SUBMITTED TO
P R O F. F A R E E D Y
1 Company Profile:
Meezan Bank Limited, a publically recorded organization, is the first and biggest Islamic Bank
in Pakistan and one of the quickest developing banks in the historical backdrop of the keeping
money segment of the Country. It initiated operations in 2002 when State Bank of Pakistan
issued first-ever permit for Islamic business managing an account. The Bank offers extensive
variety of Shariah-consistent saving money items and administrations to its clients, both retail
and business. Other than conventional managing an account channels, the Bank offers different
Alternate Distribution Channels including Internet Banking, ATM Banking, Visa & MasterCard
platinum card, SMS Banking, SMS Alerts, Mobile Banking Application and Utility Bills
Payment through ATM and Internet Banking.
Having the biggest branch system and item run, Meezan Bank bears the discriminating
obligation of driving the path forward in setting up a steady and element Islamic managing an
account framework packed with dynamic and bleeding edge items and administrations. Meezan
Bank plans to satisfy its prime goal of giving clients availability and comfort, inside of an
environment and society of die hard loyalty and acknowledgment of their needs.
Meezan Bank has added to a phenomenal innovative work ability by joining venture investors,
business brokers, Shariah researchers and lawful specialists to create inventive, suitable, and
aggressive worth suggestions that not just meet the prerequisites of today's mind boggling money
related world, yet do as such with world-class administration greatness which our clients request;
all inside of the limits of Shariah.
Vision:
Establish Islamic banking as banking of first choice to facilitate implementation of an
equitable economic system, providing a strong foundation for establishing a fair and just
society for mankind.
Mission Statement:
To be a premier Islamic bank offering a one-stop shop for innovative value-added product
and services to our customers within the bounds of Shariah, while optimizing the stake
holders value through an organizational culture based on learning, fairness, respect for
individual enterprises and performances .
Corporate Values:
Core Values:
Shariah Compliance, Integrity, Professionalism, Service Excellence, Social Responsibility.
Brand Personality:
A sober and established, strong, empathic, professional person; who is an extremely loyal and
dependable friend and business partner, and is committed to offering comprehensive value-based
Shariah compliant financial solutions .
Staff:
Committed, motivated and professionally trained employees who are empathic to their
customers needs.
Relationships: Are long term with Meezan Bank. We recognize and our customers needs and
strive to ensure their fulfillment. All customers are treated professionally and in a friendly
manner.
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2 ORGANIZATION CHART
3 REVIEW:
Meezan Bank began its business operations in sept in 1997 and got its planned business
status in May 2002 Meezan Bank's Limited .The Bank soundness, which is ordinarily
measured by reference to the Tier 1 capital Adequacy Ratio, is above 80%. The universally
worthy standard, which is likewise the base necessity of the state Bank of Pakistan, is 8%.
MBL capital ampleness proportion put the bank at the highest point of the business.
Meezan Bank Limited is the first timetable Islamic bank in Pakistan, which has been
authorized by the state Bank of Pakistan to work as an Islamic Commercial bank .The bank
privateers entirely under the standards of Islamic Shariah. Our in trustworthy Shariah
Supervisory board, including globally prestigious Islamic researchers, frequently surveys the
bank's exercises.
