External broker reports(aggregated public sources), Topline Securities

Topline Securities

External broker reports(aggregated public sources)

Topline Securities is one of the fastest growing brokerage houses in Pakistan. It has strong equity brokerage, economic / equity research, mutual fund distribution, commodity trading and corporate finance & advisory functions. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>Meezan Bank (MEBL) announced its 3Q2025 result today, where the bank recorded earnings of Rs21bn (EPS of Rs11.7), which is down 18% YoY and 13% QoQ. The earnings came lower than industry expectations primarily due to higher-than-expected operating expenses.</li><li>Alongside the result, the bank also announced third interim cash dividend of Rs7.0/share in 3Q2025, in-line with industry expectations, taking 9M2025 dividend to Rs21.0/share.</li><li>Operating expenses of the Bank increased by 13% YoY and 58% QoQ to Rs26.4bn in 3Q2025 due to normalization of expenses — as the previous quarter included some reversals, according to our channel checks, resulting in a cost-to-income ratio of 35% vs. 26% in SPLY.</li></ul>

Meezan Bank (MEBL) announced its 3Q2025 result today, where the bank recorded earnings of Rs21bn (EPS of Rs11.7), which is down 18% YoY and 13% QoQ. The earnings came lower than industry expectations primarily due to higher-than-expected operating expenses.Alongside the result, the bank also announced third interim cash dividend of Rs7.0/share in 3Q2025, in-line with industry expectations, taking 9M2025 dividend to Rs21.0/share.Operating expenses of the Bank increased by 13% YoY and 58% QoQ to Rs26.4bn in 3Q2025 due to normalization of expenses — as the previous quarter included some reversals, according to our channel checks, resulting in a cost-to-income ratio of 35% vs. 26% in SPLY.

Meezan Bank (MEBL): 3Q2025 EPS at Rs11.7, Down 18% YoY and 13% QoQ

Thematic (Sector/Industry)

<ul><li>Topline Banking Universe is likely to post an earnings decline of 9% YoY in 1Q2026, primarily due to a higher operating expenses coupled with provision charge in 1Q2026 vs. reversal recorded in SPLY.</li><li>Profit before tax of the sector is likely to decline by 11% YoY due to aforementioned reasons, while on a QoQ basis, PBT is expected to remain flat, as higher provision charges are likely to be offset by a decline in operating expenses.</li><li>Net interest income (NII) for banks in the universe is expected to grow by 3% YoY to Rs329bn, supported by volumetric expansion. On a QoQ basis, however, NII is likely to decline by 1% due to the policy rate cut at the end of Dec-25.</li></ul>

Topline Banking Universe is likely to post an earnings decline of 9% YoY in 1Q2026, primarily due to a higher operating expenses coupled with provision charge in 1Q2026 vs. reversal recorded in SPLY.Profit before tax of the sector is likely to decline by 11% YoY due to aforementioned reasons, while on a QoQ basis, PBT is expected to remain flat, as higher provision charges are likely to be offset by a decline in operating expenses.Net interest income (NII) for banks in the universe is expected to grow by 3% YoY to Rs329bn, supported by volumetric expansion. On a QoQ basis, however, NII is likely to decline by 1% due to the policy rate cut at the end of Dec-25.

Pakistan Banks: Earnings To Decrease 9% YoY In 1Q2026; Led By Higher Operating Expenses And Provision Charge

Cross Asset Strategy

<ul><li>KSE-100 index companies posted earnings of Rs456bn in 2QFY26, up 3% YoY from Rs443bn in 2QFY25.</li><li>The banking sector’s earnings declined by 3% YoY and 9% QoQ to Rs148.9bn in 2QFY26.</li><li>The food and personal care sector recorded a 3.6x YoY increase in profitability to Rs28.6bn, driven by one-off gains recognized by National Foods (NATF) from the sale of stake in its subsidiary.</li></ul>

KSE-100 index companies posted earnings of Rs456bn in 2QFY26, up 3% YoY from Rs443bn in 2QFY25.The banking sector’s earnings declined by 3% YoY and 9% QoQ to Rs148.9bn in 2QFY26.The food and personal care sector recorded a 3.6x YoY increase in profitability to Rs28.6bn, driven by one-off gains recognized by National Foods (NATF) from the sale of stake in its subsidiary.

