Press Release
VIS Reaffirms Entity Ratings of Meezan Bank Limited
Karachi, June 30, 2026: VIS Credit Rating Company Limited has reaffirmed the entity ratings of Meezan Bank Limited (‘MEBL’ or the ‘Bank’) at ‘AAA/A1+’ (Triple A/A One Plus). Medium to long term rating of ‘AAA' indicates highest credit quality; the risk factors are negligible, being only slightly more than for risk-free Government of Pakistan’s debt. Short-term rating of ‘A1+’ denotes strongest likelihood of timely repayment of short-term obligations with outstanding liquidity factors. Outlook on the assigned ratings is ‘Stable.’ The rating of MBL’s Basel 3 Compliant Additional Tier-1 Instrument (Sukuk 2) and Tier-2 Instrument (Sukuk 4) have been reaffirmed at ‘AA+’ (Double A Plus) and ‘AAA’ (Triple A) respectively. Previous rating action was announced on June 30, 2025.
MEBL was incorporated in Pakistan on January 27, 1997, as a public limited company under the Companies Act, 2017 (previously Companies Ordinance, 1984), and its shares are quoted on the Pakistan Stock Exchange Limited (PSX). The Bank was registered as ‘Al-Meezan Investment Finance Company Limited’ on August 8, 1997 and carried on the business of investment banking in accordance with the principles of Islamic Shariah. A ‘Certificate of Commencement of Business' was issued to the Bank on September 29, 1997.
The Bank converted to Meezan Bank Limited, a full-fledged Islamic commercial bank in 2002, when the SBP issued Pakistan’s first Islamic Commercial Banking license to the Bank. Concurrently, the Bank acquired the Pakistan operations of Societe Generale, and started commercial banking with a small network of 4 branches. As of Mar’26, the Bank was operating with a network of 1,115 (Dec’25: 1,105; Dec’24: 1051) branches situated across 365 cities of Pakistan.
The ratings reflect MEBL leading franchise in Pakistan’s Islamic banking industry, supported by a strong market position, extensive nationwide branch network, and sustained growth in its deposit and financing portfolios. The Bank benefits from a diversified and granular funding base, underpinned by a large proportion of low-cost deposits, which supports funding stability and liquidity. Liquidity indicators remain strong, with ample liquid asset buffers and regulatory liquidity metrics maintained comfortably above minimum requirements. The Bank’s capitalization profile is viewed favorably, supported by consistent internal capital generation, strong earnings retention, and adequate capital buffers that provide capacity to support future business growth while maintaining resilience against potential risk. Asset quality remains sound, with infection levels remaining low relative to peers and concentrated exposures largely directed toward established corporates and strategically important sectors. The overall credit risk profile continues to be supported by prudent risk management practices, adequate provisioning buffers, and manageable levels of non-performing financings. Profitability remains strong despite margin compression arising from the declining policy rate environment. While lower spreads have weighed on core earnings, the impact has been partly offset through growth in fee-based revenues, treasury income, and lower provisioning charges. The Bank continues to invest in technology, digital transformation, and operational infrastructure, reinforcing its competitive position and supporting long-term franchise value. Ratings also incorporate the Bank’s governance framework, experienced management team, strong Shariah governance structure, and sponsorship from reputable institutional shareholders.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Financial Institutions
https://docs.vis.com.pk/Methodologies-2026/FI-Methodology-26.pdf
Instrument Rating
https://docs.vis.com.pk/Methodologies-2025/IRM-Apr-25.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf