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>We have revised our earnings estimates for Meezan Bank (MEBL) upward by 20-25% for 2025 and 2026 based on the incorporation of 1Q2025 results.</li><li>MEBL's 1Q2025 results exceeded expectations due to higher-than-expected Net Interest Income (NII) and lower-than-expected admin expenses.</li><li>We maintain our BUY stance on MEBL, with a revised target price of Rs460/share, reflecting a total upside of 41% including a dividend yield of 8%.</li></ul>

We have revised our earnings estimates for Meezan Bank (MEBL) upward by 20-25% for 2025 and 2026 based on the incorporation of 1Q2025 results.MEBL's 1Q2025 results exceeded expectations due to higher-than-expected Net Interest Income (NII) and lower-than-expected admin expenses.We maintain our BUY stance on MEBL, with a revised target price of Rs460/share, reflecting a total upside of 41% including a dividend yield of 8%.

Meezan Bank Limited (MEBL) - Earnings Revised Up; Buy Maintained

Thematic (Sector/Industry)

<ul><li>Pakistan's listed banks profitability clocked in at Rs160bn, up by 3% YoY but down 6% QoQ in 4Q2025.</li><li>Despite the decline in interest rates, the sector's NII clocked in at Rs532bn, up 2% YoY led by volumetric growth and favourable repricing impact.</li><li>In 2025, the profitability of banks increased by 11% YoY to Rs666bn, mainly driven by a 12% growth in NII to Rs2.1trn and reversal in banks vs. provision charge recorded during 2024.</li></ul>

Pakistan's listed banks profitability clocked in at Rs160bn, up by 3% YoY but down 6% QoQ in 4Q2025.Despite the decline in interest rates, the sector's NII clocked in at Rs532bn, up 2% YoY led by volumetric growth and favourable repricing impact.In 2025, the profitability of banks increased by 11% YoY to Rs666bn, mainly driven by a 12% growth in NII to Rs2.1trn and reversal in banks vs. provision charge recorded during 2024.

Pakistan Banks: Listed Banks Profitability up 3% YoY but Fall 6% QoQ in 4Q2025; Profits up 11% YoY in 2025

<ul><li>Topline Banking Universe is likely to post an earnings increase of 19% YoY in 4Q2025, primarily due to a lower effective tax rate (ETR) in 4Q2025 vs. higher taxation recorded in the SPLY.</li><li>Profit before tax of the sector is likely to increase by 5% YoY, mainly driven by higher Net Interest Income (NII).</li><li>On a QoQ basis, despite the decline in the policy rate, profit before tax earnings in the banking universe are expected to increase by 2%, driven by a favourable asset repricing gap, volumetric growth, and lower provision expense.</li></ul>

Topline Banking Universe is likely to post an earnings increase of 19% YoY in 4Q2025, primarily due to a lower effective tax rate (ETR) in 4Q2025 vs. higher taxation recorded in the SPLY.Profit before tax of the sector is likely to increase by 5% YoY, mainly driven by higher Net Interest Income (NII).On a QoQ basis, despite the decline in the policy rate, profit before tax earnings in the banking universe are expected to increase by 2%, driven by a favourable asset repricing gap, volumetric growth, and lower provision expense.

Pakistan Banks: Earnings To Increase 19% YoY And 2% QoQ In 4Q2025; Market Weight Stance Maintained

<ul><li>KSE-100 index companies posted earnings of Rs458bn in 1QFY26, up 13% YoY from Rs407bn in 1QFY25. In US dollar terms, profitability stood at US$1.6bn.</li><li>Despite a decline in interest rates, the banking sector’s earnings increased by 7% YoY to Rs164bn in 1QFY26.</li><li>The E&P sector posted a 7% YoY and 4% QoQ decline in profitability during 1QFY26 to Rs79.8bn.</li></ul>

KSE-100 index companies posted earnings of Rs458bn in 1QFY26, up 13% YoY from Rs407bn in 1QFY25. In US dollar terms, profitability stood at US$1.6bn.Despite a decline in interest rates, the banking sector’s earnings increased by 7% YoY to Rs164bn in 1QFY26.The E&P sector posted a 7% YoY and 4% QoQ decline in profitability during 1QFY26 to Rs79.8bn.

Pakistan Strategy – Corporate Profitability in 1QFY26; Earnings Rose 13% YoY, With Dividends Up 22%

<ul><li>KSE-100 index companies posted earnings of Rs445bn in 4QFY25, up 21% YoY from Rs366bn in 4QFY24.</li><li>Despite the decline in interest rates, the banking sector's earnings increased by 24% YoY to Rs160bn in 4QFY25.</li><li>The E&P sector posted a 6% YoY decline in profitability during 4QFY25 to Rs83bn.</li></ul>

KSE-100 index companies posted earnings of Rs445bn in 4QFY25, up 21% YoY from Rs366bn in 4QFY24.Despite the decline in interest rates, the banking sector's earnings increased by 24% YoY to Rs160bn in 4QFY25.The E&P sector posted a 6% YoY decline in profitability during 4QFY25 to Rs83bn.

Pakistan Strategy – Corporate Profitability In 4QFY25; Earnings Up 21%, While Dividends Grew By 7% YoY

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 Limited (MEBL) - Earnings Revised Up; Buy Maintained

We have revised our earnings estimates for Meezan Bank (MEBL) upward by 20-25% for 2025 and 2026 based on the incorporation of 1Q2025...

Topline Securities

Pakistan Banks: Listed Banks Profitability up 3% YoY but Fall 6% QoQ in 4Q2025; Profits up 11% YoY in 2025

Pakistan's listed banks profitability clocked in at Rs160bn, up by 3% YoY but down 6% QoQ in 4Q2025. Despite the decline in interest rates, the...

Topline Securities

Pakistan Banks: Earnings To Increase 19% YoY And 2% QoQ In 4Q2025; Market Weight Stance Maintained

Topline Banking Universe is likely to post an earnings increase of 19% YoY in 4Q2025, primarily due to a lower effective tax rate (ETR) in 4Q2025...

Topline Securities

Pakistan Strategy – Corporate Profitability in 1QFY26; Earnings Rose 13% YoY, With Dividends Up 22%

KSE-100 index companies posted earnings of Rs458bn in 1QFY26, up 13% YoY from Rs407bn in 1QFY25. In US dollar terms, profitability stood at...

Topline Securities

Pakistan Strategy – Corporate Profitability In 4QFY25; Earnings Up 21%, While Dividends Grew By 7% YoY

KSE-100 index companies posted earnings of Rs445bn in 4QFY25, up 21% YoY from Rs366bn in 4QFY24. Despite the decline in interest rates, the...

Topline Securities

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