Pakistan Strategy - Corporate Profitability In 2QFY26; Earnings Up 3%, While Dividends Grew By 12% YoY

<ul><li>Meezan Bank (MEBL) conducted its 2Q2025 Corporate Briefing Session today where management discuss financial performance and future outlook.</li><li>On deposit side, management commented that, the average deposits in Meezan were largely equal to the quarter end (2Q – Jun 2025) and presently deposits are standing well above Rs3trn.</li><li>We maintain BUY stance on bank as it currently trades at 2025E PE of 9.0x and PBV of 2.7x with dividend yield of 7%.</li></ul>

Meezan Bank (MEBL) conducted its 2Q2025 Corporate Briefing Session today where management discuss financial performance and future outlook.On deposit side, management commented that, the average deposits in Meezan were largely equal to the quarter end (2Q – Jun 2025) and presently deposits are standing well above Rs3trn.We maintain BUY stance on bank as it currently trades at 2025E PE of 9.0x and PBV of 2.7x with dividend yield of 7%.

Topline Flash Note: MEEZAN BANK (MEBL): Corporate Briefing Key Takeaways

<ul><li>Meezan Bank (MEBL) announced its 2Q2025 result today, where the bank recorded earnings of Rs24bn (EPS of Rs13.4), which is down 10% YoY while up 9% QoQ.</li><li>Alongside the result, the bank also announced second interim cash dividend of Rs7.0/share in 2Q2025, in-line with industry expectations, taking 1H2025 dividend to Rs14.0/share.</li><li>MEBL remains our preferred pick in the banking sector. The stock currently trades at an 2025E PE of 8.1x and PBV of 2.4x with dividend yield of 7%.</li></ul>

Meezan Bank (MEBL) announced its 2Q2025 result today, where the bank recorded earnings of Rs24bn (EPS of Rs13.4), which is down 10% YoY while up 9% QoQ.Alongside the result, the bank also announced second interim cash dividend of Rs7.0/share in 2Q2025, in-line with industry expectations, taking 1H2025 dividend to Rs14.0/share.MEBL remains our preferred pick in the banking sector. The stock currently trades at an 2025E PE of 8.1x and PBV of 2.4x with dividend yield of 7%.

Meezan Bank (MEBL) 2Q2025 EPS At Rs13.4, Down 10% YoY, Up 9% QoQ

Pakistan

Meezan Bank Limited is a commercial bank dedicated to Islamic banking.  The bank provides a range of deposit products, loans, and other products through offices located throughout Pakistan.

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Meezan Bank (MEBL PA)

Meezan Bank (MEBL): 3Q2025 EPS at Rs11.7, Down 18% YoY and 13% QoQ

Meezan Bank (MEBL) announced its 3Q2025 result today, where the bank recorded earnings of Rs21bn (EPS of Rs11.7), which is down 18% YoY and 13%...

Topline Securities

Pakistan Banks: Earnings To Decrease 9% YoY In 1Q2026; Led By Higher Operating Expenses And Provision Charge

Topline Banking Universe is likely to post an earnings decline of 9% YoY in 1Q2026, primarily due to a higher operating expenses coupled with...

Topline Securities

Pakistan Strategy - Corporate Profitability In 2QFY26; Earnings Up 3%, While Dividends Grew By 12% YoY

KSE-100 index companies posted earnings of Rs456bn in 2QFY26, up 3% YoY from Rs443bn in 2QFY25. The banking sector’s earnings declined by 3% YoY...

Topline Securities

Topline Flash Note: MEEZAN BANK (MEBL): Corporate Briefing Key Takeaways

Meezan Bank (MEBL) conducted its 2Q2025 Corporate Briefing Session today where management discuss financial performance and future outlook. On...

Topline Securities

Meezan Bank (MEBL) 2Q2025 EPS At Rs13.4, Down 10% YoY, Up 9% QoQ

Meezan Bank (MEBL) announced its 2Q2025 result today, where the bank recorded earnings of Rs24bn (EPS of Rs13.4), which is down 10% YoY while up...

Topline Securities

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