Meezan Bank Limited (PSX: MEBL) is preparing to introduce two Shariah-compliant card products, expanding its Islamic banking offerings with a commercial launch planned for 2027.

The bank disclosed the development during its 2026 analyst briefing, where management discussed its financial performance, business strategy, and outlook.

The two products are the Meezan Charge Card and Islamic Financing Card. Management said both products have received Shariah approval and are being developed as alternatives to conventional credit cards.

The Meezan Charge Card has already entered a soft-launch phase, with bank employees currently using it for testing and evaluation. Development work on the Islamic Financing Card is still underway.

Management expects both products to reach the wider market in 2027.

Deposits Cross Rs. 3.7 Trillion

Meezan Bank’s deposits climbed 23% year-on-year and 3% quarter-on-quarter to Rs. 3.7 trillion by June 2026, taking its share of the overall deposit market to 9.15%.

The bank said it is placing greater emphasis on building sustainable average deposit balances rather than focusing solely on balances recorded at the end of reporting periods.

CASA deposits rose 13% year-on-year in the first half of 2026, pushing the CASA mix to 91% by June 2026. Current account deposits also recorded 20% year-on-year growth.

Meezan’s branch network expanded to 1,150 outlets by June, with another 100 branches planned by the end of the year.

The bank is following a “phygital” strategy, combining its physical branch network with digital banking channels.

ADR Falls to 44%

Meezan’s advance-to-deposit ratio declined to 44% in June 2026, down from 51% at the end of December 2025.

Management attributed the reduction to seasonal factors, faster deposit growth, and relatively weak business demand for financing. It expects the ratio to recover in subsequent periods.

The bank said about 85% of its investment portfolio is placed in government Ijarah Sukuk, with roughly three-fourths of this exposure invested in variable-rate instruments.

Management said the increasing availability of Islamic investment products is creating more investment opportunities for the bank.

Profit Rises 6%

Meezan’s cost-to-income ratio increased to 30% in the first half of 2026, compared with 25% during the corresponding period last year. Management said this remains comfortably below its internal threshold of 34-35% and the industry average.

The bank is seeking to improve earnings generated by each branch while keeping expenses under control. Deposits per branch stood at approximately Rs. 3.5 billion.

Management also linked stronger foreign exchange income to higher trade activity and increased remittance flows.

On interest rates, the bank expects the State Bank of Pakistan to keep its policy rate unchanged over the next few quarters.

Meezan Bank posted Rs. 48.8 billion in profit after tax during the first half of 2026, up 6% year-on-year, with earnings per share of Rs. 27.1.

The bank declared an Rs. 8 per share dividend, bringing its total cash dividend for the first half of 2026 to Rs. 15.5 per share.