Meezan Bank Profit Falls 11% to Rs23.4bn in Q3 2025

Meezan Bank, Pakistan’s largest Islamic bank, reported a profit drop in the third quarter of 2025.
Its consolidated profit after tax fell to Rs23.38 billion, down 11% from Rs26.21 billion in the same period last year.
Earnings per share also declined to Rs12.65 from Rs14.52 a year earlier.
The bank shared these figures in a notice to the Pakistan Stock Exchange on Friday.
Despite the decline, Meezan Bank announced an interim cash dividend of Rs7 per share, equal to 70%.
This comes in addition to the earlier dividend of Rs14 per share, totaling a 140% payout so far.

Income and Expenses Shift

Meezan Bank’s net return on Islamic financing, investments, and placements fell sharply.
It earned Rs62.47 billion in this category, showing a 19% decline compared to last year.
However, fee and commission income provided some relief, rising 12% to Rs7.8 billion.
Foreign exchange income also soared impressively.
It jumped over 93 times—from Rs29 million last year to Rs2.75 billion this quarter.
This growth highlights stronger treasury operations despite other income pressures.
However, total income still slipped 11%, falling to Rs73.8 billion from Rs83.05 billion a year ago.
Operating expenses rose 20%, reaching Rs26.5 billion compared to Rs22.1 billion previously.
As a result, profit before tax dropped 17% to Rs48.4 billion.
The bank paid Rs25 billion in taxes during the quarter, marking a 22% decrease from last year.
Analysts believe the bank’s focus on stable growth and digital expansion may balance future earnings.
Investors, however, are likely to stay cautious amid ongoing cost pressures.