Meezan Bank (MEBL) Q3 2025 earnings summary

Executive summary

• Profit after tax for 9M'25 was Rs 67.2 billion, a 13% decline year-over-year due to lower policy rates, implementation of minimum deposit rates on Islamic banks, and higher taxes.

• Basic EPS for 9M'25 was Rs 37.42, down from Rs 43.00 year-over-year; ROE at 34.6% and ROA at 2.2%.

• Total assets grew 25% year-over-year to Rs 4.24 trillion, led by a 34% increase in investments.

• Deposits rose 23% to Rs 3.18 trillion, with CASA deposits up 28% year-over-year and a CASA mix of 94%.

• Interim cash dividend of Rs 7.00 per share for Q3, totaling Rs 21.00 per share for the nine months.

Financial highlights

• Net spread earned declined 12% year-over-year to Rs 188.2 billion.

• Fee, commission, and other income increased 42% to Rs 25.8 billion.

• Operating expenses decreased 6% year-over-year to Rs 62.7 billion.

• Gross financings dropped 25% from Dec-24 to Rs 1.17 trillion; investments rose 34% to Rs 2.51 trillion.

• NPL/NPF ratio increased to 2.63% from 1.62% in Dec-24; NPL coverage ratio at 146%.

Outlook and guidance

• Focus on supporting economic growth and financial stability through Islamic banking leadership.

• Strategic emphasis on core deposit growth, digital transformation, and compliance with Shariah directives.

• Return on equity for 9M'25 was 34.6%, down from 49.4% in Dec-24.

• Capital adequacy ratio improved to 23.36% from 20.35% in Dec-24.

• Challenges include lower policy rates, minimum deposit rate implementation, and high tax environment.