Meezan Bank Limited, the largest Islamic financial institution in Pakistan, is preparing for a major expansion of its retail product suite with the upcoming introduction of Shariah-compliant credit cards. During its most recent corporate briefing session for the calendar year 2025, the bank management confirmed that the proposed credit card product has been submitted to the Shariah board for final approval. Simultaneously, the technical and system configurations required to support this new offering are already being implemented. While the development is in its advanced stages, the bank is targeting a comprehensive nationwide rollout by the calendar year 2027. This move represents a strategic pivot for Meezan Bank, aiming to capture a larger share of the consumer financing market while adhering strictly to Islamic financial principles.
The bank’s financial performance for the calendar year 2025 showcased a mix of resilience and adjustment to changing market conditions. Meezan Bank reported a net profit of 89 billion rupees, translating to an earnings per share of 49.5 rupees. This figure reflects a 12% year-on-year decrease compared to the 101.5 billion rupees and earnings per share of 56.4 rupees recorded in the previous year. Despite this moderate cooling in earnings, the bank’s operational metrics remain exceptionally healthy. Management highlighted a surge in deposit momentum, which grew by 28% during the year. Looking ahead, the bank expects to maintain a sustainable deposit growth trajectory between 20% and 25%, indicating continued public trust in its Shariah-compliant model.
One of the standout features of the bank’s balance sheet remains its Current Account Savings Account (CASA) mix, which stands at a robust 91%. The management has reaffirmed its long-term commitment to keeping this ratio above the 90% threshold, which ensures a lower cost of funds and high liquidity levels. Furthermore, the bank’s efficiency remains benchmarked at a high standard, with a cost-to-income ratio of 30.4%. While the bank is investing heavily in digital and physical infrastructure, it has set a near-term ceiling of 40% for this ratio to ensure profitability remains optimized. The bank’s capital adequacy ratio of 19.2% stays comfortably above the regulatory requirement of 11.5%, providing a significant buffer for future credit growth and unforeseen market fluctuations.
On the physical infrastructure front, Meezan Bank is not slowing down its traditional footprint expansion. Building on its current network of 1,105 branches, the bank plans to add between 100 and 150 new locations during the calendar year 2026. This aggressive physical expansion is being paired with a strong push toward digital adoption. Interestingly, the bank reported a slight dip in fee income from debit cards, which fell to 9,086 million rupees from 9,571 million rupees in 2024. Management explained that this was a deliberate outcome of a strategy to aggressively push debit card adoption among its vast user base, which involved fee structures that temporarily impacted revenue but secured long-term customer loyalty and digital engagement.
The performance of Meezan Bank’s subsidiaries also contributed positively to the group’s overall health. Al Meezan Investment Management Limited delivered a stellar performance, reporting a profit after tax of 4.2 billion rupees. The subsidiary achieved an impressive return on equity of 76.4%, underscoring its dominance in the Islamic asset management space. As Meezan Bank moves toward its goal of becoming a full-spectrum digital and physical Islamic bank, its focus on credit cards and branch expansion demonstrates a dual-track strategy to dominate both the high-tech and high-touch segments of the Pakistani banking landscape.
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