Karachi: Meezan Bank Ltd (MEBL), a prominent financial institution, reported a 12% year-over-year decline in profitability for the calendar year 2025, dropping to PKR 89.0 billion from PKR 101.5 billion in the same period last year, according to an analyst briefing held yesterday. The bank attributed this decrease to a reduction in Net Spread Earned, a consequence of declining policy rates.
According to AKD Securities Limited, the return on financings, investments, and placements fell by 15% year-over-year, while returns on deposits and other dues expensed decreased by 19% over the same period. The growth in deposits partly mitigated the effects of declining yields.
Despite these challenges, Meezan Bank's total other income rose by 13% year-over-year to PKR 32.6 billion in 2025. This increase was primarily driven by a rise in foreign exchange income and fee and commission income. However, the bank experienced a significant decline in capital gains and dividend income, which dropped by 70% and 8% year-over-year, respectively.
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