Meezan Bank Limited (PSX: MEBL) has taken a strategic step to enhance the operational capacity of its wholly owned subsidiary, Meezan Exchange Company (Private) Limited, by approving an increase in its authorized capital from Rs1 billion to Rs2 billion. The decision was made during the bank’s 113th board meeting on February 9, 2026, reflecting a clear focus on supporting the subsidiary’s growth and strengthening its non-banking business segment, particularly foreign exchange operations.
In conjunction with the capital enhancement, Meezan Bank announced it will inject an additional Rs500 million into Meezan Exchange Company, increasing its total investment in the subsidiary to Rs1.5 billion. This move aligns with the bank’s broader strategy to expand fee-based services and ensure smooth operational performance of its foreign exchange and remittance services, which have become a key growth area amid rising cross-border trade and remittance flows.
The capital enhancement announcement coincided with Meezan Bank’s disclosure of its financial results for the year ended December 31, 2025. The bank reported a profit after tax of Rs92.18 billion, showing a decline from Rs103.72 billion in the previous year. Earnings per share (EPS) decreased to Rs50.47 from Rs57.28 in CY24, reflecting modest pressure on core earnings despite robust gains in other income streams.
Total income for the year reached Rs290.65 billion, supported by a 19.9% increase in other income, which rose to Rs38.19 billion, largely due to foreign exchange gains that surged to Rs5.48 billion from Rs0.83 billion in the prior year. Fee and commission income strengthened by 15.1% to Rs29.75 billion, underscoring the growing contribution of non-markup revenue to the bank’s overall profitability. However, dividend income declined 39.4% to Rs0.38 billion, limiting its contribution to net earnings.
Profit before taxation stood at Rs200.30 billion, while operating expenses increased 4.6% year-on-year to Rs85.41 billion. Total other expenses also rose by 3.5% to Rs89.85 billion, reflecting the bank’s controlled cost management amid a challenging macroeconomic environment. The additional capital allocation to Meezan Exchange Company is intended to reinforce operational efficiency and support the subsidiary’s role in foreign exchange and remittance services, which are becoming increasingly critical in Pakistan’s evolving banking sector.
The move highlights Meezan Bank’s strategic focus on diversifying revenue streams beyond traditional Islamic financing. By enhancing Meezan Exchange Company’s capital base, the bank is better positioned to manage liquidity, expand service offerings, and strengthen its footprint in non-banking financial services, while maintaining a strong commitment to shareholder value.
Overall, Meezan Bank’s dual announcement of FY25 financial results and the capital enhancement underscores its intent to balance robust earnings performance with targeted investments in growth areas that support both domestic and cross-border banking operations.
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