Arif Habib Limited reported that Meezan Bank Limited achieved a profit after tax of Rs. 73.94 billion for the nine months ending September 2026, marking a 7 percent rise from Rs. 69.33 billion during the previous year.

Earnings per share climbed to Rs. 41.07, up from Rs. 38.50 in the prior year timeframe. During the third quarter of 2026, profit after tax went up 14 percent year over year to reach Rs. 25.85 billion, alongside a quarterly earnings per share increase to Rs. 14.36 from Rs. 12.62.

A dividend payout of Rs. 8 per share was declared for the third quarter, keeping the distribution steady. Total dividends for the initial nine months of 2026 hit Rs. 23.50 per share, compared to Rs. 21 per share in the same timeframe last year.

During the first nine months, net profit before tax touched Rs. 157.83 billion, showing a 3 percent year over year growth. Net interest income went up 5 percent to reach Rs. 197.72 billion, while overall income expanded 7 percent to Rs. 233.81 billion.

Non-funded income stayed mostly unchanged near Rs. 12 billion, backed by fee income of Rs. 8.2 billion, which grew 6 percent, whereas foreign exchange income dropped 12 percent to Rs. 2.8 billion.

Deposits and Advances Support Balance Sheet Growth

Year over year deposits for Meezan Bank grew 24 percent to Rs. 3.93 trillion, and net advances climbed 42 percent to Rs. 1.61 trillion. Investments rose 21 percent to Rs. 3.04 trillion, while borrowings increased 67 percent to Rs. 835.15 billion.

Operating expenses for the third quarter went up 20 percent quarter over quarter to Rs. 28 billion, while staying mostly stable annually. The report noted that the bank improved its cost-to-income ratio to approximately 35 percent, down from 38 percent in the third quarter of 2025.

The institution booked a provisioning reversal of Rs. 2.5 billion in the quarter. The effective tax rate sat at roughly 52 percent for the quarter, compared to 55 percent in the second quarter of 2026.

MEBL shares currently trade at a price-to-book ratio of 3.1 times, accompanied by a projected dividend yield of 5.8 percent for the calendar year 2026.