Meezan Bank Posts Rs. 24.5 Billion Profit in Q2, Deposits Hit Record High Rs. 3 Trillion

Meezan Bank Limited (MEBL) has reported earnings of Rs. 24.5 billion (EPS: Rs. 13.65) for 2QCY25, reflecting a 9 percent year-on-year (YoY) decline. This took 1HCY25 profitability to Rs.  46.6 billion, down by 10 percent YoY. Alongside the results, the bank announced a cash dividend of Rs. 7.0 per share, bringing the cumulative payout for 1HCY25 to Rs. 14.0 per share. Earnings weakened due to a decline in net interest income (NII) and elevated provisioning charges, partially offset by support from non-funded income. Net profit earned clocked in at Rs. 63.9 billion, down 9 percent YoY, as profit earned declined 22 percent YoY, while profit expensed dropped 37 percent YoY. Non-funded income, however, grew 34 percent YoY (5 percent QoQ), driven by higher fee income (+26 percent YoY to Rs. 2.8 billion) and a sharp jump in FX income (16.2x YoY to Rs. 1.6 billion). Other income rose 58 percent YoY, while dividend income fell 76 percent YoY to Rs. 116 million. Provisions stood at Rs. 1.5 billion, compared to a reversal of Rs. 935 million in 2QCY24 and a charge of Rs. 1.9 billion in 1QCY25. Operating expenses fell 24 percent YoY to Rs. 17.4 billion, bringing the cost-to-income ratio down to 23.7 percent (vs 29.6 percent SPLY). The effective tax rate rose to 55.1 percent (vs 50.8 percent in 2QCY24). On the balance sheet front, deposits hit an all-time high of Rs. 3.0 trillion. Note: Report based on Result Review by Arif Habib Limited.