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2

Topic

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Group Members1)H.M Aqib Munir (BC13-

201) 2)Gulzar Ahmad

(BC13-202) 3)Umar Farooq (BC13-

216)4)Faisal Mehmood Khan (BC13-

221)

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HistoryIn 1947 the inception of Pakistan as the first Islamic Republic

created in the name of Islam. In 1991 Procedure adopted by banks in 1985 was declared un-

Islamic by the Federal Shariat Court (FSC). In 1997 Al-Meezan Investment Bank is established with a

mandate to pursue Islamic Banking. In 2002 Al Meezan Investment Bank converts itself into a full-

fledged Islamic commercial bank.

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Introduction of the Bank

• Meezan Bank establishes itself as the pioneer of Islamic Banking in Pakistan and quickly establishes branches in all major cities of the country. • A wide range of products are developed and launched

consolidating the Bank’s position as the premier Islamic Bank of the country • Al Meezan Investment Management Limited (AMIM), the asset

management arm of Meezan Bank, introduces Meezan Islamic Fund (MIF), the country’s first open-end Islamic Mutual Fund.

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Executive Summary•Our Mission •Our Vision•Our Objectives

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Directors Board of Directors

• Sheikh Ebrahim Bin Khalifa Al-Khalifa• Naser Abdul Mohsen Al-Marri (Vice

Chairman)• Yousif Saleh Khalaf• Zaigham Mahmood Rizvi• Tarik Kivanc• Mazen Khalid Al-Braikan • Irfan Siddiqui

Shariah Board • Justice (Retd.) Muhammad Taqi

Usmani• Dr. Abdul Sattar Abu Ghuddah• Sheikh Essam M- Ishaq• Dr.Muhammad Imran Usmani

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Description of No. of Branches and Operation

• With over 428 branches in 117 cities across.• Meezan Bank is the largest Islamic Bank

and the 8th largest Bank.• Milestone-------Islamic Banking in Pakistan.• Extensive network, existing & potential

customers. • Real-time online Banking facilities.

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Performance Rewards

•Multiple International Awards by Asset Triple A --- Hong Kong• 'Best Islamic Bank'• 'Best Islamic Retail Bank' • 'Best Islamic Trade Finance

Bank'

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Performance Rewards (Cont’d)

• 'Best Islamic Bank in Pakistan’• By Islamic Finance

News of RED money Group, Malaysia.

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Islamic Mode of Finance

•Mudarabah•Musharka•Ijrah •Takaful

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Introduction of Products and Services

Types of Products:• Meezan Rupee Recent Bank A/C• Karobari Munafa Bank A/C• Meezan Company Plus Bank A/C• Meezan Business Plus A/C• Meezan Kids Golf Club Bank A/C• Meezan Bachat Bank A/C

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Introduction of Products and Services(Cont’d)

Types of Products:• Meezan Adolescents Golf Club Bank A/C• Foreign exchange Recent Bank A/C• Car or truck Ijarah• Meezan VISA Debit Credit card• Debit Credit card

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Introduction of Products and Services(Cont’d)

Types of Services:• Portable Banking App• Meezan ATM Multilevel• World wide web Banking• Meezan Quick Pay• TXT Banking• TXT Notifies

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Market share• Meezan accounts for

approximately 50% of the market shares----Islamic Banks.• The Board appreciated the

excellent performance of the Bank despite difficult market and economic conditions.

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Share holding Structure of the Bank

4924; 49%

3008; 30%

935; 9%

1160; 12%Rs. in Millions

Noor financial investment Co. Kuwait

Pakistan Kuwait investment company (pvt)Ltd

Islamic development Pakistan Jeddah

Others

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Performance of Meezan Bank

  Description 2014 2013 Growth       

Branch Network 428 Branches 351 Branches 22%      

Presence 117 Cities 103 Cities 14%       

Deposits Rs. 380 Billion Rs. 290 Billion 31%       

Total Assets Rs. 437 Billion Rs. 330 Billion 33%       

Profit After Tax Rs. 4.57 Billion Rs. 3.96 Billion 16%       

Equity Rs. 23.3 Billion Rs. 17.9 Billion 30%       

Trade Business (Import and Export) Rs. 376 Billion Rs. 315 Billion 19%

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Financial Analysis• Pakistan has continued to suffer

from the fallout of the international financial crises that began in 2008.

• The instability of the economy has also affected the bank to some extent.

