FIRST ASIA SECURITIES
PakistanSri LankaPREV
EquitiesFixed Income
DATA AS OF 13 JUL 2026 · EOD

MEBL

Meezan Bank
BANKS

LAST · PKR

547.08
−10.62 ▼ −1.90%
P/E 10.2× · YIELD 5.9% · ROE 34.1%

52W RANGE

328.92566.77
92% OF RANGE · YTD +24.9%
01 / MEBL — 1 YearAS OF 13 JUL 2026 · EOD
PERIOD 1Y · 250 SESSIONS▲
The Call
NEUTRAL+2%
560.00PKR · 12-MO
10.5× FY26E

Funding edge defends spread; fairly valued.

Risks to our view
02 /

FAS DESK · FIRST ASIA SECURITIES RESEARCH · 23 JUN 2026 · EOD

Best-in-class franchise, fully-priced at ten times

  1. 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.

  2. 02

    The deposit-cost advantage under the Shariah framework keeps funding cheap as the rate cycle turns, defending spread.

  3. 03

    Near-term NIM gives some back as the policy rate falls; CASA-led volume and fee growth limit the drag.

  4. 04

    At ~10.5× FY26E the target is PKR 560 — modest upside; we would turn buyers on a pull-back.

Where we differ from the street
Street viewOur viewWe change our mind if
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.
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.
Easy share gains are done.Industry Islamic penetration is still rising; MEBL takes a disproportionate share.Flat Islamic-banking share over a full year.

— FIRST ASIA SECURITIES RESEARCH · NOT INVESTMENT ADVICE