Karachi: Meezan Bank Limited (MEBL) unveiled robust financial performance indicators during its fourth quarter 2025 Corporate Briefing Session, highlighting significant deposit growth and strategic expansion plans.

According to JS Global, the bank reported a 28% year-over-year increase in deposits, reaching Rs3.3 billion by December 2025. While the current account ratio was maintained at 48%, absolute growth in current accounts was Rs361 billion for the year. CASA deposits witnessed a 25% year-over-year growth, with the CASA mix slightly adjusting to 91% compared to 93% the previous year. Additionally, term deposits rose by 9%, mainly due to shifts from high-cost State Bank borrowings to more lucrative Sukuks investments.

The bank's market share in total industry deposits remained at 9%, with a compound annual growth rate of 33% since its inception. Management projects deposit growth to stabilize between 20% and 25% in 2026, aiming for a current account mix of 50%.

In terms of physical expansion, Meezan Bank inaugurated 54 new branches in 2025, increasing its total to 1,105 branches. The bank plans to open an additional 125 to 150 branches in the coming year.

The investment portfolio of Meezan Bank is largely dominated by GoP Ijarah Sukuk, comprising 83% of its holdings, with 73% in variable Sukuk. Fixed Sukuk is yielding 11.4% with a maturity of 2.4 years. The cost-to-income ratio for 2025 was reported at 30.4%, compared to 26.8% in 2024. The management anticipates this ratio to hover between 35% and 40% in 2026.

The bank's Capital Adequacy Ratio stood at 19.20% in December 2025, down from 20.35% the previous year, but still significantly above the regulatory requirement of 11.5%. The decline is attributed to increased credit portfolios, reclassification of investment books, and payment of Tier II Sukuk.

In trade, the bank recorded an 8% increase in business volume, with a total trade value of Rs2.9 trillion, of which exports accounted for 38%. The bank plans to continue its Rs7 per share quarterly dividend throughout the year.

Meezan Bank's strategic focus on growth and stability continues to appeal to investors, maintaining a ‘BUY’ stance as it trades at a projected 2026 price-to-earnings ratio of 9.2x and a price-to-book value of 2.5x, with a dividend yield of 6%.