FINANCIAL INSTITUTIONS & MARKETS

MEEZAN BANK PROPOSAL

SUBMITTED BY
MISBAH HAROON (NIM-BBA-2019-22)
ALVEENA BASHEER (NIM-BBA-2020-13)
AJMAL RAFIQUE (NIM-BBA-2020-14)
 Introduction of the company
Meezan Bank is Pakistan's largest dedicated bank. It was founded on January 27, 1997. Mr. Irfan
Siddiqui is the founding President and CEO of Meezan Bank. Meezan Bank became the first
Islamic bank in Pakistan, in 2002.
History:
The bank started as an investment bank and was also known as Al-Meezan Investment Bank.
In 2002, Meezan Bank acquired the Pakistan operations of Societe Generale. In 2014, Meezan
Bank signed an agreement with HSB Bank Middle East to acquire HSBC's Pakistan operations
consisting of 10 branches. Then they got approval from the state-bank of Pakistan as the first
Islamic bank.
In 2015, Meezan Bank acquired the Pakistan operations of HSBC Oman consisting of a single
branch.
Vision:
Establish Islamic banking as banking of first choice to facilitate the implementation of an equitable
economic system, providing a strong foundation for establishing a fair and just society for
mankind.
Mission:
To be a premier Islamic bank, offering a one-stop shop for innovative value-added products and
services to our customers within the bounds of Shariah, while optimizing the stakeholder’s value
through an organizational culture based on learning, fairness, respect for individual enterprise, and
performance.
Values:
Shariah-compliance, Integrity, Service Excellence.
Reasons behind Growth:
Meezan bank was the first bank that provided an Islamic banking system. Therefore Meezan bank
is the fastest-growing financial institution in the banking sector of Pakistan. Shariah compliance
is the major reason behind their growth. Their success over the years is the result of their dedicated
approach to nurturing and developing human resources, whom they consider being an integral asset to
the organization. Meezan bank three times got the best bank award, even most recently in the year
2022.
Target market:
 They target their depositors and retail investors that actually want a completely Islamic banking
system.
Major Offerings (Shariah-compliant Advisory Products):
Depending upon customers’ requirements, we provide arrangement, shariah structuring/advisory,
underwriting and placement services for privately placed and listed sukuks. Moreover,
Meezan banks’ specialist team offers a wide range of equity and advisory products including
innovative shariah-compliant solutions for:

• Mergers
• Acquisitions
• Buy-side / sell-side advisory
• Financial Restructuring
• Structured Equity
• Initial Public Offerings
• Private Placement of Equity
• Venture Capital Investments

Shareholders:

• Noor Financial Investment Company (35.25 percent)

• Pak Kuwait Investment Company (30.00 percent)
• Islamic Development Bank (9.32 percent)

