Meezan Bank, the largest Islamic bank in Pakistan, has earned a profit of Rs22 billion in the first three months of 2025, showing that the bank continues to perform strongly despite a slight drop compared to the same period last year.
According to official figures, the bank made Rs24.9 billion in profit in the first quarter of 2024, which means this year’s profit is about 11.6% lower. Even so, experts say the performance was in line with expectations and remains solid.
Meezan also announced a cash dividend of Rs7 per share for its shareholders, continuing its tradition of rewarding investors.
Why Did the Profit Drop?
The bank earned less from its core operations, mainly because:
-
Interest rates have gone down, so banks earn less from lending.
-
A new rule (Minimum Deposit Rate) means banks have to pay a fixed return to individual deposit holders, which cuts into profits.
Additionally, Meezan had to set aside more money to cover possible loan losses, which further affected the final profit figure.
What Helped Meezan Stay Strong?
Even with lower earnings from lending, Meezan Bank did well in other areas:
-
It made more money from service charges, like fees and commissions.
-
Its foreign exchange earnings tripled, showing strong performance in currency-related transactions.
The bank also kept its expenses mostly under control, even as it continued to expand its branch network across the country.
Bank Growth in Numbers:
-
Deposits increased by 11% in the last three months, now totaling Rs2.9 trillion.
-
Investments also grew by 10%, while loans to customers slightly dropped by 8%—likely due to cautious lending.
