Bank Makramah swings to Rs6bn loss in 9MCY26

October 30, 2026 (MLN): Bank Makramah Limited (PSX: BML) posted a net loss of Rs5.78bn for the nine months ended September 30, 2026, compared with a profit after taxation of Rs875.02m in the same period last year.

Basic and diluted loss per share (LPS) stood at Rs5.68, against earnings per share (EPS) of Rs0.88 in the corresponding period last year.

The swing came from a more than tripled net mark-up expense, a 95.78% collapse in gains on securities and an 88.58% smaller reversal of credit loss allowance.

A taxation credit, against a charge last year, and a nearly six-fold jump in foreign exchange income only partly cushioned the impact.

Mark-up/return/interest earned fell 40.38% to Rs8.74bn from Rs14.65bn, while interest expensed declined at a slower pace of 26.12% to Rs11.44bn from Rs15.48bn. As a result, net mark-up/interest expense widened more than three-fold, up 226.48% to Rs2.70bn from Rs827.29m.

Gain on securities plunged 95.78% to Rs84.29m from Rs2.00bn, and fee and commission income fell 14.36% to Rs750.02m from Rs875.78m.

Other income declined 42.15% to Rs68.53m from Rs118.46m. Foreign exchange income rose more than five-fold to Rs612.43m from Rs106.11m, and dividend income increased 72.52% to Rs7.86m from Rs4.56m.

Total non-markup income halved, falling 50.91% to Rs1.52bn from Rs3.10bn. Total income turned negative at Rs1.18bn, against positive income of Rs2.28bn last year.

Operating expenses increased 6.78% to Rs6.93bn from Rs6.49bn, and other charges rose 24.46% to Rs687,000 from Rs552,000. Total non-markup expenses grew 6.78% to Rs6.93bn from Rs6.49bn.

As a result, the loss before credit loss allowance widened 92.34% to Rs8.11bn from Rs4.22bn.

A net reversal of credit loss allowance and write-offs of Rs684.53m, down 88.58% from Rs5.99bn last year, narrowed the loss before taxation to Rs7.43bn, against a profit before taxation of Rs1.78bn last year.

A taxation credit of Rs1.64bn, against a charge of Rs900.74m last year, cushioned the loss further and left it at Rs5.78bn.

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