MEEZAN BANK LIMITED. Unlocking the True Potential of Islamic Banking. INVESTOR PRESENTATION June 2018

Transcription

1 Unlocking the True Potential of Islamic Banking INVESTOR PRESENTATION June 2018

2 MEEZAN BANK: VISION MISSION AND VALUES Vision: Establish Islamic Banking as banking of first choice... Quaid s View on Islamic Banking We must work our destiny in our own way and present to the world an economic system based on true Islamic concept of equality of manhood and social justice. Core Values Shariah-compliance, Integrity, Professionalism, Innovation, Service Experience, Social Responsibility Mission: To be a premier Islamic bank, offering a one-stop shop for innovative value-added products and services to our customer within the bounds of Shariah 02

3 MEEZAN BANK: AN OVERVIEW Fastest growing Commercial Bank of the Country Largest Islamic Bank in Pakistan 36% Market Share 1 Largest Islamic retail banking network more than 600 branches in over 150 cities 7 th Largest Bank in Pakistan in terms of deposits amongst both Islamic as well as Conventional Banks AA+ credit (long-term) The only full fledged Islamic Bank with AA+ credit rating in the Islamic Banking Industry of Pakistan Shariah Board Consists of members leading the development of Islamic Finance worldwide Islamic Banking Research and advisory services Recognized for product development capability and innovation Al Meezan Investment Management Limited Majority stake in one of the largest and fastest growing AMC s in Pakistan % share of total Islamic Banking Deposits

4 MEEZAN BANK: BUSINESS AND OPERATIONS 360 DEGREE OFFERING & Transaction Foreign Exchange, Money Market Online Collections And Payments Solutions Equity PCM Operating Operating services services Retail Payroll Services, Employee Banking, Cash Management Consumer Finance M&A Financial Advisory M&A THE CLIENT Trade Trade Finance Debt Project Finance, Syndication, Arrangements & Distribution Wealth Mgmt. Import / Export, Guarantees, Branchless Banking, SME & Supply Chain Finance Investment Advisory, Mutual Funds Management 04

5 MEEZAN BANK: CONTRIBUTION TO UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS Through its commercial partnership with Deutsche Gesellschaft für International Zusammenarbeit and Vocational Training Institute for Women (VTIW); Meezan Bank has aimed to empower the underprivileged female individuals of the society enabling them to earn a livelihood for themselves and their families Through its strategic initiatives Centres for Excellence in Islamic Finance at Lahore University of Management Sciences (LUMS), Institute of Business Administration (IBA) and IM Sciences (Peshawar), the Bank is making a substantial contribution in increasing the relevant skills for employment and entrepreneurship of youth in the country Through its focus on financing green energy projects in the country such as green energy wind farms and hydro power projects, the Bank is creating opportunities for modern and sustainable energy services and promoting investment in energy infrastructure and clean energy technology Through its focus on employee development, training and championing public education and awareness regarding finance, the Bank is not only promoting a healthy work environment but also strengthening the country s economy by expanding the access of individuals to Islamic Banking As Pakistan s first Bank to Partner with Karandaaz Pakistan for specialized Supply Chain Partnership Program, the Bank is strengthening domestic resource mobilization as well as mobilizing financial resources for SMEs in the country 05

6 MEEZAN BANK: LEADING INDICATORS 1.85x Deposit Growth of total banking industry 5yr 1.64x Asset Growth of total banking industry 2.15x Deposit Growth of total banking industry 10yr 3.27x Advances Growth of total banking industry 14% Branch Network growth fastest in industry (5yr) 1.89x Equity Growth of total banking industry 36% Share of Islamic Deposits leading the industry 20% ROE one of the leading industry returns 06

7 MEEZAN BANK: A JOURNEY OF 16YRS 2002 acquires Societe Generale Pakistan, a leading French Bank Founded in 1997 as an Investment Bank. Commences Commercial Banking operations in 2002 Issued first Islamic Commercial Banking license by the SBP in Commences Consumer business banking 2003 Al Meezan Investment Management Ltd., a leading AMC*, becomes a subsidiary Branch milestone achieved th Largest bank in Pakistan in terms of Branch network 2016 Issues Rs. 7bn Tier II Sukuk based on Modaraba Acquires Pakistan operations of HSBC Middle East and Oman 2014/ branches by December th largest Bank by deposits, in Pakistan 2018 Issued Pakistan s first ever Shariah Compliant Rs. 7bn Additional Tier I Sukuk 07 *AMC Asset Management Company

