Meezan Bank (MEBL) Q1 2026 earnings summary

Executive summary

• Profit after tax rose 6% year-over-year in Q1'26 to Rs 23.4 billion, with basic EPS at Rs 13.00 per share and ROE at 34.0%.

• Interim cash dividend of Rs 7.50 per share (75%) was approved for the quarter.

• Total assets stood at Rs 4.79 trillion, flat versus December 2025, while deposits grew 10% to Rs 3.62 trillion.

• The bank expanded its branch network to 1,115 branches across 365 cities.

• Maintained robust capital adequacy ratio (CAR) above 19% and market capitalization at USD 2.92 billion.

Financial highlights

• Operating income increased 4% year-over-year to Rs 72.6 billion, with net spread earned at Rs 61.4 billion, down 1% year-over-year.

• Fee and commission income surged 26%–36% year-over-year, led by debit card, investment banking, and trade activities.

• Operating expenses increased 18% year-over-year, resulting in a cost-to-income ratio of 31.9%–32%.

• CASA deposits grew 25% year-over-year, maintaining a high CASA mix of 93%.

• Investments increased 3% from December 2025, with Rs 2.68 trillion in total investments.

Outlook and guidance

• Focus remains on expanding branch network and digital channels, with 4.84 million debit cards and 3.63 million active mobile app users.

• Maintains a strong capital position with a CAR of 19.54%, well above regulatory requirements.

• Strategy aligned with government vision for Islamic finance and sectoral diversification.

• Geopolitical tensions in the Middle East pose risks, but strong capital base and risk management support resilience.