Meezan Bank Limited operates as a Scheduled Islamic Commercial Bank in Pakistan. The company engages in corporate, commercial, consumer, investment, and retail banking activities. The bank provides Islamic financing and related assets through various Islamic financial instruments, including Murabaha, Istisna, Tijarah, Ijarah, Diminishing Musharakah, Running Musharakah, Bai Muajjal, Musawammah, Service Ijarah, Wakalah, and Wakalah Tul Istithmar. The company's deposits include saving accounts, ter...
Meezan Bank Limited operates as a Scheduled Islamic Commercial Bank in Pakistan. The company engages in corporate, commercial, consumer, investment, and retail banking activities. The bank provides Islamic financing and related assets through various Islamic financial instruments, including Murabaha, Istisna, Tijarah, Ijarah, Diminishing Musharakah, Running Musharakah, Bai Muajjal, Musawammah, Service Ijarah, Wakalah, and Wakalah Tul Istithmar. The company's deposits include saving accounts, term deposits, business accounts, and foreign currency accounts.
Business segments
The company operates through the Corporate and Commercial Banking, Retail Banking, and Trading and Sales segments.
Corporate and Commercial Banking
This segment includes a wide range of services tailored for corporate and commercial customers. The services encompass trade finance, export finance, project finance, Ijarah, guarantees, and bills of exchange. Additionally, the segment covers investment banking activities such as syndications, IPO-related activities (excluding investments), secondary private placements, underwriting, and securitization.
Retail Banking
This segment focuses on providing financial services to individual customers and small and medium enterprises (SMEs). Services offered include retail financing, deposits, and various banking services.
Trading and Sales
This segment deals with activities related to equity, foreign exchanges, commodities, own securities, and placements. The trading and sales segment is responsible for managing the bank's own investments and trading operations, ensuring optimal returns and risk management.
Investment Portfolio
The company holds investments in shares of various companies. Non-Government Sukuks, Shariah compliant bonds issued by non-government entities. They provide a fixed return based on the performance of the underlying assets. The bank also invests in foreign securities, ensuring diversification and exposure to international markets. Federal Government Securities include investments in securities issued by the federal government, which are considered low-risk and provide stable returns. The bank holds units in various mutual funds, including those managed by its subsidiary, Al Meezan Investment Management Limited.
Regulations
The company is subject to a range of government regulations that oversee its banking operations, financial practices, and corporate governance. The company is regulated by the State Bank of Pakistan. The SBP sets guidelines on capital adequacy, liquidity management, risk management, and other critical aspects of banking operations to ensure the stability and soundness of the financial system. The company is incorporated under the Companies Act, 2017, which governs the incorporation, regulation, and dissolution of companies in Pakistan. This act ensures that the bank operates within the legal framework established for corporate entities. Listed Companies (Code of Corporate Governance) Regulations, 2019 mandate the bank to maintain high standards of corporate governance, including the development of a Code of Conduct and Ethical Standards for the Board, Senior Management, and other employees. The company adheres to specific regulations for Islamic banking, which ensure that its financial products and services comply with Shariah principles. This includes the use of Shariah-compliant financial instruments and the prohibition of interest (Riba) in all transactions.
History
The company was founded in 1997. The company was incorporated in Pakistan in 1997. The company was formerly known as Al Meezan Investment Bank and changed its name to Meezan Bank Limited in 2002.