Meezan Bank’s Profit After Tax Declines in Q1 2025

Meezan Bank (MEBL), Pakistan’s largest Islamic bank, reported a consolidated profit after tax (PAT) of Rs22.42 billion for the quarter concluding March 31, 2025. This reflects a 12% decrease compared to the Rs25.08 billion recorded during the corresponding period last year.

According to a notification dispatched to the Pakistan Stock Exchange (PSX) this Monday, the earnings per share (EPS) stood at Rs12.32 for the period, down from Rs13.93 in the first quarter of the previous calendar year.

The bank’s Board of Directors has also declared a cash dividend of Rs7 per share, which is 70%, for the period that ended on March 31, 2025.

The net profit, or return, generated from Islamic financing, related assets, investments, and placements by the bank experienced a dip of over 8%, settling at Rs61.78 billion.

Factors Influencing Profit Decline
  • Decline in interest rates.
  • Implementation of the Minimum Deposit Rate (MDR) on individual portfolios.

Fee and commission income saw an increase of over 22%, reaching Rs7.2 billion, compared to Rs5.91 billion during the equivalent period last year.

The firm’s foreign exchange income demonstrated a substantial surge of over 230%, escalating from Rs478 million in the first quarter of the previous calendar year to Rs1.60 billion in the first quarter of the current calendar year.

Meezan Bank’s total income experienced a 4.3% decrease, dropping from Rs74.22 billion in the first quarter of the previous calendar year to Rs71.02 billion in the first quarter of the current calendar year.

Operating expenses for the bank during the first quarter of the current calendar year totaled Rs19.17 billion, indicating a 7% reduction compared to the Rs20.60 billion recorded in the same period last year.