Meezan Bank Limited. · PSX:MEBL
Meezan Bank — Investor Presentation (September 2023)
39 slides from Meezan Bank's investor presentation, September 2023
Slide 1: Investors Presentation
September 2023 Investors Presentation Session 1
Slide 2: Index
Index S.No Table of Content Slide # 1 Islamic Finance Industry 3-6 2 Company Overview 7-26 3 Our Digital Footprint 27-31 4 Investment Opportunity & Strategic Priorities 32-34 2
Slide 3: Islamic Finance Industry
Islamic Finance Industry 3
Slide 4: Pakistan Islamic Banking Industry
Pakistan Islamic Banking Industry Islamic banking assets reached Rs 8.1 Trillion by the end of June 2023 : 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 by strong governm
Slide 5: Key Performance Indicators - Deposits
Key Performance Indicators - Deposits Rs in Bn Meezan's Growth in Comparison with islamic Banking Industry Share of Islamic Banking Industry 6,00 0 38% 36% 5,00 0 34% (15) Islamic 4,00 0 32% Windows of Meezan Bank Conventional Banks 33% 30% 32% 3,00 0 28% 2,00 0 26% (5) Other Islamic Banks 24% 35% 1
Slide 6: Islamic Banking vs Total Banking Industry of Pakistan – June 2023
Islamic Banking vs Total Banking Industry of Pakistan – June 2023 21.9% 19.9% Deposits Meezan Share Assets Meezan Share Meezan Bank: Rs. 1.9 Trn Meezan Bank: Rs. 2.8 Trn Total: 7.2% Total: 6.9% Islamic Banks: Rs. 5.9 Trn Islamic Banks: Rs. 8.1 Trn IB: 33% IB: 35% Conventional Banks: Rs. 20.9 Trn Con
Slide 7: Company Overview
Company Overview 7
Slide 8: 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 9: 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 10: Performance Overview – September 2023 Headlines
Performance Overview – September 2023 Headlines 103% 20% vs Sep-2022 Basic Earnings Per Share YoY Rs.58.0 billion Rs.2.9 trillion Rs.32.42 per share 21% vs Sep-2022 ADR Return on Equity Rs. 2.01 trillion 48% 57% Plus 43 vs Sep-2022 20 vs Sep-2022 New Branches New Cities Distribution to Shareholders
Slide 11: Performance Overview – September 2023 Headlines
Performance Overview – September 2023 Headlines Growth September 2023 September 2022 % Profit After Tax Rs 58.0 billion Rs 28.6 billion Rs 29.4 billion 103% Gross Financings Rs 957 billion Rs 873 billion Rs 84 billion 9% CASA Deposits Rs 1.78 Trillion Rs 1.38 Trillion Rs 402 billion 29% Deposits Rs
Slide 12: 103% Growth in PAT- Driven by Volumetric Growth and Higher Benchmark Rates
103% Growth in PAT- Driven by Volumetric Growth and Higher Benchmark Rates (Unconsolidated) Rs in mn Profit & Loss Account September 2023 September 2022 Growth % Average Policy Rate 20.25% 12.47% 62% Return on financings, investments and placements 303,817 153,879 97% Return on deposits and other du
Slide 13: 48% Growth in PAT- Q3'2023 vs Q2'2023
48% Growth in PAT- Q3’ 2023 vs Q2’ 2023 (Unconsolidated) Rs in mn Profit & Loss Account Q3' 23 Q2' 23 Growth % Average Policy Rate 22.00% 21.00% 5% Return on financings, investments and placements 120,832 101,032 20% Return on deposits and other dues expensed (56,765) (51,500) 10% Net spread earned
Slide 14: Key Performance Indicators – Profitability
