BML posts Rs4.7bn loss in 1HCY26

August 28, 2026 (MLN): Bank Makramah Limited (PSX: BML) reported a net loss of Rs4.68bn for the half-year ended June 30, 2026 (1HCY26), reversing from a restated net profit of Rs704.47m recorded in the corresponding period last year.

Reflecting this sharp financial contraction, basic loss per share (LPS) reached Rs4.62 for the six-month period, down from an earnings per share (EPS) of Rs0.70 in 1HCY25.

The primary catalyst driving the downturn was a significant expansion in net mark-up losses alongside reduced non-interest revenue.

Mark-up/interest earned fell by 60% year-on-year to Rs4.08bn, while mark-up expensed contracted by 40% to Rs6.41bn. As a result, net mark-up expense widened multi-fold to Rs2.33bn compared to Rs358.79m in 1HCY25.

On the non-interest front, total non-mark-up income fell 56% to Rs1.02bn (down from Rs2.32bn in 1HCY25).
This contraction was primarily driven by a 93% drop in gains on securities (falling to Rs102.37m from Rs1.52bn) and a 91% decline in other income (Rs10.16m), which offset a 242% surge in foreign exchange income (Rs388.67m).

Driven by interest spread compression, total net operating position turned negative, recording a loss of Rs1.31bn compared to total income of Rs1.96bn in the prior period.

On the expense side, operating expenses expanded 10% to Rs4.59bn, pushing loss before credit loss allowance up to Rs5.90bn.

Below the pre-provision line, credit loss allowance and write-offs stood at a charge of Rs321.91m, compared to a provision reversal of Rs3.67bn recorded in 1HCY25.

This shift pushed loss before taxation to Rs5.58bn (reversing a pre-tax profit of Rs1.45bn in 1HCY25).

Compounded by mark-up expense expansion, lower securities gains, and the reversal of provisioning credits, Bank Makramah Limited closed the six-month period with an overall net loss of Rs4.68bn.

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