Bank Makramah Limited (BML) has announced its financial results for the year ended December 31, 2025, reporting a Pre-Tax Profit of PKR 19 billion and completing a remarkable PKR 26.35 billion turnaround compared to the previous year.
The bank posted a Profit After Tax of PKR 8.79 billion, reversing last year’s loss of PKR 5.22 billion. Earnings per share stood at PKR 8.79, compared to a loss per share of Re. 1 in CY24. This marks BML’s first positive bottom line in nearly a decade, signaling a decisive recovery from legacy losses and negative equity.
Record Recoveries and Asset Quality Improvement
The turnaround was largely driven by disciplined recovery efforts and balance sheet repair. During CY25:
- Net provision reversal reached PKR 21.03 billion (vs. PKR 1.42 billion in CY24)
- Non-performing loans (NPLs) declined by PKR 17.57 billion, reducing to PKR 16.62 billion
- Asset quality and overall risk profile improved materially
Strong Non-Funded Income Growth
In a declining interest rate environment, BML capitalized on treasury positioning and asset rationalization:
- Gains on securities: PKR 2.25 billion
- Property disposals: PKR 4.23 billion
- Non-funded income: PKR 7.75 billion (up 122% year-on-year)
Cost Discipline and Capital Compliance
Operating expense growth was contained at just 4.69%, with non-markup expenses at PKR 8.85 billion compared to PKR 8.09 billion in CY24.
The bank also completed critical steps to restore regulatory compliance, including:
- Approval of a Scheme of Arrangement
- Significant NPL recoveries
- Sale of self-constructed property
- PKR 5 billion capital injection by the sponsor shareholder
As a result, BML achieved compliance with:
- Capital Adequacy Ratio (CAR): 11.65%
- Minimum Capital Requirement: PKR 15 billion
Further strengthening capital, TFC holders approved conversion of principal and accrued profit into fully paid ordinary shares, with approximately PKR 3.35 billion expected to be added to Tier 1 capital in Q1 2026.
Outlook for 2026
With Pakistan’s macroeconomic indicators improving—supported by fiscal consolidation, monetary easing, and strong remittance inflows—BML is positioned to resume full banking operations.
Strategic priorities moving forward include:
- Trade finance expansion
- Growth in non-funded income
- Cash management solutions
- Digital banking initiatives
- Full Islamic transformation
With regulatory compliance restored, capital strengthened, and profitability re-established, Bank Makramah Limited enters 2026 focused on financial stability, strategic clarity, and sustainable value creation.
