Bank Makramah Limited (PSX: BML) has posted a remarkable turnaround in its financial performance, recording a profit after tax of Rs891.3 million for the nine months ended September 30, 2025, compared to a loss of Rs3.18 billion during the same period last year. This recovery marks a significant milestone for the bank, which has managed to reverse its previous losses through strong balance sheet management, improved investment income, and controlled funding costs.
According to the financial statement released by the bank, earnings per share (EPS) stood at Rs0.13, compared to a loss per share of Rs0.48 in the corresponding period of 2024. The turnaround reflects a focused strategy to strengthen the bank’s profitability metrics and stabilize its core operations despite a challenging interest rate environment.
During the nine-month period, Bank Makramah’s mark-up or return income dropped by 54.7 percent year-on-year to Rs14.65 billion, while mark-up or return expenses declined by 56 percent to Rs15.48 billion. As a result, the net mark-up or interest expense contracted by 70.2 percent, narrowing to Rs827.3 million compared to Rs2.78 billion a year earlier. This improvement was largely driven by better liability management and optimized funding costs.
On the non-markup side, the bank’s fee and commission income increased by 1.8 percent to Rs875.8 million, while dividend income rose by 27.5 percent to Rs4.6 million. However, foreign exchange income from derivatives dropped sharply by 71.3 percent to Rs106.1 million, indicating subdued trading activity in currency markets.
A notable highlight in the results was the substantial gain on securities, which surged by 126.7 percent to Rs1.99 billion. Despite an 83.2 percent drop in other income to Rs118.5 million, total non-markup income rose 10.1 percent year-on-year to Rs3.10 billion. Consequently, total income surged to Rs2.28 billion from just Rs43.3 million in the same period last year — a staggering rise primarily supported by robust investment gains.
Operating expenses rose modestly by 7.2 percent to Rs6.47 billion, reflecting the impact of inflationary trends and administrative costs. Other charges nearly tripled to Rs552,000, yet the overall expense growth remained contained. The bank recorded a pre-provision operating loss of Rs4.20 billion, a 30 percent improvement compared to the Rs5.99 billion loss in 2024.
Credit loss allowances and write-offs surged significantly to Rs5.99 billion, up from Rs968.3 million a year earlier, demonstrating the bank’s prudent approach to risk and provisioning in a volatile economic climate. After accounting for taxation of Rs900.7 million — down from Rs1.85 billion in 2024 — Bank Makramah closed the period with a net profit of Rs891.3 million.
The strong rebound in profitability is attributed to improved non-markup income, higher securities gains, and disciplined cost management. Analysts view this as a positive signal for the bank’s long-term outlook, suggesting that its ongoing transformation initiatives are beginning to yield tangible financial results.
This performance also positions Bank Makramah favorably among peer institutions that are navigating Pakistan’s evolving banking landscape, marked by rising credit quality challenges and tighter liquidity conditions. The bank’s renewed profitability momentum highlights its strategic focus on asset quality, operational resilience, and sustainable growth.
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