KARACHI, February 9, 2026 — Meezan Bank Limited (MEBL) announced its annual financial results for the calendar year 2025, reporting a 12% decline in after-tax profit compared to the previous year. The bank posted an after-tax profit of Rs89 billion for CY25, down from Rs101.51 billion in CY24, according to figures shared with the Pakistan Stock Exchange (PSX).
Quarterly Performance Highlights
In its 4Q2025 results, Meezan Bank recorded unconsolidated earnings of Rs21.8 billion with an EPS of Rs12.1, reflecting a 10% year-on-year decline, though up 4% quarter-on-quarter, in line with analyst expectations. The bank also declared a final cash dividend of Rs7.0 per share, bringing the total dividend for 2025 to Rs28.0 per share.
Key financial insights for 4Q2025 include:
• Net spread earned fell 11% YoY but rose 3% QoQ to Rs64 billion, attributed to volumetric growth.
• Expenses increased 35% YoY but decreased 9% QoQ to Rs26.1 billion. The cost-to-income ratio stood at 34% in 4Q2025, down from 37% in 3Q2025, aided by a reversal of variable compensation expenses of around Rs11 billion in 1H2025.
• Provision expenses were minimal at Rs0.3 billion, compared to Rs7.3 billion in 4Q2024.
• Other income decreased by 36% YoY and 27% QoQ to Rs6.9 billion, due to absence of gains on securities and FX losses of Rs0.5 billion in the quarter.
• The effective tax rate remained stable at 53.4%, compared to 58.0% in 4Q2024.
Balance Sheet Overview
On the balance sheet side, deposits grew by 4% QoQ to Rs3.3 trillion, while investments increased 3% QoQ to Rs2.6 trillion. However, advances fell sharply by 45% QoQ to Rs1.64 trillion in 4Q2025.
Market Commentary
According to Topline Securities Limited, Meezan Bank continues to be a preferred pick in the banking sector, trading at a 2026E P/E of 9.8x and PBV of 2.7x, with a dividend yield of 6%. Analysts highlighted that despite the decline in profits, the bank’s strong balance sheet, consistent dividend policy, and conservative provisioning practices continue to support investor confidence.
Market observers noted that the results were largely in line with expectations, with QoQ improvements in spreads and deposits offsetting YoY declines in profitability.
Meezan Bank remains a key player in Pakistan’s Islamic banking sector, maintaining a stable growth trajectory while navigating macroeconomic challenges and sectoral pressures.