Industry Analysis (Competitors, Market Capitalization, etc.)\

Meezan Bank Limited is a Pakistani commercial bank that provides Shariah-compliant banking
services. Here is an industry analysis of Meezan Bank:
Competitors:
• Habib Bank Limited
• United Bank Limited
• National Bank of Pakistan
• Allied Bank Limited
• Askari Bank Limited
Market Capitalization:
As of September 2021, Meezan Bank's market capitalization was approximately PKR 198 billion
(USD 1.2 billion).
Current Standing in the Industry:
Meezan Bank is the largest Islamic bank in Pakistan, with a market share of around 35% in terms
of deposits and assets. According to the State Bank of Pakistan, Meezan Bank's total assets stood
at PKR 1.7 trillion (USD 10.5 billion) as of June 2021. The bank has a strong presence in the retail
and corporate banking segments and has been consistently growing its profitability over the years.
Meezan Bank was also named the "Best Islamic Bank in Pakistan" by Global Finance in 2021.
Meezan Bank operates in a highly competitive banking industry in Pakistan. The industry is
dominated by a few large commercial banks, including Habib Bank Limited, United Bank Limited,
and National Bank of Pakistan, among others. These banks offer a wide range of banking products
and services, including conventional and Islamic banking, to cater to the needs of various segments
of customers.
Despite the intense competition, Meezan Bank has managed to establish itself as a leader in the
Islamic banking sector in Pakistan. The bank's commitment to Shariah-compliant banking,
combined with its innovative products and services, has helped it gain a strong foothold in the
market. Meezan Bank offers a wide range of Islamic banking products and services, including
deposit accounts, financing solutions, investment products, and trade services.
Meezan Bank's market capitalization has been steadily increasing over the years, reflecting
investors' confidence in the bank's growth prospects. The bank has also been expanding its network
of branches and ATMs across Pakistan, enabling it to reach out to a larger customer base. As of
June 2021, Meezan Bank had a network of 840 branches and over 3,000 ATMs across the country.
Meezan Bank's strong financial performance has been recognized by various industry experts and
rating agencies. The bank has won numerous awards for its performance and innovation in the
Islamic banking industry. Meezan Bank's commitment to providing quality services to its
customers and maintaining a high level of transparency and ethics has helped it establish a strong
reputation in the market. Overall, Meezan Bank is well-positioned to continue its growth trajectory
in the highly competitive banking industry in Pakistan.

Ts Growth Prospects
Regarding Meezan Bank's investment policies, the bank focuses on providing Shariah-compliant
investment solutions to its customers. The bank invests in a range of sectors, including energy,
technology, textiles, and consumer goods. Meezan Bank's investment portfolio is diversified, with
investments in both long-term and short-term assets. The bank's investment strategy is guided by
its Shariah Supervisory Board, which ensures that all investments comply with Islamic principles.
In terms of investment policies, Meezan Bank's net spread has increased by 46% to Rs45.48 billion
in the first six months of 2022, indicating a profitable business model. However, the bank's
operating expenses have also increased by 25% to Rs20.74 billion, which may be a cause for
concern. Meezan Bank has shown strong financial performance in the first half of 2022, with a
33% increase in profit-after-tax compared to the same period in the previous year. The bank also
reported an increase in earnings per share, from Rs7.83 to Rs10.48.
The country's GDP growth is forecasted to be around 4% in 2022, according to the World Bank.
This growth is expected to be driven by an increase in investment and private consumption. In the
banking industry specifically, the State Bank of Pakistan has maintained an accommodative
monetary policy stance to support economic growth. This may present opportunities for Meezan
Bank to expand its lending portfolio and increase profitability.
In terms of industry-specific numbers, the banking industry in Pakistan is expected to continue to
grow in the coming years, driven by a combination of favorable government policies and a growing
middle class. The State Bank of Pakistan has set an ambitious target of increasing the share of
Islamic banking in the overall banking industry to 30% by 2025, which could provide a significant
growth opportunity for Meezan Bank Pakistan.
Overall, Meezan Bank Pakistan's outlook appears to be positive, given its focus on Shariah-
compliant banking and its investment in technology and digital platforms. However, the bank will
need to navigate the ongoing economic challenges facing Pakistan and the banking industry as a
whole.

Preliminary Investment Decision

Meezan Bank's profit and earnings per share have increased, indicating strong financial
performance. The bank's net spread has also increased, which is a positive sign for its
profitability. The forecasted GDP growth and accommodative monetary policy may present
opportunities for Meezan Bank to expand and increase profitability. So based on this primary
information, we would buy its stock, but we will conduct a thorough analysis of the bank's
financial statements, market trends, and macroeconomic factors to finalize our primary decision.

References:
• Meezan bank official website https://www.meezanbank.com/
• World Bank. (2022). Pakistan Economic Update, Spring 2022: Recovering from COVID-
19. Retrieved from https://openknowledge.worldbank.org/handle/10986/37289
• State Bank of Pakistan. (2022). Monetary Policy Statements. Retrieved from
https://www.sbp.org.pk/monetary_policy/statements/index2.asp

• https://www.meezanbank.com/investment-banking