Meezan Bank Limited has reported a healthy increase in profitability for the quarter ended March 31, 2026, with its standalone profit after taxation rising to Rs23.40 billion compared with Rs22.05 billion in the same quarter of 2025.

According to the bank’s financial results submitted to the Pakistan Stock Exchange, profit after taxation increased by approximately 6.2% year-on-year. Basic earnings per share also improved to Rs13.00 from Rs12.28, while diluted earnings per share stood at Rs12.91 compared with Rs12.22 a year earlier.

Net Profit and Income

Meezan Bank recorded net profit/return of Rs61.43 billion during the first quarter of 2026, slightly below Rs61.79 billion recorded in the corresponding period last year.

However, stronger non-funded income helped support overall earnings. Total other income increased to Rs11.15 billion from Rs8.18 billion, representing growth of around 36%. Fee and commission income rose to Rs6.95 billion from Rs5.53 billion, while foreign exchange income increased to Rs1.80 billion from Rs1.60 billion.

As a result, total income reached Rs72.58 billion during the quarter, compared with Rs69.97 billion in the same period of 2025.

Lower Credit Losses Support Earnings

One of the key positives for the bank was a substantial reduction in credit loss allowance and write-offs. The charge declined to Rs448.8 million from Rs1.86 billion in the previous year’s corresponding quarter.

This helped offset higher operating expenses, which increased to Rs22.20 billion from Rs18.61 billion. Despite the increase in expenses, Meezan Bank posted profit before taxation of Rs48.98 billion, compared with Rs48.48 billion a year earlier.

Consolidated Performance

On a consolidated basis, Meezan Bank reported profit after taxation of Rs22.40 billion for the quarter, compared with Rs22.42 billion in the same period of 2025. Profit attributable to shareholders of the holding company increased to Rs22.31 billion from Rs22.11 billion.

Consolidated basic earnings per share stood at Rs12.39, compared with Rs12.32 in the corresponding quarter last year.

Rs7.50 Per Share Interim Dividend

Alongside its financial results, Meezan Bank’s Board recommended an interim cash dividend of Rs7.50 per share, equivalent to 75%, for the quarter ended March 31, 2026. The announcement was made following the Board meeting held on April 23, 2026.

The dividend announcement reinforces the bank’s shareholder-return strategy while its latest results show continued profitability despite pressure from operating costs.

Overall, Meezan Bank entered 2026 with steady earnings growth on a standalone basis, supported particularly by stronger fee, foreign exchange and other income, as well as a significant reduction in credit loss charges. The bank’s ability to maintain profitability while continuing shareholder distributions will remain an important factor for investors during the rest of the year.