Bank Makramah swings to Rs891m profit in 9MCY25

October 28, 2025 (MLN): Bank Makramah Limited (PSX: BML) reported a profit after tax of Rs891.3m for the nine months ended September 30, 2025, compared to a loss of Rs3.18bn in the corresponding period last year, showing a strong turnaround in profitability.

Earnings per share (EPS) stood at Rs0.13, versus a loss per share of Rs0.48 in the same period of 2024.

The bank’s mark-up/return/interest earned dropped 54.7% year-on-year to Rs14.65bn, while mark-up/return/interest expensed declined 56% to Rs15.48bn. As a result, net mark-up/interest expense narrowed by 70.2% to Rs827.3m, compared to Rs2.78bn last year.

On the non-markup side, fee and commission income grew 1.8% to Rs875.8m, while dividend income increased 27.5% to Rs4.6m.
However, foreign exchange income from derivatives plunged 71.3% to Rs106.1m.

On the other hand, gain on securities surged 126.7% to Rs1.99bn, and other income declined 83.2% to Rs118.5m.

Consequently, total non-markup income improved 10.1% year-on-year to Rs3.10bn, while total income surged sharply to Rs2.28bn from Rs43.3m in the same period last year, primarily due to better investment performance.

Operating expenses rose 7.2% to Rs6.47bn, and other charges nearly tripled to Rs552,000. Despite higher costs, the bank managed to record a loss before credit loss allowance of Rs4.20bn, which was 30% lower than the Rs5.99bn loss in the same period of 2024.

Credit loss allowances and write-offs increased significantly to Rs5.99bn, compared to Rs968.3m last year, showing prudent provisioning.

After accounting for taxation of Rs900.7m (down from Rs1.85bn in 2024), the bank concluded 9MCY25 with a net profit of Rs891.3m, marking a strong recovery from losses in the previous year.

The turnaround in profitability was mainly driven by higher gains on securities, improved non-markup income, and controlled funding costs, signaling operational stability and stronger earnings momentum going forward.

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