Meezan Bank H1 profit rises 3%, declares Rs8 dividend

August 06, 2026 (MLN): Meezan Bank Limited (PSX: MEBL) recorded a 3% increase in its consolidated net profit for the six months ended June 30, 2026, with profit after taxation climbing to Rs48.64bn from Rs47.14bn in the corresponding period last year.

Showing this steady bottom-line growth, the bank's basic earnings per share (EPS) expanded to Rs26.71 from Rs25.97 in 1HFY25, while diluted EPS rose to Rs26.54 from Rs25.81.

The Board of Directors has declared an interim cash dividend of Rs8.00 per share (80%) for the half year ended June 30, 2026. This is in addition to the interim dividend of Rs7.50 per share (75%) already paid.

Total income grew 6% year-on-year to Rs153.02bn from Rs144.18bn in the prior period.

On the core financing spread, profit/return earned on Islamic financing and related assets, investments and placements rose 6% to Rs222.82bn, while profit/return on deposits and other dues expensed grew at a faster pace of 12% to Rs94.03bn, causing net profit/return to expand at a more modest 2% to Rs128.80bn from Rs125.74bn.

The standout contributor was a strong 31% surge in total other income to Rs24.22bn from Rs18.44bn. Fee and commission income rose 27% to Rs17.84bn, foreign exchange income grew 56% to Rs4.33bn, gain on securities jumped 52% to Rs1.02bn, and dividend income rose 47% to Rs255.28m. Other income, however, eased 4% to Rs775.75m.

On the expenditure side, operating expenses rose 30% to Rs45.28bn the primary headwind of the period. Workers' Welfare Fund declined marginally by 3% to Rs2.14bn, while other charges collapsed by 96% to just Rs2.26m from Rs62.88m. Total other expenses rose 28% to Rs47.42bn from Rs37.19bn.

The profit subtotal before associate contribution and provisions eased 1% to Rs105.60bn. Share of profit of associates declined 63% to Rs261.82m from Rs711.21m.

Profit before credit loss allowance and provisions slipped 2% to Rs105.86bn. Credit loss allowance, provisions and write-offs net declined 23% to Rs2.60bn from Rs3.38bn, providing a partial offset and limiting the drag on the pre-tax line.

Profit before taxation eased 1% to Rs103.26bn from Rs104.33bn. Taxation declined 5% to Rs54.61bn from Rs57.19bn a proportionally larger reduction than the pre-tax dip providing the decisive cushion that converted the marginal pre-tax decline into a 3% increase in profit after taxation.

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