April 29, 2024 (MLN): Bank Makramah Limited (PSX: BML) has continued its loss-making journey as the bank witnessed a loss of Rs812.69 million [LPS: Rs0.15] for the quarter ended March 31, 2024 (Q12024) compared to Rs934.14m [LPS: Rs0.35] loss recorded in the same quarter last year (SPLY).
However, this represents a 13.04% reduction in losses on a year-on-year basis due to improved non markup income.
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 Rs938.2m, marking a 2.3x YoY spike from the net expense of Rs407.77m recorded in Q12023.
On the other hand, the bank’s total non-markup interest income surged to Rs626.43m in Q12024 compared to the Rs48.77 million recorded in Q12023.
This was attributed to higher fee and commission income and gains on securities, driven by improved economic activity in the country.
The expense section of the statement shows that total non-mark-up/interest expenses stood at Rs1.87bn, up by 16.52% YoY.
The rise reported was mainly attributed to growth in operating expenses of the bank that clocked in at Rs2.18bn during the review period.
BML’s provisioning resulted in a reversal of Rs1.09bn in Q12024, compared to Rs533.86m that was witnessed by the bank in Q12023.
The decline in net interest earnings coupled with rising operating costs widened the loss for the bank in Q1 2024.
On the taxation front, the bank incurred a credit of Rs279.48m, which is around 44% lower than the tax rebate received in Q12023.
| Consolidated Profit and Loss Account for the quarter ended March 31, 2024 (‘000 Rupees) | |||
|---|---|---|---|
| Mar-24 | Mar-23 | % Change | |
| Mark-up/return/interest earned | 10,750,113 | 3,609,945 | 197.79% |
| Mark-up/return/interest expensed | 11,688,313 | 4,017,713 | 190.92% |
| Mark-up/return/interest expensed | (938,200) | (407,768) | 130.08% |
| NON MARK-UP/INTEREST INCOME | |||
| Fee and commission income | 287,472 | 146,539 | 96.17% |
| Dividend income | 8 | 8 | 0.00% |
| Foreign exchange income | 142,130 | 363,306 | -60.88% |
| Income / (loss) from derivatives | – | – | – |
| Gain / (loss) on securities | 175,787 | (476,463) | – |
| Other income | 21,036 | 15,382 | -56.87% |
| Total non mark-up/interest income | 626,433 | 48,772 | 1184.41% |
| Total Income | (311,767) | (358,996) | -13.16% |
| NON MARK-UP/INTEREST EXPENSES | |||
| Operating expenses | 1,872,693 | 1,607,095 | 16.53% |
| Workers’ Welfare Fund | – | – | – |
| Other charges | – | 120 | -100.00% |
| Total non mark-up/interest expenses | 1,872,693 | 1,607,215 | 16.52% |
| profit before provisions | (2,184,460) | (1,966,211) | 11.10% |
| Credit loss allowance and write offs – net | 1,092,292 | 533,855 | 104.60% |
| Extraordinary items/unusual items | – | – | |
| Profit before taxation | (1,092,168) | (1,432,356) | -23.75% |
| Taxation | 279,479 | 497,814 | -43.86% |
| Profit after taxation | (812,689) | (934,542) | -13.04% |
| earnings per share – basic (Rupees) | -0.15 | -0.35 | – |
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Posted on: 2024-04-29T13:26:18+05:00
