Karachi: Meezan Bank Ltd (MEBL) reported a 12 percent year-on-year decline in profitability for the fiscal year 2025, amounting to PKR 89 billion, as shared in an analyst briefing. This decrease, from PKR 101.5 billion in the same period last year, was primarily attributed to a reduction in the bank’s net spread earned.
According to AKD Securities Limited, the net spread earned by Meezan Bank dropped by 12 percent year-on-year to PKR 252 billion. This decline was largely due to a decrease in the policy rate and restrictions related to the Merchant Discount Rate (MDR). Despite this, the bank saw a 13 percent year-on-year increase in total other income, reaching PKR 32.6 billion. This growth was driven by a notable rise in foreign exchange income and fee and commission income. However, the bank’s capital gains and dividend income saw a significant reduction, declining by 70 percent and 8 percent year-on-year, respectively.
Meezan Bank’s briefing provided insights into the financial challenges faced during the year, as well as its future outlook, amid a shifting economic landscape affecting its earnings.