8 MEEZAN BANK: AWARDS AND RECOGNITIONS 08

9 MEEZAN BANK: SHAREHOLDERS A Kuwaiti investment company engaged in investment and financial activities primarily in Kuwait, the Middle East, Asia and other emerging markets Leading financial house, a joint venture between Government of Pakistan and Kuwait Long term rating: AAA Islamic Development Bank, Jeddah is an International Financial Institution established in 1975 to foster economic development and social progress in member (Islamic) countries. Other Shareholders 09

10 MEEZAN BANK: CREDIT RATING Long Term Rating: AA+ Stable Outlook AA AA+ AA- A+ Long Term A-1+ Short Term Rating: A-1+ Stable Outlook A1 Short Term

11 EVOLVING VIGOROUSLY 11

12 MEEZAN BANK: EXPONENTIAL AND SUSTAINABLE GROWTH Meezan Bank Deposits Rs. Billion 673 Meezan s deposits have grown at a CAGR of 24% over the last 5 years and at a CAGR of 28% over the last 10 years Compared to the banking industry Meezan s growth of deposits is 1.85x over the last 5 years and 2.15x over the last 10 years CY12 CY13 CY14 CY15 CY16 CY17 Meezan Bank Advances Rs. Billion Meezan s Advances have grown at a CAGR of 36% over the last 5 years Compared to the banking industry Meezan s growth in advances is 3.27x over the last 5 years CY12 CY13 CY14 CY15 CY16 CY17 12

13 6.0 % 5.0 % 4.0 % 3.0 % 2.0 % 1.0 % 0.0 % MEEZAN BANK: EXPONENTIAL AND SUSTAINABLE GROWTH Meezan Bank Assets Rs. Billion Meezan s Assets have grown at a CAGR of 23% over the last 5 years Compared to the banking industry Meezan s growth of Assets is 1.64x over the last 5 years CY12 CY13 CY14 CY15 CY16 CY17 Infection Ratio % age 5.3% The attractive risk-return profile of the Bank evident from the high growth in the financing portfolio coupled with one of the lowest Infection ratio in the Banking Industry 3.6% 3.8% 3.3% 2.1% 1.5% CY12 CY13 CY14 CY15 CY16 CY17 Infection Ratio 13

14 MEEZAN BANK: EXPONENTIAL AND SUSTAINABLE GROWTH Total Revenue Rs. Billion 28 Meezan s Revenue has grown at a CAGR of 18% over the last 5 years and at a CAGR of 24% over the last 10 years CY12 CY13 CY14 CY15 CY16 CY17 Meezan Bank Profits Rs. Billion In CY17 Bank posted a profit after tax of PKR 6.31 billion compared to PKR 5.56 billion in the previous year, a healthy growth of 14% The high profit is primarily due to the Bank s continued focus to increase its financings portfolio while maintaining a lower NPL Ratio 14 Source: Audited Financial Statements, 31 December 2017 CY12 CY13 CY14 CY15 CY16 CY17

15 MEEZAN BANK: EXPONENTIAL AND SUSTAINABLE GROWTH Pay-out Ratio 43% 51% 60% 60% 55% Rs. Billion 49% Profit growth is coupled with high and stable payout ratio Cash dividend payout ratio is greater than 40% in all the years presented CY12 CY13 CY14 CY15 CY16 CY17 Meezan Bank s ROE % age % Despite the low discount rates the Bank has maintained an attractive ROE 30% 25% 20% 15% 10% 13% 18% 10% 28% 20% 5% 0% CY03 CY05 CY07 CY09 CY11 CY13 CY15 CY17 15 Source: Audited Financial Statements, 31 December 2017

