Bank Makramah Limited (PSX: BML) has achieved a remarkable financial turnaround for the year ended December 31, 2025, reporting a net profit of Rs8.83bn compared to a net loss of Rs5.21bn in the previous year. This dramatic recovery also reflects in earnings per share (EPS), which soared to Rs8.83 from a loss per share of Rs1 recorded in 2024, highlighting a strong rebound in the bank’s overall performance.
Despite the positive bottom line, the bank experienced a 52% decline in mark-up, return, or interest earned, which fell to Rs18.60bn from Rs38.92bn in 2024. Interest expenses also plunged by 55% to Rs19.45bn from Rs42.99bn, helping shrink the net mark-up or interest expense to a negative Rs857.54m, a significant improvement from the Rs4.07bn loss recorded the prior year. The reduction in net interest expenses played a key role in the overall recovery.
A critical driver behind the profit surge was the extraordinary growth in non-mark-up or interest income, which more than doubled to Rs7.96bn from Rs3.63bn. Gains on securities increased 88% to Rs2.28bn, while other income skyrocketed 5.43 times to Rs4.3bn, highlighting the bank’s effective diversification of income streams beyond traditional interest-based earnings. Fee and commission income also contributed, rising modestly by 5% to Rs1.18bn, and dividend income increased 84% to nearly Rs15m, further strengthening non-core revenue sources.
Overall, Bank Makramah’s total income swung into positive territory at Rs7.10bn, compared to a negative Rs446.71m in 2024. On the expense side, operating expenses saw a moderate 5% increase to Rs8.61bn, while total non-mark-up expenses rose 10% to Rs9bn. These increases were outweighed by the significant income growth, enabling a net positive result.
The most dramatic factor affecting the bank’s financial recovery was the massive net reversal in credit loss allowance and write-offs, which totaled Rs21.03bn, jumping nearly 15 times compared to Rs1.41bn in 2024. This reversal effectively offset prior operating losses, propelling profit before taxation to Rs19.13bn, a stark turnaround from the Rs7.23bn pre-tax loss of the previous year.
After accounting for a taxation expense of Rs10.30bn, the bank finalized its net profit at Rs8.83bn. Analysts note that the combined impact of reduced interest costs, substantial non-interest income growth, and the unprecedented credit loss reversal created an exceptional recovery trajectory for Bank Makramah in 2025.
The consolidated financials demonstrate a diversified earnings model increasingly reliant on non-interest income, strategic management of interest expenses, and prudent risk adjustments through credit provisions. This performance is likely to bolster investor confidence, attract market attention, and enhance the bank’s competitive positioning within Pakistan’s financial sector.
Bank Makramah’s results highlight the resilience of modern banking strategies in Pakistan, showing how a combination of income diversification, expense management, and proactive risk handling can turn around previously challenging financial periods. The 2025 financial statements underscore the bank’s capability to adapt and thrive, setting a benchmark for other institutions navigating volatile economic conditions.
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