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Term Report: Meezan Bank

Syed Ali Shahzaib Rizvi (20191-25952)

Faraz Imran (20191-)
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TABLE OF CONTENTS

 EXECTIVE SUMMERY ……………………………………………………….

 INTRODUCTION ……………………………………………………………….
 BODY………………………………………………………………………………..
- FINANCIAL ANALYSIS
- NON-FINANCIAL ANALYSIS
 RECOMMENDATIONS ………………………………………………………
 CONCLUSION…………………………………………………………………….
 REFRENCE LIST …………………………………………………………………

Index
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Executive Summary
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Introduction
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Financial Activities

 Vertical Financial Analysis

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 Horizontal Activities
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 Profitability Ratios
It is the measure of profitability. It measures the company’s performance. It is very important for the
company to make profit because shareholders required the return for the amount they invested in the
company. Profitability simply is the ability of an organization or a company to make a profit, and it is the
leftover form the earned income after all the expenses and costs are deducted.

Net Profit Margin

2016 2017 Profit Margin
5562 6313 14

Net Profit 2016 & 2017 Comparision

6400

6200

6000

5800

5600

5400

5200

5000
2016 2017

Net Profit 2016 in millions Column1

In 2017 the net profit was 6313 million and it was 5562 million in 2016 and their profitability ratio is
13.5% rounded of to 14% .
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 Earning Per Share

It’s also called EPS. It is an important financial term. It measures the profitability of a company.
EPS includes all convertible debts and securities, options as well as warrants. The following
table shows EPS of Meezan Bank
Year Earnings Per Share
2016 5.45
2017 6.13

There is an increase of 13% in Earning per Share of Meezan Bank from 2016 to 2017.

[ CITATION Mee17 \l 1033 ]

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 Liquidity Ratios
Current Ratios
A current ratio is defined as the liquidity ratio that measures the ability of a company to pay short
term obligations.
CURRENT RATIOS= CURRENT ASSETS/ CURRENT LIABILITIES

(To calculate Current Ratios we need current asset and liabilities values.)

Current Asset

Meezan Banks total assets for the year 2017 were 781 million whereas in 2016 their total assets were
657 million which means their total assets increased by worth of 124 million.
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Current Liabilities

Total Liablities in millions

800000

700000

600000

500000

400000

300000

200000

100000

0
2012 2013 2014 2015 2016 2017

Liablities Column1

Current Liabilities of Meezan Bank have increased from 627293 million to 746622 million.

Current Ratios

Year Current Asset Current Liabilities Current Ratio

2017 781,699 746222 1.04
2016 657767 627693 1.047
2015 531,850 505,503 1.05
2014 437510 413620 1.0577
2013 329725 310,812 1.06
2012 274437 257874 1.064

The above ratios shows that the current ratios of Meezan Bank is above for 5 years. This shows that
company have financial resources to remain solvent for short term.
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Quick Ratios
Inventory

Quick Ratio
A quick ratio is a type of liquidity ratio which measures the capability of a company utilize its
near cash assets or the fixed cash assets to retire immediately its current liability.

QUICK RATIO= (CURRENT ASSET- INVENTORY)/ CURRENT LIABILITIES

Year Current Asset CA - Inventories Liabilities Quick Ratio

2017 781699 759916.188 746222 1.018
2016 657767 641984.298 627693 1.022

Quick ratio of more than 1 shows us that according to current asset, liabilities and inventories Meezan
bank can instantly get rid of their liabilities in 2016 and 2017.
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 Revenue and Profit

Year Meezan Bank Annual Revenue in millions
2016 23,731
2017 27,071

The Annual Revenue of Meezan Bank was Rs 23,731,000 in 2016 and Rs 27,071,000 in 2017 which
means that the revenue has increased 14.07%.

Financial Results of Meezan Bank

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Non-Financial Activities

 Business Continuity Plan

The Business Continuity Management (BCM) is a process of creating a system of prevention and
recovery from potential threats and critical situations. In Meezan Bank the business continuity
is managed at 3 levels which are strategic, tactical and operational level. It involves
documented plans and effective decision making, coordinated efforts and operational
continuity. The Bank has in place a comprehensive business continuity framework with clear set
of governance structure, business continuity and information technology disaster recovery
plans. They have also clearly defined roles and responsibilities of individuals and teams for
disaster response, recovery, resumption and restoration of activities to a pre-defined level of
operation following disruption.. Having a BCM framework in place helps the Bank to ensure
safety of human resources, protection of critical assets and resumption of mission critical
activities from alternate processing sites in case the primary sites are not accessible or
available. In Meezan Bank, the first priority is always is to ensure the safety of human life in
case of any disaster. Detailed business continuity including information disaster recovery plans
have been established with the approval of the Board of Directors. The Bank has also
established Alternate Processing Sites at three different locations within Karachi with the
overall objective to ensure resumption of Mission Critical Activities (MCAs) in case of disaster. IT
disaster recovery is managed from Islamabad. The Bank’s BCM team continuously strives to
improve upon business continuity readiness of the Bank. During the year, the Bank continued
testing the effectiveness of business continuity arrangements through periodic drills,
performance of critical operations from alternate sites, information technology disaster
management activities as well as evacuation exercises. Branch evacuation procedures have
been further refined and emergency response teams have been streamlined. The Bank
conducted evacuation drills for its entire branch network that enables the Bank to test the
resilience against unforeseen hazardous eventualities. Outcomes of drills are documented and
necessary improvements are an on-going process. This strengthens the confidence of
stakeholders regarding the availability of products and services under stress scenarios and
embeds business continuity within the organizational culture of the Bank.
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 Customer Care: Product and Services

Internet Banking
Meezan have developed a secured and efficient Internet Banking facility offering suite of
features such account statement views, payment of utility bills with Quick Pay and fund transfer
facility. From 2017 customers can also invest and redeem funds from Al Meezan mutual funds.

Mobile Banking App

Meezan Bank have developed Mobile banking app which is available on both Android and IOS.
It is very fast and compatible with all major Android and IOS versions. In 2017 they have worked
on its efficiency and effectiveness. App allows customers to check their credit, pay bills, transfer
funds etc.

Secure e-Commerce Payments

Meezan Debit Cards now offer secure and seamless online shopping experience via Verified by
Visa and Mastercard Secure Code service. This latest technology ensures online safety by
authenticating transactions through a unique code sent to customers registered mobile or
email address; eliminating the need for Web Pay Session activation.

SMS Banking
Meezan SMS Banking is an interactive service that allows our customers to access their account
on demand anytime, anywhere from their mobile phone.

Ladies Banking
Meezan Bank is the first bank in the country to introduce Ladies Banking a dedicated banking
section only for ladies. The new service provides exclusive banking area as per the set of
Shariah principles for female customers in comfortable environment.
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Recommdations
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Conclusion
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Reference list
https://www.meezanbank.com/wp-content/themes/mbl/downloads/annualreport2017.pdf
[ CITATION Mee17 \l 1033 ]

https://www.slideshare.net/arfan_ash/meezan-bank-65639516
[ CITATION Sli15 \l 1033 ]