Top 3 banking stocks according to analysts
Investing in the banks provides a reliable option for those seeking stable returns and long-term growth. Among Pakistan’s banking sector, three consistently deliver high-quality results based on the return on equity (ROE), dividend yields, and strong earnings.
We decided to dig up analyst reports and determine the top 3 banking stocks according to analysts.
3. Habib Metro Bank (HMB)
Habib Metro Bank (HMB) secures third rank due to its steady growth and stable dividend payments. It suggests a compelling investment opportunity for stability and consistency seeking investors.
- EPS: EPS is expected to grow consistently though at a slower rate than its competitors.
- Earnings Growth: Earnings are projected to recover in 2025 and 2026, showing its growth potential.
- Dividend Yield: A stable and attractive dividend yield of 11.5% which is similar to UBL.
- ROE: Though ROE is predicted to decline, but the decrease is not huge and is recoverable.
| Metric | 2024 | 2025 | 2026 |
|---|---|---|---|
| EPS | 21.8 | 22.1 | 23.1 |
| DPS | 10 | 10 | 10 |
| Earnings Growth | -6.30% | 1.40% | 4.50% |
| DY | 11.50% | 11.50% | 11.50% |
| ROE | 22.20% | 19.20% | 18.00% |
Source: JS Global
With stable EPS in 2025 and 2026, it suggests a rewarding investment opportunity.
2. United Bank Limited (UBL)
UBL takes second spot based on its strong earnings growth trajectory. Its consistent dividend payments, impressive earnings track record, and improving ROE make it a great stock. Those seeking stability and growth can gain from its highest DPS in the sector.
- EPS: It is projected to grow its EPS to 60 in 2026, which is the highest among other banks.
- Earnings Growth: Earnings are expected to jump to 21% in 2025, though it will maintain its 2024 earnings level, declining to 4% again in 2026.
- Dividend Yield: A consistent dividend yield of 11.5%, which is slightly less than MEBL, is quite impressive with a DPS of Rs. 44.
- ROE: It is expected to grow by 6% in 2025 with just a slight decline in 2026.
| 2024 | 2025 | 2026 | |
|---|---|---|---|
| EPS | 47.2 | 57.3 | 60 |
| DPS | 44 | 44 | 44 |
| Earnings Growth | 4.80% | 21.40% | 4.70% |
| DY | 11.50% | 11.50% | 11.50% |
| ROE | 22.00% | 28.30% | 27.60% |
United Bank Limited (UBL) is the second most attractive stock in our list. With a dividend yield of 11.50% and almost stable ROE in 2025 and 2026, it suggests a worthy investment option. The 27.6%
1. Meezan Bank (MEBL)
Meezan Bank is one of the largest Islamic banks of Pakistan, which dominates the banking sector by delivering strong financial results. Being a leader in Islamic banking and a strong dividend payer makes it the best among other banks.
- EPS: With an expected EPS of 49.2 and 50 in 2025 and 2026 respectively, it highlights its strong earning power.
- Earnings Growth: Though it demonstrates a slight decline in earnings in 2025, earnings are projected to recover in 2026.
- Dividend Yield: A solid and consistent dividend yield of 11.6%, which is close to the interest rate, is quite attractive for investors.
- ROE: Estimates show a decline in ROE, still 30.10% in 2026 is very strong and highest among all other banks. With the highest expected ROE in 2025 and 2026, it is more profitable than its competitors.
| 2024 | 2025 | 2026 | |
|---|---|---|---|
| EPS | 52.6 | 49.2 | 50 |
| DPS | 28 | 28 | 28 |
| Earnings Growth | 10.40% | -6.30% | 1.50% |
| DY | 11.60% | 11.60% | 11.60% |
| ROE | 43.80% | 34.10% | 30.10% |
Meezan Bank (MEBL) is top on the list due to the highest dividend yield and return on equity in 2025 & 2026. Though the ROE shows a decline, but still 30% is the highest among other banks. Dividend yield of 11.6%, which is close to the interest rate, is quite attractive for investors. Dividend investment is a better option as it offers a source of regular income as well as the potential for an increase in worth.
Conclusion
It can be generally observed that both Meezan Bank and UBL offer consistent returns while the rest of the banking sector takes the back seat. Every banking stock has a unique investment angle but when it comes to safe returns, Meezan Bank is the number one investment according to analysts.
Comments (2)
Meezan Bank ROE is just wow
Please do comparison of MEBL and FABL