Meezan Bank Limited (MEBL), Pakistan’s largest Islamic bank, has reported an 11% decline in its consolidated profit after tax (PAT) for the third quarter ended September 30, 2025, reflecting the impact of lower net income and rising operating costs. The announcement was made through a financial statement submitted to the Pakistan Stock Exchange (PSX) on Friday.
The bank’s PAT stood at Rs23.38 billion for 3QCY25, compared to Rs26.21 billion in the same period last year, translating into earnings per share (EPS) of Rs12.65, down from Rs14.52 in 3QCY24. Despite the decline, Meezan Bank remains one of Pakistan’s most profitable and stable financial institutions, maintaining its leadership in the Islamic banking segment.
Meezan Bank’s Board of Directors also approved an interim cash dividend of Rs7 per share, or 70%, for the quarter and nine-month period ending September 30, 2025. This payout adds to the earlier interim dividend of Rs14 per share, or 140%, already distributed during the year, underscoring the bank’s commitment to delivering consistent shareholder returns despite a challenging financial environment.
The bank’s net return on Islamic financing, related assets, and investments dropped 19% to Rs62.47 billion compared to the same quarter last year. This decline was largely attributed to tightening profit spreads, changing market dynamics, and a more conservative approach to financing amid liquidity management considerations.
However, Meezan Bank recorded encouraging growth in non-funded income streams. Fee and commission income rose nearly 12% year-on-year, increasing to Rs7.8 billion from Rs6.99 billion, driven by higher transaction volumes, expanding digital banking activity, and improved trade and remittance flows. The bank’s foreign exchange income also saw a sharp surge, jumping from Rs29 million in 3QCY24 to Rs2.75 billion in 3QCY25. This reflects increased foreign currency transactions and a more favorable trading environment in the interbank market.
Total income, however, fell by 11%, reaching Rs73.8 billion from Rs83.05 billion in the corresponding quarter of the previous year. Rising operational expenditures weighed on profitability, with total operating expenses climbing 20% to Rs26.5 billion compared to Rs22.1 billion in 3QCY24. The cost increase is largely linked to branch expansion, technology investments, and higher inflationary pressures affecting administrative and personnel costs.
As a result, the bank’s profit before tax (PBT) declined 17% to Rs48.4 billion, down from Rs58.3 billion in the same quarter last year. Despite this decline, Meezan Bank’s pre-tax performance remains strong relative to industry peers, maintaining stability in earnings amid sector-wide headwinds. The bank paid Rs25 billion in taxes during the quarter, marking a 22% year-on-year reduction.
Meezan Bank’s consistent profitability and strong balance sheet continue to position it as a benchmark institution in Pakistan’s Islamic banking landscape. The bank’s management has reiterated its commitment to expanding Shariah-compliant financial services, promoting financial inclusion, and investing in technology to enhance customer experience and operational efficiency.
As Pakistan’s financial sector navigates economic headwinds, rising inflation, and liquidity challenges, Meezan Bank’s sustained focus on prudent financial management and growth in digital channels is expected to support long-term stability. The bank’s ongoing investments in technology and customer engagement platforms signal its strategy to adapt to evolving market conditions while maintaining its Shariah-compliant principles.
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