Bank Makramah’s loss widens to Rs5.88bn in 2023

March 04, 2024 (MLN): Bank Makramah Limited (PSX: BML) announced its results for the year ended December 31, 2023, wherein the bank’s net widened by84.5% YoY to Rs5.88 billion [LPS: Rs1] compared to Rs3.19bn [LPS: Rs1.21] loss recorded in the same period last year (SPLY).

It is crucial to note that BML was formerly known as Summit Bank Limited (PSX: SMBL).

According to the income statement released by the bank on the PSX, it declared a net markup expense of Rs2.58 billion, marking a 14.31% YoY decline from the net expense of Rs2.25bn recorded in 2022.

Similarly, the bank’s total non-markup interest income was also reported to be around 11.6% YoY lower, amounting to Rs1.28bn in 2023.

This was due to a major loss on securities of Rs1.29bn witnessed in 2023, compared to a gain of Rs30.53bn as reported in 2022.

The expense section of the statement shows that total non-mark-up/interest expenses stood at Rs7.24bn, up by 22.22% YoY.

The rise reported was mainly attributed to growth in operating expenses of the bank that clocked in at Rs7.24bn during the review period.

BML's provisioning resulted in a reversal of Rs1.15bn in 2023, compared to a provision expense of Rs584.12m that was witnessed by the bank in 2022.

The decline in net interest earnings coupled with rising operating costs widened the loss for the bank in 2023.

On the taxation front, the bank paid Rs2.06bn in 2023, which is around 50% lower than the Rs4.12bn tax paid in 2022.

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