Key Performance Indicators – Profitability (Unconsolidated) Rs in bn Sep 23: +103% Last three years average growth in PAT 44% (2019 – 2022) MEBL posted growth in profitability even in years where Policy Rate witnessed a decline +58% US $202 mn +28% US $ 156 mn +46% +69% +43% US $ 99 mn +13% +10% +11
Slide 15: Key Ratios
Key Ratios ROE - % ROA - % 57.6% 2.8% 44.6% 2.0% 36.4% 34.6% 1.7% 1.7% 30.7% 1.5% 23.8% 1.0% 19.6% 19.3% 0.9% 0.9% 2016 2017 2018 2019 2020 2021 2022 Sep-23 2016 2017 2018 2019 2020 2021 2022 Sep-23 Income Efficiency Ratio - % Gross ADR - % 62.9% 66.5% 59.3% 64.3% 55.2% 61.0% 57.1% 54.3% 53.4% 45.7%
Slide 16: 20% Growth in Assets Since Sep-2022 - Led by Higher Investments
20% Growth in Assets Since Sep-2022 - Led by Higher Investments (Unconsolidated) Rs in mn Balance Sheet Sep 2023 Sep 2022 Growth Dec 2022 Growth Islamic Financing and related assets - Gross 956,699 872,628 84,071 10% 1,018,102 (61,403) (6%) Less: Provisions (27,638) (20,289) (7,349) (36%) (22,594) (
Slide 17: Key Performance Indicators - Deposits
Key Performance Indicators - Deposits Rs in mn Deposit Growth Since Inception 2,010 `` Market Share of Deposits 7.6% (Sep ’23) CAGR Since Inception 34% (Dec’22) 1,658 1,456 1,254 933 785 667 468 559 288 379 169 230 55 70 100 131 5 8 14 23 34 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 201
Slide 18: Key Performance Indicators - Deposits
Key Performance Indicators - Deposits Sep 2023 Sep 2022 Growth Rs in bn Mix Rs in bn Mix Rs in bn % CA 981 49% 781 47% 200 26% CASA Deposits Grew by 29% SA 797 39% 595 36% 202 34% CASA 1,778 88% 1,376 83% 402 29% TD 232 12% 282 17% (50) (18%) Total 2,010 100% 1,658 100% 352 21% Sep 2023 TD, 12% Sep
Slide 19: Key Performance Indicators - Financing
Key Performance Indicators - Financing Rs in Bn Gross Financing & NPL Ratio Strong NPL Coverage Ratio 1,20 0 3.0 % 30 166% 171% 180 % 2.8% Sep 2023: Financing Market Share 8.1% 957 139% 142% 28 160 % 133% 133% 1,00 0 2.5 % 128% 25 1,018 118% 140 % 2.1% 800 1.9% 2.0 % 20 23 120 % 1.8% 1.7% 1.5% 19 19
Slide 20: Key Performance Indicators – Investment
Key Performance Indicators – Investment Rs 1.5 Trillion Up by 25% from Sep 2022 Investment Mix Investments (Rs in Bn) Sep 2023 Sep 2022 Var. Rs 1,388 bn 90% GIS GoP Ijarah Sukuk (GIS) 1,388 1,065 30% Rs 1,065 bn 86% Rs 143 bn 9% Energy Sukuk & Other Govt. (PES) 143 155 (8%) PES Rs 155bn 12% Others (
Slide 21: Key Ratios
Key Ratios Rs in mn 23.4% CAR Capital Adequacy Ratio % 17.8% 17.8% 18.4% 16.6% 11.9% 14.5% Excess 12.9% 12.9% 4.1% 6.3% 6.3% 6.4% 2.6% 2.3% 1.6% 0.5% Additional D-SIB 11.3% 11.9% 12.5% 11.5% 11.5% 11.5% 11.5% 10.7% Minimum Required 2016 2017 2018 2019 2020 2021 2022 Sep-23 *Sep-23: Not adjusted for
Slide 22: Branch Network Coverage Across Pakistan
Branch Network Coverage Across Pakistan :983 branches in 327 cities 05 As at September 30, 2023 Gilgit Baltistan 73 04 Sindh: 287 Branches KPK Punjab: 569 Branches 84 Baluchistan : 39 Branches KPK: 73 Branches 10 Gilgit Baltistan: 05 Branches AJK 08 AJK : 10 Branches Total : 983 Branches 569 Punjab
Slide 23: 27% Growth in Fee and Commission
27% Growth in Fee and Commission Rs in mn Fee, commission and other income September 2023 September 2022 Growth % Debit card related fees 5,822 4,032 44% Trade related fees and commissions 3,021 2,805 8% Branch banking customer fees 1,975 1,670 18% Fee income from subsidiary (AMIML) and related fund
