BML trims Q1 loss 13% to Rs751m

April 29, 2026 (MLN): Bank Makramah Limited (PSX: BML) reported a 13.46% narrowing in loss after taxation for the three months ended March 31, 2026, recording a loss of Rs751.21m compared to a loss of Rs868.09m in the corresponding period last year.

The company's basic and diluted loss per share (LPS) improved to Rs0.75, from a loss per share of Rs0.87 in Q1FY25, reflecting a modest improvement for shareholders during the period.

BML's net mark-up and interest income declined sharply by 89.30% to Rs6.05m from Rs56.54m, as mark-up earned contracted 52.24% to Rs2.83bn while mark-up expensed declined at a nearly commensurate pace of 51.88% to Rs2.83bn.

Total non mark-up and interest income contracted 56.55% to Rs459.47m from Rs1.06bn, pressured by a swing to a loss on securities of Rs1.79m against a gain of Rs601.14m in the prior year and a 25.74% decline in fee and commission income to Rs269.96m.

Total income consequently declined 58.22% to Rs465.52m from Rs1.11bn.

Operating expenses rose 14.60% to Rs2.34bn from Rs2.04bn, significantly outpacing the income base and deepening the pre-credit-loss shortfall.

The resulting loss before credit loss allowance more than doubled to Rs1.87bn from Rs925.41m.

Credit loss allowance and write-offs more than tripled to Rs629.63m from Rs201.32m, adding substantial further pressure. Loss before taxation consequently widened 71.55% to Rs1.24bn from Rs724.08m.

Taxation swung to a charge of Rs490.96m from a credit of Rs144.01m in the prior year, further amplifying the bottom-line loss.

After accounting for taxation, Bank Makramah Limited closed the quarter with a loss after taxation of Rs751.21m, representing a 13.46% narrowing compared to the loss of Rs868.09m reported in the corresponding period of last year.

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