Meezan Bank plans aggressive branch expansion to drive deposit growth

November 11, 2025 (MLN):  Meezan Bank Ltd (PSX:MEBL) plans a major branch expansion to strengthen its deposit base, with management sharing that the network will exceed 1,100 branches by the end of 2025, followed by the addition of 100–150 new outlets in 2026 and further 8–10% growth in 2027.

The expansion aims to support the bank’s target of 20–30% annual deposit growth, backed by both physical and digital channels, as highlighted in the company’s corporate briefing session.

Deposits rose 23% year-on-year to Rs 3.18 trillion, led by a 27% increase in current accounts, which strengthened the CASA ratio to 94% (49% current and 45% savings).

Management said the bank’s strategy combines branch network growth with a strong push in digital banking. The continued digital shift, it added, enhances efficiency and helps offset pressure from the minimum deposit rate (MDR) on margins.

Meezan’s management also reaffirmed plans to maintain a quarterly dividend of Rs 7 per share, targeting a 50% payout ratio in line with its growth strategy and capital position.

The bank’s Capital Adequacy Ratio (CAR) stood at a healthy 23.3%, comfortably above regulatory requirements, providing room to fund expansion and maintain its dividend policy. Although Meezan is retiring its Tier-II capital, it intends to keep a capital buffer in the 15–16% range preferred by rating agencies.

The bank now targets an ADR of around 45%, depending on economic growth and corporate lending opportunities.

Meezan also reported growth in its trade and remittance businesses. The bank maintained a 10% market share in trade finance, while its share in remittances doubled.

Meezan Bank reported a profit after tax of Rs 22billion (EPS: Rs 12) for the third quarter of 2025, a 13% decline from the same period last year. This brought nine-month earnings to Rs70.52 billion, down 10% year-on-year.

The bank declareda cash dividend of Rs 7 per share, taking total payouts for the nine months to Rs 21 per share.

The bank’s current stock are trading at Rs421.7 down 1.1% as of [10:20 am] PST, according to data reported by Mettis Global.

Furthermore, it was mentioned that 20% of home remittances are deposited into Meezan Bank accounts, and a repricing of approximately 20–30 basis points is anticipated in the fourth quarter.

The company also highlighted two big challenges one relating to the growth in economy in order to maintain its financing book and second how fast and far effective the digital channels will be in attracting customers.

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