Meezan Bank (MEBL) Q4 2025 earnings summary

Executive summary

• Profit after tax declined by 12% year-over-year to Rs 89.0 billion, primarily due to a lower average policy rate in 2025 compared to 2024.

• Total assets grew by 23% to Rs 4.81 trillion, with significant growth in investments and deposits.

• Deposits increased by 28% year-over-year to Rs 3.30 trillion, with a CASA ratio of 91%.

• The branch network expanded to 1,105 branches across 363 cities.

• Distribution to shareholders included a 280% cash dividend.

Financial highlights

• Net spread earned decreased by 12% year-over-year to Rs 252.5 billion.

• Fee, commission, and other income grew by 6% to Rs 22.7 billion.

• Operating expenses increased by 3% to Rs 86.8 billion.

• Cost to income ratio rose to 30.4% from 26.8% in 2024.

• Basic earnings per share fell 13% year-over-year to Rs 49.54.

Outlook and guidance

• Management highlighted continued focus on digitalization, branch expansion, and maintaining asset quality.

• Emphasis on growing fee-based income and maintaining high CASA ratios.