Meezan Bank posted unconsolidated earnings of Rs. 23.4 billion in the first quarter of 2026, with earnings per share rising to Rs. 13.0, marking a six percent increase year-on-year and a seven percent rise quarter-on-quarter.
Non-operating income reached Rs. 11.1 billion in Q1 2026, reflecting a 36 percent increase year-on-year driven by fee and commission income growth of 26 percent and a 58 percent rise in dividend income year-on-year.
The bank reported foreign exchange income of Rs. 1.8 billion in Q1 2026, representing a 13 percent increase compared to the same period in the prior year.
Net spread declined by one percent year-on-year and four percent quarter-on-quarter to Rs. 61.4 billion in Q1 2026, attributed to a 50 basis point reduction in interest rates in December 2025.
Operating expenses rose 18 percent year-on-year but declined four percent quarter-on-quarter to Rs. 23.2 billion, with the cost-to-income ratio at 31.9 percent compared to 28.1 percent in Q1 2025 and 33.8 percent in Q4 2025.
Provision expense totalled Rs. 449 million in Q1 2026, down 76 percent year-on-year and up 78 percent quarter-on-quarter, while the effective tax rate stood at 52.21 percent against 54.52 percent in Q1 2025.
Deposits grew ten percent quarter-on-quarter to Rs. 3.6 trillion, and investments rose three percent quarter-on-quarter to Rs. 2.7 trillion, while advances fell nine percent quarter-on-quarter to Rs. 1.5 trillion.
The bank declared an interim cash dividend of Rs. 7.5 per share for Q1 2026, exceeding the analyst forecast of Rs. 7.0 per share issued by Topline Securities.
Topline Securities lists Meezan Bank as its preferred pick in Pakistan’s banking sector, with the stock trading at a 2026 estimated price-to-earnings ratio of 9.7x, a price-to-book value of 2.6x, and a dividend yield of six percent.
