Bank Makramah Limited Posts PKR 1.75 Billion Profit Before Tax in 9 Month 2025

Bank Makramah Limited(BML) has continued its remarkable recovery by posting aprofit before tax of PKR 1.75 billionfor the nine months ended September 30, 2025 — a sharp turnaround from aloss of PKR 5.05 billionrecorded in the same period last year. This represents apositive swing of PKR 6.80 billion, underscoring the Bank’s sustained momentum after achieving a profit before tax of PKR 1.44 billion in the first half of 2025 — its first positive bottom line in nearly a decade. According to the financial results,profit after tax stood at PKR 861 million, compared to aloss of PKR 3.18 billionduring the corresponding period last year. The improvement reflects a fundamental strengthening of BML’s financial position, driven bystrong income growthandrecord recoveries from non-performing loans (NPLs). During the nine-month period, the Bank’stotal income increased by PKR 2.18 billion, whilenon-fund income rose by 8% to PKR 2.95 billion. This growth was attributed to prudent investments, effective cost of deposit management, and higher capital gains. BML’sdeposit base closed at PKR 165.58 billionas of September 30, 2025 — up by PKR 3.11 billion or 1.92% year-on-year. On an average basis, deposits grew by PKR 11.51 billion (7.28%), reflecting the Bank’s strategic focus on stable funding and balance sheet expansion. Amidst intense market competition, BML maintained its focus on improving theCurrent Account and Savings Account (CASA) mix, which improved to94.58% from 89.59%in September 2024. The Bank reported a robustaverage cost of deposits at 7.20%for the period. Demonstrating continued cost discipline,operating expenses increased by only 7.2%year-on-year to PKR 6.39 billion from PKR 5.96 billion, showcasing enhanced operational efficiency. BML also reportedrecord recoveries from NPLs, achieving anet provision reversal of PKR 5.99 billion, compared to PKR 0.97 billion in the same period last year. Consequently, thestock of NPLs declined to PKR 28.88 billionfrom PKR 34.19 billion at the end of 2024. Thegross NPL ratio improved to 63.57%, down from 69.95%, while thecoverage ratio remained strong at 95.49%. The Bank is now nearingfull capital compliance, supported by the steadfast commitment of itssponsor shareholders. Key initiatives include theproposed amalgamation of Global Haly, valued at over PKR 26 billion, into the Bank, and anadvance against share capital injection of PKR 5 billion, which will be converted into equity to ensure Minimum Capital Requirement (MCR) compliance. Additionally, thesale of Cullinan Tower, finalized at PKR 12 billion (with PKR 1 billion already received), and thesettlement of large NPL exposuresare expected to further strengthen the Bank’s equity base and balance sheet. With continued emphasis on organic growth, governance, and operational discipline,Bank Makramah Limited is poised to close 2025 with record results, marking one of the most significant turnarounds in Pakistan’s banking sector. The Bank’s transformation reflects the success of its strategic execution and the unwavering commitment of its Sponsors, Board of Directors, and Management toward building aresilient, efficient, and profitable financial institutionfor the future.