Meezan vs Faysal vs Bank Makramah: Islamic Bank Stocks 2026

Meezan Bank (MEBL), Faysal Bank (FABL) and Bank Makramah (BML) are the three fully Islamic banks in the KSE-100 index. Meezan Bank operates only as an Islamic bank. Faysal Bank converted all its branches and received an Islamic banking licence at the end of 2022, and Summit Bank became Bank Makramah when it converted in November 2023. All three end their year on 31 December. Prices are PSX closing prices on 30 October 2026.

Earnings are trailing twelve months (TTM): 9M 2026 EPS plus the fourth quarter of 2025. Dividends are those declared during 9M 2026 plus the final dividend for 2025.

Earnings are consolidated where the bank reports a group. Book values are from S&P Global data at 30 June 2026. Meezan's earnings and dividends are the same as in our big-four bank comparison, at the 30 October price.

Meezan costs more because it earns more. It earned a 32.4% return on its book value over the last twelve months, against 19.2% at Faysal Bank. For a bank, P/B divided by ROE gives the P/E: Meezan's 3.23 times book at a 32.4% ROE works out to 10.0 times earnings, and Faysal's 1.18 times book at 19.2% to 6.1 times.

So on earnings, Faysal is about 40% cheaper. Meezan's premium buys a larger, faster-growing bank: its 9M 2026 profit rose 5.9% to Rs 74.65 billion, nearly five times Faysal's Rs 15.68 billion, and its third-quarter profit rose 11%. Faysal's profit was flat.

Faysal Bank: non-funded income rose 20%, but expenses rose 7.6% and its reversal of credit losses fell to Rs 1.34 billion from Rs 4.20 billion, so profit was flat.

Bank Makramah: the profit it earned on financing fell faster than what it paid depositors, so it paid out Rs 2.70 billion more than it earned on that line, against Rs 0.83 billion a year earlier. Gains on securities fell to Rs 84 million from Rs 2.00 billion, and a smaller release of credit losses added to the loss.

Bank Makramah has been rebuilt from negative equity. S&P Global data show shareholders' equity of minus Rs 13.1 billion at 30 September 2025 and plus Rs 23.7 billion at 31 December 2025, after a restructuring that brought in new capital and raised its share count to about 1 billion from 331 million. It reported a profit of Rs 7.94 billion in the December 2025 quarter.

In 2026 it has lost money in every quarter, and its book value per share fell to Rs 22.22 at 30 June from Rs 25.59 at 31 March. At Rs 58.33, the market values it at 2.6 times that book value, which prices in a recovery that has not shown up in its results yet. It is much smaller than the other two: deposits of Rs 191 billion at 30 June 2026, against Rs 1.56 trillion at Faysal Bank.

Faysal Bank yields more and pays out less of its earnings, so its dividend has more room. Meezan pays far more per share, Rs 30.50 against Rs 6.50, but its higher share price means a lower yield. The dividend calculator works out your income after tax from any of these payouts.

We ranked the three banks 1 (best) to 3 on the same five measures as our other bank comparisons. A lower total is better. Bank Makramah's loss puts it last on P/E, ROE and growth.

• Value and income: Faysal Bank. The lowest P/E and P/B and the highest yield. The risk is flat profit.
• Quality and growth: Meezan Bank. The highest ROE and the fastest growth among the three. The risk is paying 10 times earnings and 3.2 times book.
• Turnaround bet: Bank Makramah. A small bank still losing money after its recapitalisation, priced well above its book value.

For how Shariah screening works for shares, read our KMI-30 Shariah investing guide. Faysal Bank is also compared with conventional banks in our Bank AL Habib, NBP, Bank Alfalah and Faysal comparison. This comparison is educational and is not a recommendation to buy or sell any stock. Prices change daily, and we update these figures after each quarterly result.