1. Justice (Retd) Muhammad Taqi Usmani (Pakistan) Chairman
2. Dr. Abdul Sattar Ghuddah (Suadia Arabia)
3. Shikh Essam M. Ishaq (Bahraim)
4. Dr. Muhammad Imran Usmani (Pakistan)
Statement of Financial Position
Rupees in '000
Dec. 31
Dec. 31
Deposits and other accounts
Islamic financing and related assets - net
Investments and Due from financial institutions
Total Assets
Share Capital
Shareholders' Equity
2014
2013Growth
380,421,569 289,810,519 31%
175,711,942 127,622,868 38%
204,855,549 159,056,665 29%
437,405,958 329,724,631 33%
10,027,379 10,027,379 0%
23,262,157 17,908,150 30%
Profit and Loss Account
Rupees in '000
Dec. 31 2014 Dec. 31 2013 Growth
Net Spreads Earned before provisions
13,362,809
10,644,849 26%
Fee, Commission, Forex and Other Income
4,754,884
3,501,450 36%
Core banking Income before provisions
18,117,693
14,146,299 28%
Provision against non-performing
financings and others
Administrative & Other expenses / charges
Profit Before Taxation
Taxation
Profit after Tax
Earning per Share - Rupees
Number of Branches
466,504
10,752,655
6,898,534
2,328,448
4,570,086
4.56
428
93,382
8,406,253
5,646,664
1,689,888
3,956,776
3.95
351
400%
28%
22%
38%
16%
16%
22%
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4 PRODUCTS AND SERVICES
Deposit Accounts:
Meezan Bank offers the largest range of Riba-free Deposit Accounts for Personal Banking
Local Currency Accounts:
Rupee Current Account - A Convenient, Secure and Stable Deposit Account
Rupee Savings Account - Ensuring Truly Halal Savings with Comprehensive Returns
Meezan Bachat Account - The convenience of a Saving Account with Halal Profit
Labbaik Saving Aasaan - A specialized Saving Account designed to save for Umrah &
Hajj
Business Plus Account - Serving you the perfect blend of convenience and flexibility
Meezan Kids Club Account - Specialized saving account for kids under the age of 12
years
Meezan Teens Account - Mudarabah based saving account specifically for teens
Meezan Asaan Current Account - A Convenient, Secure and Stable Deposit Account
Meezan Asaan Savings Account - Ensuring Truly Halal Savings with Comprehensive
Returns
Foreign Currency Accounts:
Dollar Current Account - A Truly Halal Dollar Current Account
Dollar Saving Account - A Truly Halal Dollar Saving Account
Euro Current Account - A Truly Halal Euro Current Account
Euro Saving Account - A Truly Halal Euro Saving Account
Pound Current Account - A Truly Halal Pound Current Account
Pound Saving Account - A Truly Halal Pound Saving Account
Term Deposits:
Meezan Bank provides a complete range of short term and long term deposit certificates with the
flexibility of monthly, quarterly, semi-annual and annual returns:
Certificate of Islamic Investment - Offering a range of investment tenures from 3months
to 5 years
Meezan Amdan Certificate - A long-term investment with a monthly high expected return
Monthly Mudarabah Certificate - A short-term investment certificate designed to provide
regular monthly returns
Dollar Mudarabah Certificate - An investment certificate to invest US Dollars and earn
semi-annual or profit at maturity
Consumer Finanncing:
Meezan bank consumer financing, provides Shariah Compliant financing solutions for
individuals
Car Ijarah - Car financing based on the principles of Ijarah
Easy Home - A comprehensive, affordable, and totally hassle-free house financing
facility
Laptop Ease - Monthly installment as low as Rs.2,300/-
Meezan Roshni - Shariah-compliant Generator Finance facility.
Services
Meezan Bank is dedicated in its effort to provide a quality banking experience to our customers
via a range of unique Banking Services
Labbaik Travel Aasaan - A specialized service to assist you in making arrangements
for Umrah & Hajj
Online Banking - Conduct banking transactions from any of Meezan bank's branches
nationwide
Ladies Banking - An exclusive banking area to provide a comfortable enviornment to
female customers
Home Remittance - Remittance services via a wide network of corresponding banks
worldwide.
Western Union Money Transfer - Convenient money remittance within minutes to
Pakistan.
Electronic Banking
Electronic Banking provides non-stop banking convenience, twenty four hours a day, seven days
a week.
Visa Debit Card - Access your money anytime - anywhere!
Meezan Titanium Master Card Debit Card - More than just an ATM card, you can use
your Meezan Titanium MasterCard Debit Card wherever MasterCard is accepted.
Internet Banking - Global access to your account 24 hours a day, 7 days a week
Meezan Mobile Banking App - relies on high-security mechanisms to protect customers
privacy and financial information from login to logout.
ATM Network - A wide network of ATMs located at branches and at prominent offsite
locations
Meezan QuickPay - No more waiting in queues to pay bills !
SMS Alerts - Receive alerts on your account transactions
24/7 Call Center - Access a wide range of Tele-banking and personalized banking
services
InterBank Funds Transfer - A fast secure and convenient service which allows you to
transfer funds to any IBFT member bank account.
Meezan SMS Banking - An interactive service that allows you to access your account on
demand anytime, anywhere from your mobile phone
Meezan WebPay - Online shopping facility through all Meezan debit cards.
Asser Management:
Al Meezan Investment Management Limited- A subsidiary of Meezan Bank
Limited
Al Meezan Investment Management Limited (Al Meezan) is the subsidiary of
Meezan Bank Limited. Core area of Al Meezans business is investment
management with proven expertise in:
Developing, floating and managing Islamic (Shariah compliant) Mutual
Funds
Structuring and managing Discretionary and Non-Discretionary Portfolios
Providing Investment Advisory Services
Al Meezan is the biggest store chief in private area in Pakistan and the Only Shariah consistent
Asset Management Company in Pakistan. Al Meezan has effectively finished 20 years of its
presence in 2015. This is one of the longest track records in private division in the territory of
speculation administration in Pakistan and has risen as one of Pakistan's driving venture
arrangements supplier in a Shariah consistent way. Al Meezan has recorded remarkable
development in the course of the most recent five years with its Assets under administration
(AUMs) developing from PKR 17.8 billion in January 2010 to about PKR 66.4 billion on June
30, 2015 mirroring a noteworthy 273% development in AUMs in the most recent five years.
