Meezan Bank Limited (PSX: MEBL) is preparing to launch two Shariah-compliant card products, the Meezan Charge Card and Islamic Financing Card, with commercial rollout expected in 2027.
The development was shared by the bank’s management during its 2026 analyst briefing, where it outlined the products and discussed the bank’s financial performance and outlook.
The new cards will differ from conventional credit cards and have already received Shariah approval.
The Meezan Charge Card is currently undergoing a soft launch. The Islamic Financing Card remains under development.
Both products are expected to be commercially launched in 2027, subject to completion of the remaining development and rollout process.
Deposits Rise to Rs. 3.7 Trillion
Meezan Bank’s deposits increased 23 percent year-on-year and 3 percent quarter-on-quarter to Rs. 3.7 trillion in June 2026, lifting its deposit market share to 9.15 percent.
Management said the bank continues to focus on building average deposit balances rather than relying primarily on period-end figures.
CASA deposits grew 13 percent year-on-year during the first half of 2026, taking the CASA ratio to 91 percent in June 2026, while current accounts increased 20 percent year-on-year.
The bank had 1,150 branches by June 2026 and plans to add another 100 branches by the end of the year.
Management said Meezan is pursuing a “phygital” banking model that combines physical branches with digital services, noting that relying exclusively on either model has limitations.
ADR Declines as Deposits Grow
Meezan Bank’s advances-to-deposits ratio (ADR) fell to 44 percent in June 2026, compared with 51 percent in December 2025.
Management attributed the decline partly to seasonal factors and stronger deposit growth, as well as relatively subdued demand from businesses. However, it expects the ADR to improve in the coming periods.
Around 85 percent of the bank’s investment portfolio is invested in government-issued Ijarah Sukuk, with approximately 75 percent of that exposure in variable-rate instruments and the remainder in fixed-rate Sukuk.
Management noted that the growing supply of Shariah-compliant investment instruments is providing additional opportunities for the bank.
Cost Ratio Remains Below Industry Average
The bank’s cost-to-income ratio rose to 30 percent in the first half of 2026, compared with 25 percent in the same period last year.
Management said its target threshold is 34-35 percent, which remains below the industry average. The bank is also focused on improving earnings per branch while maintaining strict cost controls.
Meezan’s deposits per branch stood at around Rs. 3.5 billion.
Higher foreign exchange income was attributed to increased trade activity and stronger remittance inflows, which management said had risen significantly.
SBP Rate Seen Stable
On monetary policy, Meezan Bank’s management expects the State Bank of Pakistan to maintain the current policy rate over the next few quarters.
The bank reported profit after tax of Rs. 48.8 billion, or earnings per share of Rs. 27.1, for the first half of 2026, representing 6 percent year-on-year growth.
It also announced a cash dividend of Rs. 8 per share, taking the total dividend for the first half of 2026 to Rs. 15.5 per share.
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