AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Meezan Bank has reported promising trends in its financial performance and outlined an ambitious growth strategy at its third-quarter briefing for 2025. The bank’s management shared insights into deposit growth, investment strategies, and future expansion plans.
In September 2025, Meezan Bank’s deposits saw a year-over-year increase of 24%, with its current account ratio improving to 49% from 47% the previous year. The bank’s CASA deposits grew by 28%, enhancing its CASA mix to 94%. Despite these gains, Meezan’s market share in the total industry deposits remained steady at 9%, maintaining a compound annual growth rate of 33% since its inception.
Looking ahead, the bank’s management anticipates deposit growth to remain between 20% and 25% in 2026. Meezan Bank also plans to expand its physical presence by opening 100 to 150 new branches next year, with an expected branch growth of 8% to 10% in 2027.
The bank has allocated 86% of its investment portfolio to Government of Pakistan Ijarah Sukuk (GIS), with 77% in variable GIS yielding 11.7% and fixed GIS yielding over 12%. Asset repricing is anticipated in the fourth quarter, but the bank expects to counterbalance this through volumetric growth.
Meezan Bank’s cost to income ratio slightly increased to 29.3% in the first nine months of 2025, compared to 28.8% in the same period in 2024, largely due to a one-time compensation expense reversal. The management forecasts the cost to income ratio to stabilize around 35%.
The bank plans to maintain its quarterly dividend payout of Rs7 per share. The Capital Adequacy Ratio (CAR) improved to 23.36% in September 2025, up from 20.35% a year earlier.
A notable growth was observed in Meezan’s home remittances, which surged from US$0.8 million to US$2.0 billion in the first nine months of 2025, boosting its market share from 3% to 6.5%. This increase also contributed to a 14% rise in trade volume.
Despite a slight increase in the Non-Performing Loan (NPL) ratio to 2.6%, the bank’s management assured that the overall financial book remains robust. The tax charge remains high due to adjustments following recent changes in the Finance Act, with the effective tax rate expected to stay above 53%.
Financial analysts maintain a “Buy” stance on Meezan Bank, citing a 2025E price-to-earnings ratio of 8.8x and a price-to-book value of 2.6x, with a dividend yield of 7%.