Meezan Bank net profit falls 10% amid core income squeeze

Meezan Bank Limited (PSX: MEBL) reported a profit after taxation of Rs. 70.52 billion for the nine months ended September 30, 2025, reflecting a 10% decline compared to Rs. 78.33 billion in the same period last year.

Key Financial Highlights (9MFY25):

• Earnings Per Share (EPS): Decreased to Rs. 38.59 from Rs. 43.42.

• Dividend: Declared a payout of Rs. 7 per share.

• Net Profit/Return: Contracted 12.1% to Rs. 188.21 billion.

• Total Income: Declined 6.9% to Rs. 218.45 billion.

• Profit Before Taxation: Fell 7.8% to Rs. 152.71 billion.

• Net Profit Margin: Stood at 32.3%, down from 33.4% in 9MFY24.

The bank's performance was primarily weighed down by a significant compression in its core income, with net profit/return falling 12.1% due to lower yields on Islamic financing assets. This core weakness was partially offset by a robust 46.8% growth in other income, driven by an 8.8-fold surge in foreign exchange income and a 3.6-fold increase in gains on securities. The bank also showed disciplined cost control, reducing total other expenses by 4.6%. However, a 91.2% increase in credit loss provisions further pressured the bottom line.