SBP al­lows Meezan Bank to ac­quire HSBC Bank Oman

The Pak Banker - - FRONT PAGE -

KARACHI: State Bank of Pak­istan has given green sig­nal to Meezan Bank to ac­quire HSBC Bank Oman (HBON), an in­di­rect 51 per­cent owned sub­sidiary of HSBC Hold­ing Plc. The bank was given per­mis­sion to con­duct due dili­gence in Novem­ber 2014 which was suc­cess­fully done in­clud­ing Sharia com­pli­ances. Meezan Bank in­tended to ex­pand its busi­ness glob­ally with ac­qui­si­tion of the shares in the in­ter­na­tional fi­nan­cial group HSBC Hold­ing. In Oc­to­ber 2014, the bank suc­cess­fully ac­quired HSBC Pak­istan's op­er­a­tion in ac­cor­dance with Sharia guide­lines in­clud­ing as­sets, de­posits, cus­tomers and branches net­work. The bank has be­come renowned to con­vert to con­ven­tional banks into Sharia mode in­clud­ing Pak­istan oper­a­tions of So­ci­ety Gen­erale (SG) - the French bank and HSBC Pak­istan.

Meezan Bank has been the undis­puted leader of Pak­istan's Is­lamic bank­ing in­dus­try for well over a decade and has al­ways fol­lowed the strat­egy of ag­gres­sively ex­pand­ing its branch net­work. Start­ing with a net­work of six branches in four cities, 12 years ago, the bank now has a net­work over 450 branches in more than 100 cities across Pak­istan, and has the coun­try's eighth largest branch bank­ing net­work. The bank is also Pak­istan's 11th largest bank in terms of de­posits. The bank's de­posits and branches have grown at an av­er­age rate of ap­prox­i­mately 50% per year over the last 11 years. Meezan Bank has never posted a loss in its en­tire 12 years of oper­a­tions de­spite the chal­leng­ing fi­nan­cial en­vi­ron­ment that has pushed the bot­tom line of many rep­utable banks into the red. The bank an­nounced Rs. 2.67 bil­lion profit for the half year ended June 30, 2015. Earn­ing per share of the Bank re­mained Rs. 2.67 (June 2014: Rs. 2.25). De­posits of the Bank in­creased by 14% from Rs. 380 bil­lion in De­cem­ber 2014 to Rs. 435 bil­lion in June 2015. As a re­sult of the strong prof­itabil­ity, the Board of Di­rec­tors ap­proved an in­terim cash div­i­dend of Rs 1.75 per share (i.e 17.5%), main­tain­ing the Bank's un­bro­ken pay­out record since its list­ing on the Stock Ex­change in the year 2000.

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