Karachi, April 21, 2025 – Meezan Bank Limited has reported an 11% drop in its profit after tax for the first quarter of the calendar year 2025, compared to the same period in 2024.
According to the consolidated financial results submitted to the Pakistan Stock Exchange (PSX), Meezan Bank’s profit for the quarter ending March 31, 2025, stood at Rs22.42 billion, down from Rs25.08 billion in the corresponding quarter of the previous year.
Analysts at Arif Habib Limited reviewed the results and reported that Meezan Bank posted a profit after tax of Rs22 billion, translating to earnings per share (EPS) of Rs12.3 for 1QCY25. This marks an 11% year-on-year (YoY) decline and a similar 11% decrease compared to the previous quarter, where the bank had reported EPS of Rs13.9 in 4QCY23. The decline in profitability was attributed to a YoY drop in net interest income (NII) and higher operating expenses (OPEX).
In addition to the financial results, Meezan Bank declared a cash dividend of Rs7 per share. The bank’s net profit earned for the first quarter of CY25 was reported at Rs61.8 billion, reflecting an 8% YoY decline, with a 15% drop compared to the previous quarter.
Meezan Bank also witnessed an increase in its Non-Funded Income by 33% YoY, largely driven by a 21.9% rise in fee income and a 22% increase in foreign exchange (FX) income. However, on a quarter-on-quarter (QoQ) basis, Non-Funded Income experienced a decline due to a 4% drop in fee income and a significant 99.7% decrease in gain on securities.
The bank’s provisioning charge amounted to Rs1.8 billion for the first quarter of 2025, compared to Rs263 million in the same period last year and Rs6.7 billion in the preceding quarter. Despite these challenges, Meezan Bank’s operating expenses showed a slight 7% YoY decrease but rose by 8% QoQ to Rs20.2 billion. The bank’s cost-to-income ratio stood at 28.5%, down from 29.5% during the same period last year.
The bank also reported an effective tax rate of 54.5%, which is higher than the 52.2% recorded in the previous year. Despite the decline in profits, Meezan Bank remains committed to maintaining its financial stability and delivering value to its shareholders.