KARACHI – Meezan Bank Limited (MEBL) has reported earnings of Rs. 24.5 billion (EPS: Rs. 13.65) for the second quarter of calendar year 2025 (2QCY25), reflecting a 9% year-on-year (YoY) decline. This took the bank’s half-year (1HCY25) profitability to Rs. 46.6 billion, down 10% YoY.
Alongside the results, the bank announced a cash dividend of Rs. 7.0 per share, taking the cumulative payout for 1HCY25 to Rs. 14.0 per share.
Earnings were weighed down by a drop in net interest income (NII) and elevated provisioning charges, partially offset by higher non-funded income. Net profit earned stood at Rs. 63.9 billion, down 9% YoY, as profit earned fell 22% while profit expensed declined 37% YoY.
Non-funded income rose 34% YoY (5% QoQ), driven by a 26% jump in fee income to Rs. 2.8 billion and a sharp surge in foreign exchange income — up 16.2 times YoY to Rs. 1.6 billion. Other income climbed 58% YoY, while dividend income plunged 76% YoY to Rs. 116 million.
Provisions amounted to 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% YoY to Rs. 17.4 billion, bringing the cost-to-income ratio down to 23.7% from 29.6% in the same period last year. The effective tax rate increased to 55.1% from 50.8% in 2QCY24.
On the balance sheet front, deposits reached a record high of Rs. 3.0 trillion.
