Meezan Bank reports higher quarterly earnings on deposit growth and improved spreads, while announcing a cash dividend of Rs8 per share.

KARACHI: Meezan Bank Limited (MEBL) has reported unconsolidated profit after tax (PAT) of Rs25.6 billion for the third quarter of calendar year 2026 (3QCY26), up from Rs21 billion in the same period last year.

Earnings per share (EPS) increased to Rs14.2 from Rs11.7 in the corresponding period of the previous year. Analysts at Insight Research Limited said the results were broadly in line with their expectations.

Profit increased by 27% year on year and 11% quarter on quarter, supported by deposit growth of 24% and 5%, respectively. Net spreads also improved by approximately 10% year on year and 2% quarter on quarter, reflecting a favourable deposit mix.

Other income rose by 3% year on year, primarily driven by a roughly 4% increase in fee income. However, fee income declined by around 6% compared with the preceding quarter.

Operating expenses reached Rs25.8 billion in 3QCY26, increasing by approximately 23% quarter on quarter, potentially reflecting higher branch-related costs.

The bank’s cost-to-income ratio stood at around 35%, compared with 37% in the same period last year and 28% in the preceding quarter. The effective tax rate for the quarter was approximately 53%.

Alongside the results, Meezan Bank announced a cash dividend of Rs8 per share, taking its cumulative dividend per share for the first nine months of calendar year 2026 to Rs23.5.

The results highlight continued earnings growth supported by deposit expansion and improved spreads, despite higher quarterly operating expenses and a substantial tax burden.