Meezan Bank Limited reported consolidated earnings per share of PKR 50.16 in CY25, down 12% from PKR 56.97 in CY24. This translates into profit after tax of PKR 92.2 Bn compared to PKR 103.7 Bn in SPLY. The bank declared a dividend of PKR 28 per share in CY25, in line with PKR 28 in CY24.
Total income in CY25 reached PKR 294 Bn against PKR 322 Bn in CY24, a decrease of 9%. This was primarily driven by a 12% drop in net mark-up income from PKR 287 Bn in CY24 to PKR 252 Bn in CY25. The bank saw its total deposits rise from PKR 2.6 Trn at the end of CY24 to PKR 3.3 Trn at the end of CY25, an increase of 28%.
This was driven by a 29% growth in current account deposits. Out of the total deposit base, 71% are attributable to individuals and sole proprietors. Management is targeting CY26 deposit growth of 20-25%. Investments stood at PKR 2.6 Trn at the end of CY25, up 39% from PKR 1.9 Trn at the end of CY24.
Management highlighted that out of its portfolio, 27% is in fixed rate instruments with weighted average yield of 11.5% and a duration of 1.6 years while 73% of the book is in variable rate instruments. The bank’s cost to income ratio for CY25 stood at 30% compared to 27% in CY24. Moving forward, the management expects this to stabilize at near 35%. Capital Adequacy Ratio stood at 19.2% at end Dec-25, down from 20.4% at the end of CY24. With regards to a question on why the bank is not deploying more capital given its high CAR ratio, the management informed that upcoming regulatory changes for the reclassification of the banking book to the trading book is expected to have a negative impact of 1-1.5%. Therefore, the bank chooses to be prudent and maintain adequate buffers for future growth. Moving forward, the management believes that the policy rate has bottomed out and it is likely that SBP will hike the rate by 1-2% in its upcoming MPC meeting.
Important Disclosures
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