Al Meezan additionally gloats to have the biggest entrance among retail financial specialists in
the nation with aggregate speculator base of more than 33,000 financial specialists. Not just that,
it is maybe one of only a handful couple of organizations in the nation which has assisted
financial specialists with accomplishing their venture goals in a really Shariah Compliant way.
The venture arrangements offer a scope of choices, including differentiated value plans, month to
month wage supports, an extensive variety of pay and currency market items, capital
conservation store arrangement and willful benefits plan. Al Meezan is likewise the director of
Pakistan's Largest Equity Fund - Meezan Islamic Fund and the Largest Pension Fund - Meezan
Tahaffuz Pension Fund in Private area, at present with resources under administration of Rs 27
Billion and about Rs. 4.5 Billion as on June 30, 2015 respectively.
5 SWOT
Strengths
S1 Brand Image : Perception
S2 Skilled Higher Management
S3 Strong Shariah Board
S4 Variety Of Products / Servies
S5 Free Online Banking
Internal Factor Analysis
Weighted
Weights Rating
Comments
Score
Pioneers in Islamic Banking. Have The title of
being the Largest and the strongest Islamic
0.15
4
0.6 bank in Pakistan. WELL POSITIONED
MBLs CEO is the highest paid CEO in the
Pakistani Banking Market. The Upper tier
management is a set of highly skilled
professional with exceptional Directional
0.
Strategies. GOOD MANAGEMEN
0.05
3
15
T
Hazrat Mufti Taqi Usmani is the head of
MBLs Shariah. A Renowned Islamic scholar
of the world. MOST PROMINENT
SHARIAH BOARD BUT OTHER BANKS
0.1
5
0.5 HAVE THIS ASWELL
Constantly providing new products in the
market in the light of Shariah. With a rapidly
growing branch network of almost 500
branches. LOW VARIAETY NEED TO
0.15
2
0.3 IMPROVE
The Free online banking offered by MBL is a
0.05
3
0.15 USP and attracts many users. USP
Weakness
W1 Restricted Marketing and
advertising Area
0.1
0.3
0.05
0.15
0.1
0.3
0.15
0.3
W2 Growth in size with lack of
adequate trained staff
W3 Lack of ongoing Training
W4 Majority population unable
to understand the real
Difference between Islamic and
Conventional Banks
Limited scope of advertisement as MBL
Shariah board restricts using Female Models
and hence the bank can only use specific
means of advertisement. MUST DEVELOP
PERSUASSIVE ADVERTISMENT
Presenting the customer with top class Islamic
banking requires experienced personal who
can deliver the proper image of the bank of
the customer. TRAINED STAFF BEING
HIRED
The HR at MBL is providing limited training
to the staff. LACK OF PROPER TRAINING
There is a big question mark inside the
consumer mind regarding Islamic Banking.
The bank not taking necessary steps to deal
with that. NO STEPS BEING TAKEN TO
ADDRESS THE ISSUE
W5 Restriction in conduction
business to Shariah constraints
in the interest based Economy
Total Scores
Opportunity
O1 Growing Awareness of
Islamic Banking Amongst Public
O2 Favorable Business
Environment
O3 Growing acceptance of a
Consumer Credit Culture
0.1
1
As the bank earns from lending and the
Pakistani market is used to interest based
lending on the other hand Islamic contracts
provide restricted facilities. SHARIAH
0.5 BOUND FINANCING
3.25
External Factor Analysis
Weighted
Weights Rating Score
Comments
Mass market is beginning to understand the
concepts of Islamic Banking and choosing it
0.1
5
0.5 over it conventional counterpart. FROM POS
Banking is becoming everybodys need and
each and every individual is now a bank
0.1
3
0.3 account holder. GRWOING NEEDS
0.05
0.15
0.1
O4 Product Innovation can
increase Market Share
O5 Global Acceptance of Islamic
Banking
Businesses are in a never ending need for
credit therefore it presents a huge opportunity
0.15 to be tapped. FINANCING NEED
New products need to be developed to tap the
market which is in favor of Islamic Financial
Products like leasing, financing and
investment. NEW PRODUCTS NEED TO BE
0.45 INTRODUCED
Islamic Banking is a rising star with Global
acceptance especially after the credit crunch
that was caused by conventional bankers.
