Bank Makramah Limited (BML) has continued its remarkable turnaround by posting a profit before tax of PKR 1.75 billion for the nine months ended September 30, 2025, compared to a loss of PKR 5.05 billion in the same period last year. This represents an extraordinary turnaround of PKR 6.80 billion, and a consistent trajectory, after posting a profit before tax of PKR 1.44 billion for the half year ended June 30, 2025 (marking the Bank’s first positive bottom line in almost a decade). The profit after tax for the nine months stood at PKR 0.861 billion, compared with a loss after tax of PKR 3.18 billion in the corresponding period last year, reflecting a fundamental improvement in financial performance driven by strong income growth and unprecedented recoveries from non-performing loans.
During the nine months under review, the Bank’s total income increased by PKR 2.18 billion, with non-fund income rising by 8% to PKR 2.95 billion. This turnaround was primarily the result of judicious investments, disciplined cost-of-deposit management, and an increase in capital gains. Deposits closed at PKR 165.58 billion as of September 30, 2025, an increase of PKR 3.11 billion, or 1.92 percent, compared to the same period last year. On average, the deposit portfolio grew by PKR 11.51 billion, or 7.28 percent, underscoring the Bank’s strategic emphasis on stable funding and balance sheet growth. Amidst intense market competition, BML maintained its focus on improving the CASA mix and retaining non-remunerative accounts. Consequently, the CASA ratio improved to 94.58 percent from 89.59 percent in September 2024, resulting in a robust average cost of deposits of 7.20 percent for the period.
The Bank continued to demonstrate prudent cost discipline, restricting the increase in operating expenses to only 7.2 percent compared to the same period last year. Non-mark-up total expenditures stood at PKR 6.39 billion, up from PKR 5.96 billion in the corresponding period, reflecting effective cost management and operational efficiency. Continuing its strong performance over the past three years, the Bank achieved record recoveries from non-performing loans, posting a net provision reversal of PKR 5.99 billion in 2025 compared to PKR 0.97 billion in the same period last year. As a result, the stock of non-performing loans declined from PKR 34.19 billion in December 2024 to PKR 28.88 billion in September 2025, representing one of the highest recoveries in the industry. Accordingly, the gross NPL ratio reduced to 63.57 percent from 69.95 percent at the end of 2024, while the coverage ratio remained strong at 95.49 percent compared to 96.59 percent in December 2024.
BML is now on the verge of achieving full capital compliance, supported by its sponsor shareholders’ unwavering commitment. Their support has been instrumental in this transformation, including the proposed amalgamation of the Sponsor’s company “Global Haly,” valued at over PKR 26 billion, into the Bank, along with the advance against share capital injection of PKR 5 billion (to be converted into equity shares), ensuring MCR compliance. The sale of Cullinan Tower, finalized at PKR 12 billion with PKR 1 billion already received as sale consideration, will further strengthen the Bank’s equity. In addition, the settlement of non-performing loans associated with a large business group has reached its final stage, expected to unlock additional capital and enhance the Bank’s balance sheet strength.
With continued focus on organic growth and operational discipline, Bank Makramah Limited is positioned to close the year with record results. The Bank’s resurgence reflects not only its financial turnaround but also the success of its strategic execution, prudent governance, and the steadfast commitment of its Sponsors, Board of Directors, and Management to building a resilient, efficient, and profitable institution for the future.
