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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Posted on: 2024-08-28T17:24:28+05:00
