Meezan Bank (MEBL) is expected to announce profit after tax of Rs24.2 billion (EPS: Rs17.0) for CY20 as against Rs15.7 billion (EPS: Rs11.0) for the same period last year. MEBL is also expected to announce dividend at R4.0/share.
For 4QCY20, analysts expect earnings of Rs5.8 billion (EPS: Rs4.1), down 15.8%QoQ but up 18.4%YoY. The sequential basis is formed by Gross interest income undergoing re-pricing adjustment though limited (down 9.8%QoQ), benefiting from June 2020 issuance of Energy Sukuk II (which is likely to be re-priced in 1QCY21).
Net interest margin is likely to slip to 5.3%, one percentage point lower on QoQ basis. Non funded income is likely to increase by 16.4%QoQ with components capitalizing on resumption of economic activities. The continued waiver on internet transaction fee remains a drag.