Slide 24: Trade Business Volume Contracted by 9% Due to Ongoing Economic Conditions
Trade Business Volume Contracted by 9% Due to Ongoing Economic Conditions Rs in Bn Sep 2022 Sep 2023 1,019 59% 853 721 Rs. 1.74 54% Rs. 1.57 46% 41% 717 trillion trillion Import Export Import Export 24
Slide 25: 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 211,000 investors, ranging from institutions and businesses to individuals and
Slide 26: Al-Meezan – Financial Performance
Al-Meezan – Financial Performance Sep Sep ∆% 2023 2022 ✓ Largest Asset Management Company in Pakistan ✓ Established track record of over 28 years 335 214 57% AUMs - Rs Bn ✓ One of the largest investor base of over 211,000 investors Funds –Incl. plans (No.) 43 35 23% ✓ Manages the largest open-end Sh
Slide 27: Our Digital Footprint
Our Digital Footprint 27
Slide 28: 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 29: Digital Channels Statistics (1/3)
Digital Channels Statistics (1/3) No’s No in mn’s 3.05 Millions Total Debit Cards POS Merchant Deployment Mobile App Active Users 16,433 No in 000’s 3,055 15,013 2,813 1.70 1.65 12,300 1.51 1.56 2,326 1.38 1,991 8,992 1,505 1,305 1,175 5,104 23% Growth in Mobile App Active users From Sep-22 to Sep-2
Slide 30: Digital Channels Statistics (2/3)
Digital Channels Statistics (2/3) No. in Mn POS Acquiring – Spend & Transactions EPG - Spend & Transactions (Quarterly) Digital Bill Payments Transactions (Quarterly) 2,00 0 300 10.26 7.00 35.00 1,80 0 239 5.78 250 9.84 6.00 5.23 30.00 1,60 0 196 9.56 9.38 1,40 0 5.00 25.00 200 3.55 1,20 0 4.00 20.0
Slide 31: Digital Channels Statistics (3/3)
Digital Channels Statistics (3/3) Values in Tn Values in Bn No. in Mn IB / MB Value Growth (Quarterly) 3.53 Card Base Spending Value 62 Digital Transfer Transactions P2P 3.11 56 60.90 2.89 50 54.99 44 51.18 2.24 39 43.73 1.71 34.78 Q3 - 2022 Q4 - 2022 Q1 - 2023 Q2 - 2023 Q3 - 2022 2023 Q3 - 2022 Q4
Slide 32: Meezan as an Investment Opportunity
BEST BANK OF PAKISTAN Meezan as an Investment Opportunity Meezan Bank The Premier Islamic Bank FO
Slide 33: 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 34: Thank You
Thank You 34
Slide 35: Appendix
Appendix 35
Slide 36: Last Six Years Performance
Last Six Years Performance 36
Slide 37: Unconsolidated Statement of Financial Position: 2016 - Sep 2023
Unconsolidated Statement of Financial Position: 2016 - Sep 2023 Rs in Bn Balance Sheet 2016 2017 2018 2019 2020 2021 2022 Sep 2023 Cash and Balances with Banks 68,058 69,452 73,277 107,566 155,689 186,921 131,419 199,591 Due from FIs 129,115 147,229 184,815 223,689 342,069 238,402 34,964 34,964 Inve
Slide 38: Unconsolidated Profit & Loss Statement: 2016 – Sep 2023
Unconsolidated Profit & Loss Statement: 2016 – Sep 2023 Rs in Bn P&L Statement 2016 2017 2018 2019 2020 2021 2022 Sep 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 39: Key Ratios: 2016 – Sep 2023
Key Ratios: 2016 – Sep 2023 Key Ratios - % 2016 2017 2018 2019 2020 2021 2022 Sep 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 29.9 Branches opened 20 30 59 100 55