Meezan Bank Reports Rs22.42 Billion Profit in Q1CY25 Amid Decline in Earnings
Meezan Bank Limited (MEBL), Pakistan’s largest Islamic bank, reported a consolidated profit after tax (PAT) of Rs22.42 billion for the quarter ending March 31, 2025. This marks a 12% decrease from the Rs25.08 billion recorded during the same period last year.
According to a notification sent to the Pakistan Stock Exchange (PSX) on Monday, the bank’s earnings per share (EPS) stood at Rs12.32 for Q1CY25, down from Rs13.93 in Q1CY24.
Despite the year-on-year decline in profit, the Board of Directors announced a robust cash dividend of Rs7 per share (70%) for the period under review.
The decline in profitability comes after a strong showing in 2023, where Meezan Bank’s net profit rose nearly 91%. However, the current quarter reflects broader macroeconomic shifts. The net profit/return earned on Islamic financing, investments, and placements dropped by more than 8% to Rs61.78 billion. According to brokerage house Topline Securities, this reduction is primarily due to a decrease in interest rates and the implementation of the Minimum Deposit Rate (MDR) on the individual portfolio.
On the upside, Meezan Bank reported strong growth in non-core income streams. The bank’s fee and commission income increased over 22% year-on-year to Rs7.2 billion, while foreign exchange income surged more than 230%, jumping from Rs478 million in Q1CY24 to Rs1.60 billion in Q1CY25.
Overall, the bank’s total income declined by 4.3%, dropping from Rs74.22 billion to Rs71.02 billion year-on-year. Nonetheless, Meezan Bank managed to cut down its operating expenses to Rs19.17 billion — a 7% decrease compared to Rs20.60 billion in the corresponding quarter last year.
As Pakistan’s premier Islamic financial institution, Meezan Bank’s performance remains under close scrutiny by investors and analysts alike. While the Q1 numbers reflect some headwinds, cost control and diversification in income sources continue to provide a degree of resilience.