• Current year’s profit rating shows the managements’ effective policies and viability.

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Financial Analysis (Ratios)

• Return on Equity• Return on Assets• Earnings Per Share• Market Price per Share• Book Value per Share• Net Profit Before Tax Margin• Net Profit after Tax Margin• Operating Expenses to Income

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1) Return on Equity (ROE)

2013 2012 20110%

20%

40%

60%

80%

100%

22.09 22.64 25.25

ROE

ROEYears

Perc

enta

ge

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2) Return on Assets (ROA)

2013 2102 2011

1.2

1.27 1.2

3

Series1

YEARS

Am

ount

in %

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3) Earning Per Share (EPS)

2013 2012 20113.7

3.8

3.9

4

4.1

4.2

4.3

3.95 3.88

4.22EPS

EPS Linear (EPS)

Ear

ning

Per

Sha

re

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4) Market Price Per Share

2013

2012

2011

0 5 10 15 20 25 30 35 40 45

39.3830.05

17.38

MPS

MPS Linear (MPS)

Market Price Per Share

Year

s

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5) Book Value Per Share

2013 2012 20111.55

1.6

1.65

1.7

1.75

1.8 1.78

1.711.65

BVPS

Boo

k V

alue

Per

Sh

are

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6) Net Profit before Tax

20132012

2011

20.5

21

21.5

22

22.5

23

22.58

21.5721.21

Net Profit Before Tax

Net Profit Before Tax

YearsPerc

enta

ge

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7) Net Profit after Tax

2013, 0.1438, 32%

2012, 0.1447, 32%

2011, 0.1651, 36%

Net Profit After Tax

2013

2012

2011

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8) Operating Expenses to Income

2013 2012 201145

50

55

6059.39

55.9751.6

Operating Expenses to IncomeOperating Expenses to Income

Years

Ope

rati

ng E

xp t

o In

com

e

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Major Competitors • Bank Islami Pakistan

Limited• Albaraka Islamic Bank

B.S.C. (E.C.), Pakistan Operations • Dubai Islamic Bank Pakistan

Limited• Dawood Islamic Bank

Limited• Emirates Global Islamic

Bank

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Comparison of Meezan Bank With Competitors

WorthName of the Banks Assets Deposits Equity in millions 

Meezan 329,725 289,811 10027 

Dib Limited 32,607 25,451 5,262 

Dawood islamic Limited 13,777 7,370 5,051

Al Baraka 

25,604 19,574 2,194

Bank Islami 

29,094 22,861 4,823

Emirates global Islamic bank 20,185 14,820 3,659

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MCAP or Market Cap

• Market  capitalization represents the aggregate value of a company or stock.

• No of outstanding share/current price per share.

• Types Large Cap(Usually $5 billion and above)  Mid Cap (Usually $1 billion to $5 billion) Small Cap(Usually less than $1 billion)

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SWOT Analysis

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Strengths

• Privilege of being the first in the Islamic Banking sector.

• Renowned Shariah Scholars.• Every branch is your own branch.• Value added features in the products.• Employees provide flawless customer

service

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Weaknesses• Lack of proper marketi ng

strategy.• Delayed performance of the

departments.• High employee turnover rate.• Excess liquidity.• Within the branches needs to

be worked out.

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Opportunities

• Increasing growth of the Islamic banking sector

• MBL can capitalize its first mover’s advantage

• Development of shariah compliant products

• New markets to explore.• Opportunities are available in the

remote area as compared to the big cities.

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Threats • Economic downfall of the country.• New entrants.• Minimum capital requirement• Acceptability of Islamic banking as it is

still an emerging concept in Pakistan.• If the growth of the Islamic banking

sector is an opportunity, it is in the meanwhile threat as well.

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Suggestion & Recommendation

• Expand its business, by increasing its deposit portfolio through aggressive market penetration strategies. • Meezan Bank Limited needs to

improve its website.• Management should distribute work

equally among different employees.

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Conclusion • The organization has been not growing both in size and profit for

past few years and but repute in the market is good. The employee turnover is very high which they have to cut down as they are losing a number of good trained employees due to its poor policy. The year 2007 is expected to offer increased competition in the secured assets business as more Islamic banks are in the market. With their focused strategy and product development initiatives planned for the year, Meezan Bank is strongly positioned to meet these challenges. The bank has very well repute in the market. Overall bank is going well and doing a good business but there are few problems for that I have tried to give few recommendations that might help company to improve.

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