slide 34: Meezan as an Investment Opportunity
Meezan as an Investment Opportunity 34
Slide 35: Meezan as an Investment Opportunity
Meezan as an Investment Opportunity - The Best Performing Banking Stock over five years (Dec 2021) - Highest ROE in the Banking Industry for the last 5 years averaging more than 30% (Sep 2022) - Highest Market Capitilisation among banks in Pakistan - Highest Price to Book ratio among other Pakistani
Slide 36: Strategic Priorities
Strategic Priorities Continuing the Digitally Promoting Being the growth momentum Transforming the Financial Inclusion Thought Leader Using Big Data by focusing on Bank with in unbanked and in Islamic Banking Analytics and CASA mobilization continued underserved areas product Artificial (YTD Sep: 83
Slide 37: Thank You
Thank You 37