Bank Makramah returns to profit in CY25

February 26, 2026 (MLN): Bank Makramah Limited (PSX: BML) reported a massive turnaround for the year ended December 31, 2025, posting a net profit of Rs8.83bn compared to a staggering net loss of Rs5.21bn in the previous year.

The bank's earnings per share (EPS) recovered to Rs8.83, a sharp reversal from the loss per share of Rs1 recorded in 2024.

The bank's mark-up, return, or interest earned saw a steep 52% decline year-on-year to Rs18.60bn from Rs38.92bn.

However, mark-up expensed also plunged 55% to Rs19.45bn from Rs42.99bn.

Non-mark-up/interest income provided a massive boost, jumping 2.19 times to Rs7.96bn from Rs3.63bn. This surge was primarily fueled by an 88% increase in gain on securities (Rs2.28bn) and an explosive 5.43 times increase in other income, which hit Rs4.3bn.

Driven by this strong non-core income and the shrinking net interest expense, the bank's total income swung into positive territory, reaching Rs7.10bn compared to a negative Rs446.71m in 2024.

On the expense side, operating expenses saw a moderate 5% increase to Rs8.61bn from Rs8.20bn. Total non-mark-up/interest expenses rose 10% to Rs9bn from Rs8.2bn.

The absolute game-changer for the bank's bottom line was a mammoth net reversal in credit loss allowance and write-offs. This reversal amounted to a staggering Rs21.03bn, jumping 14.87 times compared to the Rs1.41bn reversal recorded in 2024.

This massive injection completely wiped out the operating loss, catapulting profit before taxation to Rs19.13bn, an incredible recovery from the Rs7.23bn pre-tax loss in the prior year.

After accounting for a hefty taxation expense of Rs10.30bn, the bank secured its final net profit of Rs8.83bn.

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