Bank Makramah’s losses narrow in Q2 2024

By MG News | Category Equity | August 28, 2024 at 05:24 PM GMT+05:00

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August 28, 2024 (MLN): Bank Makramah Limited (PSX: BML) has continued its loss-making journey as the bank witnessed a loss of Rs625.33 million for the quarter ended June 30, 2024 (Q2 2024) compared to Rs799.3m negative bottom line recorded in the same quarter last year (SPLY).

However, this represents a 21.77% reduction in losses on a year-on-year basis due to improved non-markup income and higher tax credit

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 Rs1.15bn, marking a 90.86% spike from the net expense of Rs604.04m recorded in Q2 2023.

On the other hand, the bank’s total non-markup interest income surged to Rs1.21bn in Q2 2024 compared to the Rs750.82m recorded in Q2 2023.

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 Rs2.02bn, up by 14.34% YoY.

The rise reported was mainly attributed to the growth in the operating expenses of the bank.

BML's provisioning resulted in a reversal of Rs631.72m in Q2 2024, compared to Rs298.01m that was witnessed by the bank in Q2 2023.

The decline in net interest earnings coupled with rising operating costs widened the loss for the bank in Q2 CY24.

On the taxation front, the bank incurred a credit of Rs708.43m, which is around 35.5% higher than the tax rebate received in Q2 2023.

Consolidated Profit and Loss Account for the quarter ended June 30, 2024 ('000 Rupees)
	Jun-24	Jun-23	% Change
Mark-up/return/interest earned	11,041,017	6,492,850	70.05%
Mark-up/return/interest expensed	12,193,913	7,096,888	71.82%
Mark-up/return/interest expensed	(1,152,896)	(604,038)	90.86%
NON MARK-UP/INTEREST INCOME
Fee and commission income	278,110	160,028	73.79%
Dividend income	3,563	213	1572.77%
Foreign exchange income	154,294	225,673	-31.63%
Income / (loss) from derivatives	-	-	-
Gain / (loss) on securities	103,128	24,455	-
Other income	668,865	340444	-10.91%
Total non mark-up/interest income	1,207,960	750,813	60.89%
Total Income	55,064	146,775	-62.48%
NON MARK-UP/INTEREST EXPENSES
Operating expenses	2,020,427	1,767,052	14.34%
Workers' Welfare Fund	0	0	-
Other charges	104	61	70.49%
Total non mark-up/interest expenses	2,020,531	1,767,113	14.34%
profit before provisions	(1,965,467)	(1,620,338)	21.30%
Credit loss allowance / reversals and write offs-net	631,713	298,010	111.98%
Extraordinary items/unusual items	-	-
Profit before taxation	(1,333,754)	(1,322,328)	0.86%
Taxation	708,426	523,033	35.45%
Profit after taxation	(625,328)	(799,295)	-21.77%
earnings per share - basic (Rupees)	-0.12	-0.08	-

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