MEBL rewards shareholders with Rs7.5 dividend in Q1CY26

April 23, 2026 (MLN): Meezan Bank Limited (PSX: MEBL) reported a largely stable consolidated profit after taxation for the first quarter ended March 31, 2026, recording Rs22.40bn, steady from Rs22.42bn in the corresponding period last year.

However, because the profit attributable to the shareholders of the holding company edged up by 1% to Rs22.31bn, the bank's basic earnings per share (EPS) actually saw a slight improvement, rising to Rs12.39 from Rs12.32 in Q1 2025.

The bank also declared dividend at Rs7.5 per share for the first quarter.

The bank's core Islamic financing margins experienced a mild contraction. Profit/return earned declined by 2% year-on-year to Rs105.85bn.

At the same time, the cost of funds (profit/return on deposits expensed) dropped by 3% to Rs44.41bn. As a result, the net profit/return slipped by just 1% to Rs61.43bn from Rs61.78bn in the prior year.

This slight decline in core income was robustly countered by a massive surge in non-funded income. Total other income jumped by 34% to Rs12.34bn. This exceptional growth was heavily supported by a spike in gains on securities, which soared to Rs952.80m from just Rs11.17m last year.

The bank also benefited from a 26% increase in fee and commission income (Rs9.09bn) and a jump in dividend income (Rs141.33m).

Bolstered by these non-core gains, total income grew by 4% to Rs73.77bn.

On the operational side, overheads escalated significantly amid inflationary pressures.

Operating expenses climbed 20% to Rs23.09bn, pushing total other expenses up 19% to Rs24.05bn.

Furthermore, Meezan Bank booked a Rs1.21bn share of loss from associates, a sharp reversal from the Rs338.49m profit recorded last year. These pressures dragged the profit before credit loss allowance down by 5% to Rs48.51bn.

Fortunately, asset quality provisioning provided substantial relief. The bank’s credit loss allowance and provisions plummeted by 76% to just Rs448.80m compared to the Rs1.86bn booked in Q1 2025.

This massive drop in provisions helped cushion the profit before taxation, which settled down 2% at Rs48.06bn.

Finally, a 4% lower taxation expense of Rs25.66bn allowed Meezan Bank to maintain its bottom line practically flat, securely closing the quarter with Rs22.40bn in profit after taxation.

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