Meezan Bank (MEBL) investor relations material

Executive summary

• Profit after tax for HY'26 rose 6% year-over-year to Rs.48.9 billion, with basic EPS at Rs.27.15 and ROE at 34.7%.

• Total assets increased 7% since Dec-25 to Rs.5.14 trillion, and deposits grew 13% to Rs.3.74 trillion.

• Interim cash dividend of Rs 8.00 per share for Q2, totaling Rs 15.50 per share for H1 2026.

• Maintained a strong capital adequacy ratio above 19%, well above regulatory requirements.

• The bank expanded its branch network to 1,150 branches across 372 cities.

Financial highlights

• Operating income for HY'26 reached Rs.150.4 billion, a 6% increase year-over-year.

• Fee, commission, and other income grew 24% year-over-year, led by debit card and branch banking fees.

• Operating expenses rose 26% year-over-year, leading to a cost-to-income ratio of 30.1%.

• Total assets grew 7% to Rs 5.14 trillion; investments up 12% to Rs 2.90 trillion.

• Deposits increased 13% to Rs 3.74 trillion; gross advances to deposits ratio (ADR) declined to 43.8%.

Outlook and guidance

• Focus remains on balanced, sustainable growth and sectoral diversification, with continued digital transformation and expansion of both physical and digital channels.

• Ongoing geopolitical tensions in the Middle East pose risks, but strong capital base and prudent risk management support resilience.

• Enhanced digital banking platforms and migration to new card/ATM systems to drive future innovation and customer acquisition.

• Maintains a strong capital position with a CAR of 19.2%, well above regulatory requirements.