Meezan Bank Ltd (PSX:MEBL) has announced plans for a significant branch expansion as part of its strategy to strengthen its deposit base and extend its reach across Pakistan. According to the bank’s management, the branch network is expected to surpass 1,100 outlets by the end of 2025, with an additional 100–150 new branches planned in 2026 and a further 8–10% growth projected in 2027.
The expansion is a key component of Meezan Bank’s target to achieve 20–30% annual deposit growth, leveraging both physical branches and digital banking channels. This dual approach, highlighted in the bank’s recent corporate briefing session, reflects the institution’s effort to maintain strong liquidity while adapting to a digitally-driven financial ecosystem.
Deposits at Meezan Bank rose 23% year-on-year to Rs 3.18 trillion, driven largely by a 27% increase in current accounts. This growth helped the bank maintain a robust CASA (Current Account, Savings Account) ratio of 94%, comprising 49% current and 45% savings accounts, underscoring the bank’s strong retail and corporate deposit base.
Management emphasized that branch expansion is being complemented by a strong push in digital banking. The digital shift, it noted, enhances operational efficiency and offsets margin pressures resulting from the minimum deposit rate (MDR). The bank also reaffirmed its quarterly cash dividend of Rs 7 per share, targeting a 50% payout ratio in alignment with its growth strategy and capital management objectives.
Meezan Bank’s Capital Adequacy Ratio (CAR) stands at a healthy 23.3%, well above regulatory requirements. The bank intends to maintain a capital buffer in the 15–16% range preferred by rating agencies, despite retiring its Tier-II capital. This provides ample room to fund the branch expansion while sustaining dividend payouts.
The bank’s target for Advances-to-Deposit Ratio (ADR) is approximately 45%, contingent on economic growth and corporate lending opportunities. Meezan also reported growth in trade finance and remittances, maintaining a 10% market share in trade finance while doubling its share in remittances. Notably, 20% of home remittances are deposited into Meezan Bank accounts, and a repricing of around 20–30 basis points is expected in the fourth quarter.
Meezan Bank posted a profit after tax of Rs 22 billion (EPS: Rs 12) for the third quarter of 2025, reflecting a 13% decline compared to the same period last year. Nine-month earnings reached Rs 70.52 billion, down 10% year-on-year. The bank declared a cash dividend of Rs 7 per share, taking total payouts for the nine-month period to Rs 21 per share. Its stock is currently trading at Rs 421.7, down 1.1% as of 10:20 am PST, according to Mettis Global data.
Management highlighted two major challenges moving forward: sustaining growth in a fluctuating economy to support its financing book and ensuring that digital channels continue to attract and retain customers effectively.
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