Meezan Bank’s regulatory penalties decline from Rs59.19 million in the same period last year, while the Islamic lender reports a 10.9% increase in nine-month profit to Rs74.5 billion.
KARACHI, October 28, 2026: The State Bank of Pakistan (SBP) imposed monetary penalties of Rs15.70 million on Meezan Bank during the first nine months of calendar year 2026 for regulatory violations, according to the bank’s financial results released on Wednesday.
The penalty was significantly lower than the Rs59.19 million imposed during the corresponding period of 2025.
READ MORE: Meezan Bank profit rises 27% to Rs25.6 billion in Q3
Despite the regulatory penalties, Meezan Bank reported strong financial performance for the nine months ended September 30, 2026, with profit after tax rising 10.9% to Rs74.5 billion from Rs67.2 billion a year earlier.
Basic earnings per share increased to Rs41.35 from Rs37.42, while return on equity stood at 34.5% and return on assets reached 1.95%.
The bank’s board also approved an interim cash dividend of Rs8 per share for the third quarter, taking the total dividend for the nine-month period to Rs23.50 per share.
Meezan Bank’s market capitalisation reached Rs1 trillion at the end of September 2026, reflecting continued investor confidence.
Revenue and deposits grow
Returns from financing, investments and placements increased 13% to Rs352.9 billion. Returns paid on deposits and other dues rose 25% to Rs155.3 billion, while net spread increased 5% to Rs197.7 billion.
Fee, commission and other income climbed 31% to Rs31.3 billion. Foreign exchange income surged 73% to Rs7 billion, supported by higher trade volumes and home remittance flows.
Operating expenses increased to Rs72.3 billion from Rs60.8 billion, reflecting the opening of 112 branches, higher staffing and information technology costs, and inflation. Nevertheless, the cost-to-income ratio remained at 32%.
Total assets expanded 12% from December 2025 to Rs5.4 trillion. The investment portfolio grew 17% to Rs3.03 trillion, while gross financing declined 2% to Rs1.65 trillion.
Strong deposit base and asset quality
Deposits increased 19% to Rs3.94 trillion. Current and savings accounts accounted for 89% of the total deposit portfolio, with current account deposits reaching Rs1.89 trillion and savings deposits rising 14% to Rs1.62 trillion.
The bank reported a non-performing financing ratio of 1.9% and a coverage ratio of 140%, indicating continued provisioning against troubled financing.
The lower penalty total compared with 2025 coincided with higher profits and growth in deposits, investments and fee income during the reporting period.
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