MEBL
Meezan BankLAST · PKR
52W RANGE
Source: PSX, First Asia Securities Research. Data as of 22 Jun 2026, EOD.
- Market cap
- 921bn
- P/E (ttm)
- 10.2×
- EPS (ttm)
- 50.20
- Dividend yield
- 5.9%
- Return on equity
- 34.1%
- Beta
- 0.57
- Free float
- 49%
- 52W high
- 525.00
- 52W low
- 300.05
- 1D change
- −0.16%
- YTD return
- +17.0%
The world's largest standalone Islamic bank by branches; structural deposit-cost advantage under the IFRS-compliant Shariah framework.
FAS DESK · FIRST ASIA SECURITIES RESEARCH · 23 JUN 2026 · EOD
Best-in-class franchise, fully-priced at ten times
- 01
Neutral, PKR 560 target: MEBL is the premier Islamic franchise — a 34% ROE and a structural funding edge — but at 10.2× it is the most expensive big bank, and the quality is priced.
- 02
The deposit-cost advantage under the Shariah framework keeps funding cheap as the rate cycle turns, defending spread.
- 03
Near-term NIM gives some back as the policy rate falls; CASA-led volume and fee growth limit the drag.
- 04
At ~10.5× FY26E the target is PKR 560 — modest upside; we would turn buyers on a pull-back.
| Metric | FY25A | FY26E | FY27E |
|---|---|---|---|
| Net profitPKR bn | 90.0 | 95.0 | 105.0 |
| EPSPKR | 50.2 | 53.2 | 58.5 |
| DPSPKR | 30.0 | 31.8 | 33.7 |
| P/E× | 10.2× | 9.6× | 8.8× |
| EPS growth% | — | +6.0% | +10.0% |
A = REPORTED · E = FAS ESTIMATE
Deep cuts compress NIM; multiple de-rates.
8.0× stressed EPS
Funding edge defends spread; fairly valued.
10.5× FY26E
ROE holds; premium franchise re-rates further.
11.5× FY27E
Does a 34% ROE justify 10×?
The premium to peers is excessive.
The franchise earns a premium, but at 10.2× it is fair, not cheap — hence Neutral.
A pull-back, or ROE pushing back toward the high-30s.
How much NIM does MEBL lose as rates fall?
Asset yields reprice faster than deposits.
The Shariah deposit base reprices with a lag and stays cheap; the give-back is shallower than peers.
Two quarters of >40bps NIM compression with no offset.
Is the Islamic-conversion theme played out?
Easy share gains are done.
Industry Islamic penetration is still rising; MEBL takes a disproportionate share.
Flat Islamic-banking share over a full year.
| Assumption | Value | Basis |
|---|---|---|
| FY26E EPS | PKR 53.2 | FY25 base +6% |
| Target multiple | ~10.5× FY26E | premium, broadly in line with 10.2× |
| Dividend yield | 5.9% | supports a modest total return |
| 12-month target | PKR 560 | ≈10.5 × 53.2, rounded |
- 01NIM compressionWATCH · Policy rate, quarterly NIM
- 02Valuation / premiumWATCH · Multiple vs peers
- 03Asset qualityWATCH · Infection ratio, cost of risk
- 04Sovereign / PIB durationWATCH · Investment book, yields
— GENERATED BY FIRST ASIA SECURITIES · NOT INVESTMENT ADVICE
| Symbol | Last | Chg % | P/E | M. Cap | 1Y |
|---|---|---|---|---|---|
| UBLUnited Bank | 437.46 | −0.16% | 7.7× | 1.10tn | |
| MEBLMeezan Bank— THIS PAGE | 512.17 | −0.16% | 10.2× | 921bn | |
| MCBMCB Bank | 400.10 | −0.70% | 8.3× | 474bn | |
| HBLHabib Bank | 294.98 | −1.15% | 6.5× | 430bn | |
| BAHLBank Al Habib | 170.71 | −1.53% | 6.5× | 185bn |
Source: PSX, First Asia Securities Research. Data as of 22 Jun 2026, EOD.