Meezan Bank Limited (MEBL) has posted a profit of Rs. 24.5 billion for the second quarter of the calendar year 2025, translating into earnings per share (EPS) of Rs. 13.65. The figure represents a 9 percent year-on-year (YoY) decline in quarterly earnings.
For the first half of CY25, the bank’s net profit reached Rs. 46.6 billion, down 10 percent from the same period last year. Alongside the results, Meezan Bank announced a cash dividend of Rs. 7.0 per share for the quarter, bringing total payouts for the first half to Rs. 14.0 per share.
Earnings Pressured by Lower Interest Income and Provisions
The decline in profitability was primarily driven by weaker net interest income (NII) and higher provisioning costs. Net profit earned stood at Rs. 63.9 billion, down 9 percent YoY, as profit earned dropped 22 percent and profit expensed decreased 37 percent.
Non-funded income provided some relief, rising 34 percent YoY and 5 percent quarter-on-quarter. This growth was supported by a 26 percent increase in fee income to Rs. 2.8 billion and a sharp surge in foreign exchange income, which jumped over 16 times to Rs. 1.6 billion. Other income grew 58 percent YoY, while dividend income slipped 76 percent to Rs. 116 million.
Provisions during the quarter amounted to Rs. 1.5 billion, compared to a reversal of Rs. 935 million in the same quarter last year and a charge of Rs. 1.9 billion in Q1CY25.
Cost Control and Record Deposits
Operating expenses fell significantly, down 24 percent YoY to Rs. 17.4 billion. This improvement brought the cost-to-income ratio to 23.7 percent, compared to 29.6 percent a year earlier.
The bank’s effective tax rate, however, increased to 55.1 percent from 50.8 percent in Q2CY24.
On the balance sheet front, Meezan Bank’s deposits reached a record high of Rs. 3.0 trillion, marking a major milestone for the country’s largest Islamic bank.