Shams ul Nisa

The Meezan Bank Limited crossed the Rs4 trillion asset mark by March 2025, reflecting strong growth driven by economic recovery and rising digital inflows, reports WealthPK.

During the review period, the banks’ investments grew to Rs2.05 trillion, supported by regular Sukuk auctions that improved liquidity for the Islamic banking sector. Furthermore, the bank continued to lead in digital banking, attracting over USD 2.75 billion in Roshan Digital Account inflows from more than 127,000 overseas Pakistanis.

Despite a 12% drop in profit after tax to Rs22 billion due to lower interest rates and a higher tax burden, Meezan maintained a strong return on equity of 36.2% and a capital adequacy ratio above 20%, highlighting its financial strength and prudent risk management. Meezan Bank’s recent performance has been bolstered by Pakistan’s economic recovery, marked by a return to GDP growth, improved industrial and agricultural output, and easing inflation.

Additionally, the sharp drop in inflation prompted the central bank to significantly lower interest rates, creating a more favorable environment for private sector credit, investment, and consumption. Investor confidence has also grown, as evidenced by record highs on the Pakistan Stock Exchange and a surge in workers’ remittances, which have supported external stability and sustained economic momentum.

Meezan Bank’s digital strategy remained a key growth driver in 1QCY25, with strong performance in Roshan Digital Accounts, a 16% rise in debit cards, and a 35% increase in card spending. The bank expanded its presence to over 1,000 branches and 1,200 ATMs, while fee and commission income grew 29% to Rs8.2 billion. Operational efficiency also improved, with the cost-to-income ratio reduced to 28%.

Meezan Bank’s expanding assets and digital presence are driving financial inclusion and supporting underserved communities across Pakistan. Its leadership in Islamic finance aligns with national goals for a Shariah-compliant system, while strong credit ratings, steady dividends, and a $1.58 billion market capitalization highlight investor confidence and the bank’s stable growth outlook.

Hence, Meezan Bank is pursuing balanced growth through sector diversification, digital expansion, and regulatory strength, while aligning with national goals of Islamic finance and financial inclusion. Pakistan’s economy is gradually recovering from the challenges, thanks to sound policies and renewed investor confidence. As a result, the bank is well-positioned to navigate global challenges and play a leading role in Pakistan’s financial future, backed by strong risk management and a clear strategy.

Credit: INP-WealthPk