MEBL eyes CY27 Shariah card launch, 1250 branches by year end

August 12, 2026 (MLN): Meezan Bank Limited (PSX: MEBL) is preparing for a formal commercial entry into the credit card segment by 2027 through two newly structured, Shariah-compliant offerings the Meezan Charge Card and the Meezan Islamic Financing Card.

Alongside the product reveal, leadership indicated that it expects the State Bank of Pakistan’s policy rate to remain stable in its current range over the coming quarters, citing relative stability in domestic inflation.

Speaking during the bank’s 2QCY26 corporate briefing session, management detailed a strategic roadmap centered on a "phygital" operating model, continuous network expansion, and an aggressive pivot toward Small and Medium Enterprise (SME) lending to offset industry-wide stagnation in corporate capital formation.

Leadership emphasized that physical branches remain fundamental to deposit mobilization, rejecting purely digital banking models in favor of an integrated network that pairs digital transaction volumes with dedicated branch salesforce operations.

Distinguishing its upcoming card offerings from conventional revolving credit, management clarified that the Meezan Charge Card will require full month-end balance settlement without interest charges.

Meanwhile, the Meezan Islamic Financing Card utilizes a one-time financing facility linked to a deposit drawdown structure.

The Charge Card is currently undergoing internal employee testing, with the Islamic Financing Card scheduled for staff trial within the next few quarters prior to its 2027 public rollout.

To support its deposit base, Meezan Bank plans to open 100 branches by year-end to reach 1,250, after adding 45 new ones in 1HCY26.

On external policy shifts, management acknowledged that the withdrawal of SBP home remittance subsidies will exert pressure on sectoral P&L margins, though the impact is expected to be partially cushioned by strong foreign exchange trade volumes and adjustments in merchant discount rates.

On the financial front, cumulative 1HCY26 net profit reached Rs48.9 billion (EPS: Rs 27.15), up 6% year-on-year from Rs46.1 billion.

In line with the strong earnings performance, the Board of Directors declared an interim cash dividend of Rs8 per share for the second quarter, bringing the total payout for the first half of CY26 to Rs15.50 per share.

Total bank assets crossed the Rs5 trillion landmark during the period, 7% increase from December 2025.

Total deposits expanded 13% to Rs3.7 trillion from December 2025, maintaining a high-quality Current and Savings Account (CASA) ratio of 91%, with current accounts rising 16% YTD.

Operating expenses grew to Rs45.3 billion due to network expansion and human resource investments, driving the cost-to-income ratio to 30%, which remains well below management’s internal threshold of 34-35%.

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