Meezan Bank delivers Rs7 dividend as profit moderates to Rs70bn in 9MFY25

October 24, 2025 (MLN): Meezan Bank Limited (PSX: MEBL) reported a profit after taxation of Rs70.52bn for the nine months ended September 30, 2025, down 10% from Rs78.33bn in the corresponding period last year.

Earnings per share declined to Rs38.59 compared to Rs43.42 in 9MFY24.

Dividend by the company is declared at Rs7 per share.

Profit/return earned on Islamic financing and related assets, investments and placements decreased 17.5% year-on-year to Rs312.13bn from Rs378.34bn, showing lower yields during the period. Profit/return on deposits and other dues expensed fell 24.5% to Rs123.91bn from Rs164.19bn.

Net profit/return contracted 12.1% to Rs188.21bn against Rs214.15bn in 9MFY24.

Fee and commission income increased 19.2% to Rs21.84bn, while dividend income declined 52.3% to Rs232.5m from Rs487.5m last year.

Foreign exchange income surged 8.8 times to Rs5.99bn from Rs608.3m. Gain on securities increased 3.6 times to Rs1.03bn from Rs282.7m in 9MFY24. Other income rose 27.6% to Rs1.15bn from Rs898.1m.

Total other income increased 46.8% to Rs30.24bn from Rs20.60bn last year.

Total income declined 6.9% to Rs218.45bn from Rs234.75bn in 9MFY24.

Operating expenses decreased 4% to Rs61.9bn from Rs64.51bn. Workers welfare fund declined 3.8% to Rs3.35bn from Rs3.48bn. Other charges dropped 84.8% to Rs67.6m from Rs444.1m.

Total other expenses decreased 4.6% to Rs65.31bn from Rs68.43bn last year.

Share of profit of associates increased 2.5 times to Rs3.2bn from Rs1.28bn in the previous year.

Profit before credit loss allowance/provisions stood at Rs156.34bn, down 6.7% from Rs167.59bn in 9MFY24.

The bank reported no extraordinary/unusual items in either period.

Profit before taxation declined 7.8% to Rs152.71bn from Rs165.69bn in 9MFY24.

Taxation declined 5.9% to Rs82.18bn from Rs87.36bn in the prior period.

The bank concluded 9MFY25 with a net profit of Rs70.52bn, delivering a net profit margin of 32.3% compared to 33.4% in 9MFY24.

 The profit decline was driven by compressed net profit/return income and higher credit loss provisions, partially offset by strong growth in foreign exchange income, gains on securities, and increased share of profit from associates.

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