Karachi: Meezan Bank Ltd. (MEBL) announced its first quarter financial results for the year 2026, revealing a profit of PkR23.4 billion with earnings per share standing at PkR13.0. This marks a year-on-year increase of 6% and a quarter-on-quarter rise of 7%. Despite this growth, the results were slightly below expectations due to a lower than anticipated Net Spread Earned. The bank also declared an interim cash payout of PkR7.5 per share, exceeding the expected PkR7.0 per share.
According to AKD Securities Limited, the Net Spread Earned for the quarter was PkR61.4 billion, reflecting a decline of 1% year-on-year and 4% quarter-on-quarter. This decrease was attributed to a drop in Return on Assets, which was not offset by a corresponding decline in Profit on Deposits. Additionally, the return on Islamic financing and assets saw a decrease of 2% both year-on-year and quarter-on-quarter, reaching PkR105.8 billion. The decline was largely due to reduced yields on investments and financing, leading to an estimated fall in the bank's Net Interest Margins (NIMs) to 5.6% from 7.1% in the same period last year.
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