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Meezan Bank (MEBL) investor relations material

Meezan Bank Q1 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 2025 earnings summary29 Apr, 2025

Executive summary

  • Profit after tax for Q1'25 declined 12% year-over-year to Rs 22.0–22.1 billion, mainly due to lower policy rates and higher taxes.

  • Total assets grew 32% year-over-year to Rs 4.03 trillion, led by increases in investments and financings.

  • Deposits rose 27% year-over-year to Rs 2.88 trillion, with CASA deposits comprising 93% of the mix.

  • Return on equity stood at 36–36.2% for Q1'25.

  • 70% cash distribution to shareholders for Q1'25, with an interim dividend of Rs 7.00 per share approved.

Financial highlights

  • Net spread earned decreased 8% year-over-year, while total/operating income fell 5% to Rs 69.97–70.0 billion.

  • Operating expenses dropped 7% year-over-year, improving the cost-to-income ratio to 28–28.1%.

  • Fee, commission, and other income increased 10–29% year-over-year, with strong growth in trade-related and debit card fees.

  • Gross financings declined 7% sequentially from December 2024, while investments increased 10%.

  • Gross advances to deposits ratio (ADR) at 50.1%, down from 60.2% in December 2024.

Outlook and guidance

  • Management focuses on digital transformation, branch expansion, and maintaining high CASA ratios.

  • Emphasis on asset quality, prudent risk management, and alignment with government’s Islamic finance push.

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