JS Securities Limited – Result Review Banking

Karachi, October 28, 2016 (PPI-OT): MEBL: 3Q2016 EPS posts 12% YoY growth, clocks in at Rs1.42

Meezan Bank Ltd (MEBL) announced its 3Q2016 result today posting PAT of Rs1.43bn (EPS: Rs1.42), registering 12% YoY growth and taking 9M2016 EPS to Rs4.10 (+4% YoY). The bank announced no cash dividend with the result, keeping 9M2016 dividend at Rs1.75/share.

MEBL’s 3Q2016 Net Interest Income (NII) grew by 6% YoY to Rs4.56bn while Non-Interest Income posted an impressive growth of 21% YoY on 7% YoY growth in Fee Income and higher realized capital gains. The bank also posted 12% YoY growth in Operating Expenses, marking a slor pace than historic average growth of 20%. In-line with the industry trend and its own trend during 2016, MEBL booked reversals under provisioning expenses during 3Q2016.JS Securities Limited maintains our ‘Buy’ ra JS Securities Limited’s ting on the stock with a TP of Rs59.