0.3 GLOBALIZATION
Threats
T1 Growing Competition
0.2
0.8
0.1
0.3
0.05
0.1
0.1
0.3
0.05
1
0.15
3.35
T2 Employee Attrition
T3 Interest Transactions /
Haram Profit
T4 New transactions Tax
Imposed by Government
T5 Falling Discount Rates
Total Scores
With almost 28 banks operational in the
Pakistani Market the competition is intense.
Strict measures must be adopted to deal with
the Rivalry amongst competitors. GOOD
RESPONSE TO COMPETITION
Employees switch between banks in search of
better incentives taking valuable business
with them. NEW EMPLOYEES BEING
HIRED
Some Ambiguity in financing causes all the
profit from that transaction to go to charity as
it is classified as Haram. STRICT AUDITS
IN PLACE TO MONITOR
IMF has imposed new taxes that are scaring
off the customer. UNIFORM FOR ALL
MARKET
SBP has slashed Discount rates. UNIFORM
FOR ALL BANKS
STRATEGIC FACTORS ANALYSIS
Duration
Weights
S1 Brand Image : Perception
Rating
Weighted
Score
SHORT
MEDIUM
Comments
LONG
0.1
0.4
0.1
0.3
0.15
0.75
0.1
0.2
0.1
0.2
0.15
0.75
0.1
0.2
0.1
0.3
S4 Variety Of Products /
Services
X
W1 Restricted Marketing
and advertising Area
W4 Majority population
unable to understand the real
Difference between Islamic
and Conventional Banks
O1 Growing Awareness of
Islamic Banking Amongst
Public
O2 Favorable Business
Environment
GRWOING
NEEDS
NEW
PRODUCTS
NEED TO BE
INTRODUCED
GOOD
RESPONSE TO
COMPETITION
O4 Product Innovation can
increase Market Share
T1 Growing Competition
X
T2 Employee Attrition
Total
0.1
1
0.2
3.3
WELL
POSITIONED
LOW
VARIAETY
NEED TO
IMPROVE
MUST
DEVELOP
PERSUASSIVE
ADVERTISME
NT
NO STEPS
BEING TAKEN
TO ADDRESS
THE ISSUE
FROM POS
X
NEW
EMPLOYEES
BEING HIRED
6 TOWS Matrix for Formulation of Alternative Strategies
TOWS matrix has been used to generate alternates strategies
SO-Strategies
S1, O1 Expand Branch Network and make
branches available on easy access locations.
S1, O2 Enhance sales force to penetrate the
market and conduct rapid sales.
S1, O4 Conduct research to determine new
products that could be marketed and market
them.
S4, O1+O2+O3 Conduct competitors product
analysis and try to fill loop holes.
WO-Strategies
W1, O1 Use creative and persuasive
advertisements to build brand image and
educate masses about Islamic Banking.
W1,O2 Use corporate communications to
attract business for funding in the light of
Shariah.
W1, O3 Use religions to enhance
marketability provide customized Shariah
Compliant financing.
W4, O1 Train staff to impress upon major
difference between Islamic and conventional
banking
W4, O3 Use print adds to explain to target
market how all their banking needs can be
fulfilled in Shariah compliant ways.
ST-Strategies
WT-Strategies
S1, T2 Use ingenious advertisement to position
our self as a Shariah Compliant brand, hammer
that USP
W1, T1 Make good use of corporate
communication to distinguish Meezan bank
from competition.
S4, T1 Offer Shariah compliant alternative
products, religious aspect will attract the mass
market.
7 BCG MATRIX
LAPTO
PS
KAFALAH
INSURANCE
DEPOSI
GENERATOR
LEASING
TD
8 CHALLENGES FACED BY THE BANKING SECTOR:
9 REVISED VISSION AND MISSION STATEMENT
Vision:
Establish Islamic banking as banking of first choice to facilitate implementation of an
equitable economic system, providing a strong foundation for establishing a fair and just
society for mankind. Educating masses about the difference between interest based and
interest free banking.
Mission statement:
To be a premier Islamic bank offering a one-stop shop for innovative value-added product
and services to our customers within the bounds of Shariah, while optimizing the stake
holders value through an organizational culture based on learning, fairness, respect for
individual enterprises and performances . Using state of the art technology to provide better
system management. Building brand image as the Banks that works in the true spirit of
Islam. Providing high level training to staff to incorporate high level of customer service to
differentiate our self from competition.
