Meezan Bank Limited is preparing to enter Pakistan’s credit card segment through two Shariah-compliant products targeted for commercial launch in 2027, while also planning further expansion of its physical branch network. The bank is developing the Meezan Charge Card and Meezan Islamic Financing Card as alternatives structured around Islamic financing principles. The plans were disclosed during Meezan Bank’s second quarter calendar year 2026 corporate briefing, where management outlined its broader strategy for network expansion, digital banking and increased lending to small and medium enterprises. Alongside its product roadmap, the bank’s leadership indicated that it expects the State Bank of Pakistan’s policy rate to remain within its current range over the coming quarters, citing relative stability in domestic inflation.
The upcoming Meezan Charge Card and Meezan Islamic Financing Card are being structured differently from conventional revolving credit cards. According to management, the Meezan Charge Card will require customers to settle their entire outstanding balance at the end of each month and will not involve interest charges. The product is currently undergoing testing among the bank’s employees. The Meezan Islamic Financing Card, meanwhile, is based on a one-time financing facility linked to a deposit drawdown structure. The bank plans to begin staff trials of the Islamic Financing Card during the coming quarters before moving toward a wider commercial rollout in 2027. The introduction of the two products would mark Meezan Bank’s formal entry into a segment traditionally associated with conventional revolving credit, while maintaining the bank’s Shariah-compliant banking framework.
Meezan Bank is also planning to expand its branch network as part of a broader “phygital” strategy combining physical banking infrastructure with digital services. Management said physical branches continue to play an important role in deposit mobilisation and rejected an exclusively digital banking model in favour of an integrated approach that combines digital transaction volumes with branch-based sales operations. The bank plans to open 100 additional branches by the end of the year, taking its total network to 1,250 branches. Meezan Bank had already added 45 branches during the first half of calendar year 2026. Alongside branch expansion, management highlighted an increased focus on small and medium enterprise lending as part of its strategy to offset stagnation in corporate capital formation across the banking industry.
Changes in the regulatory and operating environment are also expected to influence the bank’s performance. Management acknowledged that the withdrawal of State Bank of Pakistan subsidies for home remittances could place pressure on profit and loss margins across the banking sector. However, Meezan Bank expects some of this impact to be offset by strong foreign exchange trade volumes and adjustments in merchant discount rates. The bank also reported continued growth across several key financial indicators during the first half of calendar year 2026. Cumulative net profit reached Rs48.9 billion, with earnings per share at Rs27.15, representing a 6% year-on-year increase from Rs46.1 billion. Reflecting the earnings performance, the Board of Directors declared an interim cash dividend of Rs8 per share for the second quarter, taking the total dividend payout for the first half of CY26 to Rs15.50 per share.
Meezan Bank’s total assets crossed the Rs5 trillion mark during the period, representing a 7% increase from December 2025. Total deposits grew 13% to Rs3.7 trillion from the December 2025 level, while the bank maintained a Current and Savings Account ratio of 91%. Current accounts increased 16% on a year-to-date basis, supporting the bank’s deposit position. Operating expenses increased to Rs45.3 billion as the bank invested in branch expansion and human resources, pushing the cost-to-income ratio to 30%. Despite the increase in operating costs, the ratio remained below management’s internal threshold of 34% to 35%. With the planned introduction of its two Shariah-compliant card products in 2027, continued branch expansion and greater emphasis on small and medium enterprise financing, Meezan Bank is positioning its next phase of growth around a combination of physical banking infrastructure, digital services and Islamic financial products.
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