Meezan Bank reported unconsolidated earnings of Rs21.8 billion in the fourth quarter of 2025, reflecting a 10 percent decline year-on-year while showing a modest four percent increase quarter-on-quarter.
This takes the bank’s total unconsolidated profit for 2025 to Rs89 billion, representing a 12 percent decline compared to 2024, with earnings per share recorded at Rs49.5 for the full year.
The bank declared a final cash dividend of Rs7.0 per share for 4Q2025, consistent with market expectations, bringing total dividends for 2025 to Rs28.0 per share for its shareholders.
Net spread earned by the bank fell by 11 percent year-on-year to Rs64 billion in 4Q2025 but increased three percent quarter-on-quarter, mainly due to volumetric growth in the banking portfolio.
Meezan Bank’s expenses rose 35 percent year-on-year to Rs26.1 billion in 4Q2025, while falling nine percent compared to the previous quarter, keeping the cost-to-income ratio stable at 34 percent.
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The bank’s 2025 cost-to-income ratio was 30 percent, aided by reversal of approximately Rs11 billion in variable compensation expenses recorded in the first half of the year.
Provision expenses remained minimal at Rs0.3 billion in 4Q2025, compared with Rs7.3 billion in the same period last year and matching the previous quarter’s provision expense of Rs0.3 billion.
Other income fell 36 percent year-on-year and 27 percent quarter-on-quarter to Rs6.9 billion, affected by the absence of securities gains and a Rs0.5 billion loss in foreign exchange income.
Meezan Bank’s effective tax rate remained steady at 53.4 percent in 4Q2025, showing a decrease from 58 percent in the same quarter of 2024 while remaining stable compared to 3Q2025.
On the balance sheet, deposits increased four percent quarter-on-quarter to Rs3.3 trillion, investments rose three percent to Rs2.6 trillion, while advances declined 45 percent to Rs1.64 trillion in 4Q2025.
The bank continues to be a preferred pick in the banking sector, trading at a 2026E price-to-earnings ratio of 9.8x, a price-to-book value of 2.7x, and a dividend yield of six percent.
