Meezan Bank Ltd. (MEBL) announced its 1QCY26 financial results earlier today, wherein the bank posted a profit of PkR23.4bn (EPS: PkR13.0) for the quarter, up 6%YoY/7%QoQ. The result is slightly below our expectations due to lower-than-expected Net Spread Earned. In addition to the result, the bank announced an interim cash payout of PkR7.5/sh against our expectation of PkR7.0/sh.

·        Net Spread Earned recorded at PkR61.4bn in 1QCY26, down 1%YoY/4%QoQ, as a drop in Return on Assets overshadowed the decline in Profit on Deposits.

·        Return of Islamic financing and assets decreased by 2%YoY/2%QoQ to PkR105.8bn, due to a decline in yields of investment and financing, in our view. Bank’s estimated NIMs fell to 5.6% in 1QCY26 from 7.1% in SPLY.

Full Report
https://research.akdsl.com/639125491869959562.pdf

Courtesy : AKD Research