16 MEEZAN BANK: EXPONENTIAL AND SUSTAINABLE GROWTH Meezan Bank Equity Rs. Billion 34 Meezan s Equity has grown at a CAGR of 17% over the last 5 years Compared to the banking industry Meezan s growth in Equity is 1.89x over the last 5 years Capital Adequacy Ratio Rs Billion % age CY12 CY13 CY14 CY15 CY16 CY17 Comfortable Capital Adequacy Ratio 14.08% 12.91% 14.12% 12.50% 12.89% 11.88% 10.98% 11.28% 11.90% 10.00% 10.25% 10.65% 10.00% 10.00% Meezan also issued Pakistan s First Ever Shariah-compliant additional Tier 1 Sukuk in 2018 which further strengthens the bank capital base CY12 CY13 CY14 CY15 CY16 CY17 CY18 (P) Bank s CAR Required CAR 16

17 MEEZAN BANK: FASTEST GROWING BRANCH NETWORK IN THE INDUSTRY Network of branches Market Share % age Meezan Bank Islamic Windows Islamic Banks 39% 36% CY12 CY13 CY14 CY15 CY16 CY17 More than 300 branches have been opened in the last six years Branch Network has grown at a CAGR of 14% over the last 5 years Presence is in more than 150 cities 25% Meezan Bank accounts for approx. 36% of the Total Islamic Deposits in Pakistan as of CY17, signifying market leadership 17

18 MEEZAN BANK: SHARE OF ISLAMIC DEPOSITS Market Share Meezan Bank has maintained stable market share 46% 41% 37% 35% 35% 34% 33% 33% 33% 36% 34% 36% 36% 54% 59% 63% 65% 65% 66% 67% 67% 67% 64% 66% 64% 64% CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 Total Islamic Banking Industry Meezan Bank as a % of Islamic deposits (Islamic banks and Islamic banking windows) 18

19 MEEZAN BANK: CASA MIX 100% Fixed Savings Current 90% 80% 23% 24% 23% 30% 29% 29% 29% 26% 28% 31% 32% 35% 35% 70% 60% 50% 40% 48% 39% 38% 36% 39% 37% 37% 40% 41% 41% 40% 40% 40% 30% 20% 10% 29% 37% 39% 34% 32% 34% 34% 34% 31% 28% 28% 25% 25% 0% CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 19

20 20 AL MEEZAN INVESTMENTS: A SUBSIDIARY OF MEEZAN BANK

21 ABOUT BANK S SUBSIDIARY: AL MEEZAN INVESTMENTS Since its inception in 1995, it has the distinction of being the only AMC in Pakistan with the exclusive mandate of providing Shariah compliant investment solutions to its investors AM1 Rating (from JCR-VIS), the first AMC to be awarded the highest possible asset management quality rating One of the largest private sector AMCs currently managing over Rs. 100 billion with longest track record of over 23 years of experience in Asset Management and Investment Advisory Largest Private Sector AMC with Approximately Rs. 93 Billion Assets Under Management Shariah Board consists of members who are playing the leading role in the development of Islamic Finance worldwide Has one of the largest investor base of over 70,000 investors along with the consistently high performing funds providing competitive returns Developed the first Shariah Compliant Index (KMI-30) in collaboration with KSE (now PSX) 21 Figures are as of Dec 2017

22 ABOUT BANK S SUBSIDIARY: RECENT AWARDS S.No. Description of Award Given By Announced in 1 The Award for Maximum Mutual Fund IPO s SAFE PSX Pakistan IPO Summit Pakistan s Financial Services Firm of the Year 2016 AI Global Media publication Best of the Best in Finance Award-Pakistan 2016 AI Global Media publication Best Private Sector Asset Management & Investment Firm 2016 Pakistan Wealth & Finance-Int l Best Investment Advisory Firm 2016 Pakistan Wealth & Finance-Int l Excellence in Equity Award Investor Review Magazine Shariah Compliant Investment Company of the Year- Pakistan 2016 The European Pension Reforms Award-2016 Pension & Investment World Pension Summit 9 Meezan Gold Fund- Product of the Year Award IFFSA Awards, Islamic Finance Forum of South Asia Figures are as of Dec 2017

23 ABOUT BANK S SUBSIDIARY: AL MEEZAN INVESTMENTS Al Meezan (16%) Market Share-Total Industry Other Players (84%) AUMs and Trend in Market Share of Overall Industry Market Share-Islamic Industry Al Meezan (40%) Other Players (60%) 23 Figures as of June 30, (Rs. Billion)

24 THANK YOU 24