{"id":11308,"date":"2025-08-21T10:53:52","date_gmt":"2025-08-21T05:53:52","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=11308"},"modified":"2025-08-21T10:53:54","modified_gmt":"2025-08-21T05:53:54","slug":"meezan-bank-limiteds-mebl-half-year-2025-performance-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/meezan-bank-limiteds-mebl-half-year-2025-performance-what-you-need-to-know\/","title":{"rendered":"Meezan Bank Limited\u2019s (MEBL) Half-Year 2025 Performance: What You Need to Know?"},"content":{"rendered":"\n

Meezan Bank Limited (MEBL<\/a>),<\/strong> Pakistan\u2019s largest Islamic bank, recently shared its financial performance for the first half of 2025 (1HCY25). Let\u2019s break it down in simple terms for anyone who is not from a finance background but wants to understand what\u2019s happening.<\/p>\n\n\n\n

Profits take a dip<\/h2>\n\n\n\n

Meezan Bank reported a profit of PKR 46.2 billion<\/strong> in the first six months of 2025. While this is still a huge number, it\u2019s actually 10% lower than the same period last year<\/strong>. The decline primarily occurred because the bank earned less on its financings and investments due to lower interest rates (yields) and also had to set aside funds as provisions.<\/p>\n\n\n\n

Strong deposit growth<\/h2>\n\n\n\n

On the positive side, deposits at the bank grew by 26% year-on-year<\/strong> to reach PKR 3 trillion<\/strong>. Even more impressive is that 94% of these deposits are in current and savings accounts (CASA)<\/strong>. This is important because it keeps the bank\u2019s funding costs low, making it more efficient.<\/p>\n\n\n\n

Financing & investments<\/h2>\n\n\n\n
    \n
  • The bank\u2019s lending (financing) grew only slightly by 3%<\/strong>, as private businesses borrowed less due to a slow economy.<\/li>\n\n\n\n
  • On the other hand, investments jumped to PKR 2.4 trillion<\/strong> (from PKR 1.6 trillion last year), mostly in government Islamic bonds (Sukuk). This is a safe and steady income source for the bank.<\/li>\n<\/ul>\n\n\n\n

    Expenses under control<\/h2>\n\n\n\n

    Meezan Bank kept its costs in check. Operating expenses went down by 17%<\/strong>, partly because of a one-time adjustment in staff compensation. This pushed the cost-to-income ratio<\/strong> down to 25.6%<\/strong>, which means the bank is very efficient compared to many others.<\/p>\n\n\n\n

    Asset quality, some pressure<\/h2>\n\n\n\n

    Not everything was rosy. The ratio of non-performing loans (bad loans) went up from 1.5% to 2.5%<\/strong>, mainly because of stress in the textile sector (linked to US tariffs). Still, the bank has enough coverage (149%) to absorb these risks.<\/p>\n\n\n\n

    Other highlights<\/h2>\n\n\n\n
      \n
    • Digital Banking:<\/strong> Internet and mobile banking transactions hit PKR 12.5 trillion<\/strong>, making up 72% of the bank\u2019s total digital activity.<\/li>\n\n\n\n
    • Branches:<\/strong> The bank added 6 new branches, bringing the total to 1,057. It plans to cross 1,100 by year-end.<\/li>\n\n\n\n
    • Trade Business:<\/strong> The bank handled PKR 819bn in imports<\/strong> and PKR 547bn in exports<\/strong>, with a healthy 10.2% market share.<\/li>\n\n\n\n
    • Subsidiary:<\/strong> Al Meezan Investment contributed a profit of PKR 1.5bn<\/strong>, with a high return on equity of 56.5%.<\/li>\n<\/ul>\n\n\n\n

      What does it mean for investors?<\/h2>\n\n\n\n

      Meezan Bank remains a strong player in Pakistan\u2019s banking sector. Despite slightly lower profits, the bank\u2019s huge deposit base, strong focus on Islamic finance, digital growth, and efficient cost management<\/strong> keep it in a solid position.<\/p>\n\n\n\n

      The management also aims to keep dividends stable, using past profits to support payouts even when earnings dip. For long-term investors, MEBL continues to be a bank worth watching.<\/p>\n\n\n\n

      Source: AKD Securities <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

      Meezan Bank Limited (MEBL), Pakistan\u2019s largest Islamic bank, recently shared its financial performance for the first half of 2025 (1HCY25). Let\u2019s break it down in simple terms for anyone who is not from a finance background but wants to understand what\u2019s happening.<\/p>\n","protected":false},"author":9252,"featured_media":6909,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,155],"tags":[28],"class_list":["post-11308","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-fundamental-analysis","tag-mebl"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MEBL-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MEBL-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MEBL-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MEBL-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11308","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=11308"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11308\/revisions"}],"predecessor-version":[{"id":11309,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11308\/revisions\/11309"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6909"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=11308"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=11308"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=11308"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}