Meezan Bank’s Q1 Profit Declines by 12%

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

A notification submitted to the Pakistan Stock Exchange (PSX) on Monday revealed that the earnings per share (EPS) amounted to Rs12.32 for the period, in contrast to Rs13.93 in the first quarter of the prior year.

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

The net profit, or return, generated from Islamic financing, associated assets, investments, and placements experienced a decline of over 8%, reaching Rs61.78 billion.

Factors Affecting Profitability

According to Topline Securities, a brokerage firm, the reduced spread is attributable to a drop in interest rates, coupled with the implementation of the Minimum Deposit Rate (MDR) on individual portfolios.

Increase in Fee and Commission Income

The fee and commission income secured by the bank during the stated period totaled Rs7.2 billion, marking an increase of over 22% compared to the Rs5.91 billion earned during the same period in the previous year.

Substantial Rise in Foreign Exchange Income

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

Overall Income Decrease

The overall income generated by Meezan Bank experienced a 4.3% decrease, falling from Rs74.22 billion in the first quarter of the prior year to Rs71.02 billion in the first quarter of the current year.

Reduction in Operating Expenses

During the first quarter of the current year, the bank’s operating expenses totaled Rs19.17 billion, reflecting a 7% reduction compared to the Rs20.60 billion recorded in the corresponding period of the previous year.