Meezan Bank Limited (PSX: MEBL), Pakistan’s leading Islamic bank, has placed a proposal for Shariah board approval for the launch of credit cards, with system configuration currently underway and a full rollout planned by CY27. The development marks a significant product expansion for the bank, which shared the update during its CY25 corporate briefing session.
Read More: Daraz Pakistan brings the heat down with its 4.4 Summer Sale
The entry into credit cards represents a major strategic move for Meezan Bank, which has traditionally focused on debit cards and other Shariah-compliant products. Once approved, the credit card offering will provide customers with additional financing options while adhering to Islamic banking principles.
Financial Performance
On the earnings front, the bank reported net profit of Rs89 billion (EPS: Rs49.5) for CY25, reflecting a 12% year-on-year decline from Rs101.5 billion (EPS: Rs56.4) recorded in CY24. Despite the earnings softness, the bank demonstrated strong deposit momentum, clocking 28% growth during the year, with management guiding a sustainable growth trajectory of 20% to 25% going forward.
| Metric | CY25 | CY24 | Change |
|---|---|---|---|
| Net Profit | Rs89bn | Rs101.5bn | -12% |
| EPS | Rs49.5 | Rs56.4 | -12% |
| Deposit Growth | +28% | – | – |
Key Ratios and Capital Position
Meezan Bank’s CASA mix remained robust at 91% , with management reaffirming its commitment to keeping the ratio above 90%. The cost-to-income ratio stood at 30.4% , with the bank targeting a near-term ceiling of 40%. Capital adequacy remained well-cushioned at 19.2% , comfortably above the regulatory minimum of 11.5%.
| Ratio | Performance | Target |
|---|---|---|
| CASA Mix | 91% | Above 90% |
| Cost-to-Income | 30.4% | Below 40% |
| Capital Adequacy | 19.2% | Regulatory min: 11.5% |
Branch Expansion
On the expansion front, the bank plans to add 100 to 150 new branches in CY26 , scaling up from its existing network of 1,105 branches. This expansion will strengthen Meezan Bank’s presence across Pakistan, bringing Islamic banking services to more communities.
Debit Card Strategy
Fee income from debit cards came in at Rs9,086 million, down from Rs9,571 million in CY24. This decline was a deliberate outcome of the bank’s strategy to aggressively push debit card adoption, which temporarily weighed on related fee revenues. The strategy aims to increase card usage and customer engagement over the long term.
Subsidiary Performance
Subsidiary Al Meezan Investment delivered a strong performance, contributing a profit after tax of Rs4.2 billion for the year, with an impressive return on equity of 76.4% , highlighting the strength of Meezan Bank’s investment management arm.
About Meezan Bank Limited
Meezan Bank Limited (PSX: MEBL) is Pakistan’s leading Islamic bank, offering a comprehensive range of Shariah-compliant banking products and services to retail, corporate, and institutional clients. With a network of over 1,100 branches across the country, Meezan Bank is at the forefront of Islamic banking in Pakistan.
About Al Meezan Investment
Al Meezan Investment is a subsidiary of Meezan Bank and one of Pakistan’s leading asset management companies, specializing in Shariah-compliant investment products and services.
