Meezan Bank Limited (PSX: MEBL) reported a profit after tax of Rs70.52 billion for the nine months ended September 30, 2025, down 10% from Rs78.33 billion in the corresponding period last year.
Earnings per share declined to Rs38.59 compared to Rs43.42 in 9MFY24, while the bank declared a dividend of Rs7 per share for the period.
Meezan Bank’s profit/return earned on Islamic financing, investments, and placements dropped 17.5% year-on-year to Rs312.13 billion from Rs378.34 billion due to lower yields during the period. Profit/return on deposits and other dues expensed also decreased 24.5% to Rs123.91 billion from Rs164.19 billion. As a result, net profit/return contracted 12.1% to Rs188.21 billion from Rs214.15 billion in 9MFY24.
Fee and commission income rose 19.2% to Rs21.84 billion, while dividend income dropped 52.3% to Rs232.5 million from Rs487.5 million last year. Foreign exchange income, however, surged 8.8 times to Rs5.99 billion from Rs608.3 million, and gain on securities jumped 3.6 times to Rs1.03 billion from Rs282.7 million. Other income also improved 27.6% to Rs1.15 billion from Rs898.1 million.
Total other income increased 46.8% to Rs30.24 billion from Rs20.60 billion, but total income declined 6.9% to Rs218.45 billion from Rs234.75 billion in the prior year.
Operating expenses decreased 4% to Rs61.9 billion from Rs64.51 billion, while workers welfare fund fell 3.8% to Rs3.35 billion. Other charges dropped 84.8% to Rs67.6 million from Rs444.1 million, bringing total other expenses down 4.6% to Rs65.31 billion from Rs68.43 billion.
Meezan Bank’s share of profit from associates rose 2.5 times to Rs3.2 billion from Rs1.28 billion. Profit before credit loss allowance stood at Rs156.34 billion, reflecting a 6.7% decline from Rs167.59 billion in 9MFY24.
Profit before tax fell 7.8% to Rs152.71 billion compared to Rs165.69 billion, while taxation decreased 5.9% to Rs82.18 billion.
Meezan Bank concluded the nine-month period with a net profit margin of 32.3%, slightly lower than 33.4% a year earlier. The profit decline was largely driven by compressed net returns and higher credit loss provisions, partially offset by strong foreign exchange income, higher gains on securities, and increased profit from associates.