Meezan Bank recorded a profit of Rs22.042 billion (earnings per share of Rs12.28) in the first quarter of 2025. The record marked a decline of 11.6% compared to the Rs 24.942 billion earned in the same period last year.
Analysts at Topline Securities noted that the bank’s financial performance aligned with market expectations. In addition to announcing its quarterly results, Meezan Bank declared a temporary cash cut of Rs7.00 per share for its investors.
The bank’s net expansion declined by 8% year over year and 15% quarter over quarter to Rs62 billion, primarily due to lower interest rates and the implementation of Minimum Deposit Rate requirements.
Provision expenses rose significantly to Rs1.85 billion, compared to Rs263 million in the first quarter of 2024, although they showed improvement from the Rs7.3 billion recorded in the previous quarter.
On a positive note, Meezan Bank’s noninterest income grew by 29% year on year to Rs8.2 billion, driven by a 10% increase in fee and commission income (Rs5.5 billion) and a substantial 3.3 times growth in foreign exchange income (Rs1.6 billion).
Operating expenses showed a 7% annual reduction but increased by 9% consecutively to Rs19.6 billion, reflecting the bank’s expanding branch network and inflationary pressures. The bank’s balance sheet demonstrated mixed trends, with deposits growing by 11%.
The increase represented a quarter-on-quarter increase to Rs 2.9 trillion, with investments rising by 10% to Rs 2.1 trillion, while advances declined by 8% to Rs 1.4 trillion. Meezan Bank’s effective tax rate for the quarter stood at 55%, higher than the 52% recorded in the first quarter of 2024 but lower than the 58% rate in the previous quarter.