Is Meezan Bank Safe? — Depositor Confidence Scorecard

Every financial data site shows Meezan's ratios as raw numbers with no context — a P/E of 11.78, a CAR of 19.2%, an ROE of 34%. None of them tell you what those numbers actually mean for your deposits, or how Meezan stacks up against Pakistan's banking sector as a whole. This does — using Meezan's own FY2025 disclosures against SBP's regulatory minimums and a 22-bank industry benchmark that includes Meezan itself.

This is a scorecard, not a calculator — nothing here depends on user input, so there's nothing to enter. Just scroll and read.

The Short Version

On every metric where a clear benchmark exists, Meezan's FY2025 numbers sit meaningfully above both the regulatory minimum and the industry average.

All Metrics at a Glance

Metric	Meezan (FY2025)	Benchmark	Benchmark Type
Capital Adequacy Ratio (CAR)	19.2%	11.5%	SBP regulatory minimum
Non-Performing Financing (NPF) ratio	1.8%	5.7%	22-bank industry average
Return on Equity (ROE)	34%	19.6%	22-bank industry average
Return on Assets (ROA)	≈1.86%	1.20%	22-bank industry average
Advances-to-Deposits Ratio (ADR)	≈51.2%	40.3%	22-bank industry average (context, not a verdict — see below)

Sources for every figure are detailed under each metric below and in the Sources section at the bottom of this page.

Capital Strength

Well Above Minimum

Capital Adequacy Ratio (CAR) — the cushion of the bank's own capital against losses before depositors are ever at risk.

Meezan (FY2025)

19.2%

SBP minimum

11.5%

CAR measures how much of the bank's own money (not depositors' money) stands behind its loans and investments as a loss-absorbing cushion. SBP requires every bank to hold at least 11.5% — both Meezan's own FY2025 results and the industry-wide KPMG report confirm this is the current regulatory floor. Meezan's 19.2% means it's carrying roughly 1.7x the required cushion — the kind of margin that gives a bank room to absorb a bad year without threatening deposits.

Meezan CAR: as disclosed in FY2025 results. SBP minimum: independently confirmed by both Meezan's own press releases and KPMG's Pakistan Banking Perspective 2026 (based on FY2025 industry data).

Asset Quality

Well Below Industry Average

Non-Performing Financing (NPF) ratio — the share of loans that have gone bad. Lower is better here.

Meezan (FY2025)

1.8%

Industry avg.

5.7%

This ratio measures what share of the bank's total financing has gone bad — borrowers who've stopped paying. A lower number is healthier; a rising one is an early warning sign for any bank's balance sheet. Meezan's 1.8% compares to a 22-bank industry average of 5.7% for FY2025 (KPMG Pakistan Banking Perspective 2026) — roughly a third of the sector-wide rate.

Meezan NPF: as disclosed in FY2025 results. Industry average: KPMG Pakistan Banking Perspective 2026 (22-bank sample including Meezan, based on FY2025 audited accounts).

Profitability

Above Industry Average

Return on Equity (ROE) and Return on Assets (ROA) — how efficiently the bank turns capital and assets into profit.

Meezan ROE

34%

Industry ROE avg.

19.6%

Meezan ROA

≈1.86%

Industry ROA avg.

1.20%

A more profitable bank retains more capital internally — which, over time, reinforces the capital-strength cushion above without needing to raise money from outside. Meezan's 34% ROE and ≈1.86% ROA for FY2025 both run well ahead of the 22-bank industry averages of 19.6% and 1.20% (KPMG, FY2025 data). Worth knowing: high profitability alone doesn't guarantee safety — it matters alongside the capital and asset-quality figures above, not instead of them.

Meezan ROE: as disclosed FY2025. Meezan ROA: PakFinHub calc from disclosed figures (see Financial Results page). Industry averages: KPMG Pakistan Banking Perspective 2026.

Lending vs. Deposits

Context, Not a Verdict

Advances-to-Deposits Ratio (ADR) — how much of deposited money the bank lends out versus keeps liquid or invests in government securities.

Meezan (FY2025)

≈51.2%

Industry avg.

40.3%

Unlike the other three metrics, there's no simple "higher is safer" or "lower is safer" read here — it reflects business strategy, not just risk. A higher ADR means more of your deposits are out as active financing (car Ijarah, home financing, business lending) rather than parked in government securities; that's a different risk/reward mix, not automatically worse. Meezan's ≈51.2% sits above the 40.3% industry average — reflecting a Pakistani banking sector that, per KPMG, is unusually conservative in private-sector lending compared to global peers (Europe's ADR runs over 100%, China's over 95%).

Meezan ADR: PakFinHub calc from disclosed figures (see Financial Results page). Industry average: KPMG Pakistan Banking Perspective 2026.

"Capital adequacy gets all the attention, but for a depositor, asset quality is the number I'd watch first. A bank can look strong on paper with a thin capital cushion if its loan book is genuinely clean — and Meezan's infection ratio here is doing a lot of the quiet work."
— Dildar Hussain, PakFinHub banking analyst, 10+ years in Pakistani banking

Sources

Meezan's own FY2025 figures (CAR, NPF, ROE, and the underlying figures behind the PakFinHub-calculated ROA and ADR) are sourced from Meezan Bank's official FY2025 results announcement — see the full breakdown and formulas on our Financial Results page.

The 11.5% SBP capital adequacy minimum is confirmed independently in two places: Meezan's own official FY2025 and Q1 2025 results press releases ("...well above the regulatory requirement of 11.5%"), and KPMG's Pakistan Banking Perspective 2026 ("...significantly above the regulatory minimum of 11.5 percent").

Industry averages (NPF/infection ratio 5.7%, ROE 19.6%, ROA 1.20%, ADR 40.3%, all for FY2025) are from KPMG Taseer Hadi & Co.'s Pakistan Banking Perspective 2026 (published April 2026), based on audited FY2025 financial statements of 22 leading commercial banks in Pakistan — a sample that includes Meezan itself, making this a genuine peer comparison rather than a mismatched benchmark.

Last verified: August 26, 2026. These are FY2025 year-end figures; more recent quarters (see our Financial Results page) may show different numbers — this scorecard will be refreshed when FY2026 industry-wide data becomes available.

Independent analysis — not an official Meezan Bank or KPMG publication. PakFinHub is not affiliated with Meezan Bank or KPMG. This is not financial or investment advice; past performance and current ratios are not guarantees of future safety.