Bank Makramah Limited has achieved a significant milestone in its corporate recovery journey, receiving high-grade initial entity ratings from VIS Credit Rating Company Limited. In an announcement made on Wednesday, the rating agency assigned BML a long-term rating of ‘A-’ and a short-term rating of ‘A2’, accompanied by a ‘Stable’ outlook. This development serves as a formal validation of the bank’s dramatically improved credit profile, which has been bolstered by consistent sponsor support and a successful recapitalization process. The ratings reflect a period of intense internal restructuring aimed at strengthening the institution’s governance and liquidity frameworks.
The current rating assignment is particularly noteworthy when contrasted with the bank’s turbulent financial history. The last time BML held assigned ratings was in 2018, when it stood at ‘BBB-’ for the long term and ‘A3’ for the short term with a ‘Negative’ outlook. Those ratings were subsequently suspended in 2019 as the bank faced structural challenges. The restoration of these ratings today signifies not just a return to the fold of rated financial institutions, but a substantial upgrade that elevates the bank’s standing in the eyes of investors and depositors alike. The shift from a ‘Negative’ to a ‘Stable’ outlook highlights the market’s newfound confidence in the bank’s direction.
This achievement is the culmination of a comprehensive transformation journey that has seen the bank reinforce its capital base and significantly improve its solvency position. A key driver behind this upgrade was the bank’s stellar financial performance in the preceding year. For the fiscal year ending in 2025, Bank Makramah Limited reported a record-breaking pre-tax profit of PKR 19 billion. This surge in profitability allowed the bank to comfortably meet the Minimum Capital Requirement and Capital Adequacy Ratio benchmarks mandated by the State Bank of Pakistan, removing previous regulatory concerns regarding its capital buffers.
The transition from a period of suspension to a robust ‘A-’ rating underscores the effectiveness of BML’s strategic objectives. By enhancing its governance structure and maintaining a disciplined approach to risk management, the bank has managed to stabilize its operations even amidst broader economic volatility. This progress has been steady and consistent, allowing the institution to move away from its legacy issues and re-emerge as a competitive player in the modern banking landscape. The stable outlook suggests that VIS expects the bank to maintain its current financial health over the medium term.
As Bank Makramah Limited enters this next phase, the focus shifts toward sustainable value creation for its stakeholders. With a clear strategic roadmap and restored financial credibility, the bank is now positioned to expand its lending activities and deposit base. The milestone of reaching a PKR 19 billion profit while satisfying all regulatory capital headers provides a solid foundation for future growth. For the broader Pakistani banking sector, the recovery of BML serves as a case study in how targeted recapitalization and governance reforms can successfully turn around a distressed financial institution.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.