Meezan Bank’s Profit Declines by 12% in Q1 2025

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

A notification disseminated to the Pakistan Stock Exchange (PSX) on Monday revealed that the earnings per share (EPS) stood at Rs12.32 for the period, down from Rs13.93 in the first quarter of the prior 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, specifically the return on Islamic financing, associated assets, investments, and placements, experienced a decline exceeding 8%, settling at Rs61.78 billion.

Factors Affecting Profit

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

Fee and commission income for the bank during the period reached Rs7.2 billion, marking an increase of over 22% relative to the Rs5.91 billion generated in the same timeframe of the previous year.

The firm’s foreign exchange income demonstrated a substantial surge of over 230%, climbing from Rs478 million in the first quarter of the prior year to Rs1.60 billion in the first quarter of 2025.

Meezan Bank’s total income experienced a 4.3% contraction, decreasing to Rs71.02 billion in the first quarter of 2025 from Rs74.22 billion in the first quarter of the prior year.

During the first quarter of 2025, the bank’s operating expenses totaled Rs19.17 billion, reflecting a 7% decrease compared to the Rs20.60 billion recorded in the equivalent period last year.