Half-Year Profit Rises as Earnings Remain Resilient
Meezan Bank Limited has reported a profit after tax of Rs48.64 billion for the first six months of 2026.
The result represents an increase from Rs47.14 billion recorded during the same period last year.
Earnings per share improved to Rs26.71 for the January-June period. EPS stood at Rs25.97 in the corresponding period of 2025.
The bank’s profit before tax reached approximately Rs103 billion during the first half.
Taxation amounted to around Rs54.6 billion.
The results indicate continued earnings growth despite changes in Pakistan’s interest rate environment and rising operating costs.
Meezan Bank had already reported profit after tax of Rs23.4 billion during the first quarter of 2026. The second quarter provided further earnings momentum.
For the April-June quarter alone, profit after tax reached Rs25.79 billion.
This translated into quarterly earnings per share of Rs14.32.
Second-quarter earnings increased approximately five percent compared with the same period last year.
Profit also rose around 16 percent compared with the first quarter of 2026.
The improvement was supported by stronger core banking income and growth in non-funded revenue.
Deposits Reach Record Rs3.74 Trillion
Meezan Bank continued to expand its deposit base during the first half of the year.
Total deposits increased 23 percent year-on-year to a record Rs3.74 trillion.
Deposits also increased around three percent compared with the previous quarter.
The strong deposit growth provides the bank with a larger funding base for financing and investment activities.
Meezan Bank had reported deposits of approximately Rs3.6 trillion at the end of March 2026.
The latest figures therefore show continued growth during the second quarter.
The bank also recorded significant expansion in its financing portfolio.
Net advances increased 39 percent compared with the same period last year.
Advances rose around seven percent compared with the previous quarter.
Investments increased approximately eight percent quarter-on-quarter.
The expansion indicates stronger deployment of funds across financing and investment activities.
However, growth in the financing portfolio also resulted in higher provisioning expenses.
Provisions increased 42 percent year-on-year to approximately Rs2.2 billion during the first half.
Borrowings increased by around 25 percent compared with the previous quarter as the bank met additional funding requirements.
Fee and Foreign Exchange Income Record Strong Growth
Meezan Bank’s net profit earned reached Rs128.80 billion during the first six months of 2026.
Non-funded income also made a significant contribution to overall earnings.
Non-funded income increased 29 percent year-on-year to Rs11.88 billion.
Fee and commission income was one of the strongest contributors.
It increased 28 percent to approximately Rs8.8 billion.
The increase reflected higher transaction volumes and continued expansion in banking services.
Foreign exchange income also recorded substantial growth.
The bank generated approximately Rs2.5 billion from foreign exchange activities.
This was more than double the amount reported during the corresponding period last year.
The stronger contribution from fee income and foreign exchange operations helped diversify revenue beyond the bank’s core financing business.
Meezan Bank remains Pakistan’s largest full-fledged Islamic commercial bank and has continued expanding its retail and digital banking operations.
At the end of March, the bank operated 1,115 branches across 365 cities and maintained more than 1,350 ATMs nationwide.
The bank has also continued focusing on low-cost deposits and current accounts to support profitability.
Meezan previously said individuals represented the largest portion of its deposit base.
Its management has targeted deposit growth of between 25 and 30 percent during 2026.
Meezan Bank Declares Rs8 Interim Dividend
Meezan Bank’s board has also approved an interim cash dividend of Rs8 per share.
The latest payout follows the Rs7.50 per share interim dividend announced after the first quarter.
This brings the cumulative cash dividend for 2026 to Rs15.50 per share.
The first-quarter dividend represented a payout of 75 percent based on the face value of the shares.
The higher second-quarter payout reflects the bank’s continued profitability and capital position.
Meezan Bank also maintained a strong dividend record during 2025.
The bank paid total cash dividends of Rs28 per share for that year.
Its full-year profit after tax for 2025 stood at approximately Rs89 billion.
The latest half-year results suggest that the bank remains on a strong earnings path in 2026.
However, profitability will continue to depend on financing growth, deposit mobilisation, policy rates, taxation and Pakistan’s wider economic environment.
The bank’s effective tax rate during the latest quarter stood at approximately 52.9 percent.
That was lower than around 55 percent during the corresponding quarter last year.
Despite the heavy tax burden, Meezan Bank delivered higher earnings and continued expanding deposits and financing.
The combination of record deposits, growing advances and stronger fee income helped support the bank’s performance during the first half of 2026.
