Bank Makramah Limited (BML) has announced its financial results for the year ended December 31, 2025, delivering a landmark financial recovery with Pre Tax Profit of PKR 19 Billion and a total turnaround of PKR 26.35 Billion compared to the previous year. Profit after tax also stood positive at Rs. 8.79 Billion against loss of Rs. 5.22 Billion in prior year. This resulted in earning per share of Rs. 8.79 against loss per share of Re. 1 in last year. The results mark a decisive return to profitability following overwhelming legacy challenges, negative equity and sustained losses. This represents BML’s first positive bottom line in nearly a decade.
The turnaround was principally driven by disciplined recovery execution and balance sheet repair. During CY25, the Bank achieved the highest recoveries in its history from non-performing loans, resulting in a net provision reversal of PKR 21.03 Billion compared to PKR 1.42 Billion in CY24. Non-performing loans were reduced by PKR 17.57 Billion to PKR 16.62 Billion, materially strengthening asset quality and improving the overall risk profile.
In a declining interest rate environment, BML capitalized on treasury positioning and asset rationalization. Gains on securities amounted to PKR 2.25 Billion, while property disposals contributed PKR 4.23 Billion. As a result, non-funded income reached PKR 7.75 Billion, reflecting growth of 122 percent year-on-year and demonstrating improved income diversification.
Cost discipline remained central throughout the restructuring phase. Through continuous monitoring and optimization initiatives, operating expense growth was limited to just 4.69 percent, with total non-markup expenses at PKR 8.85 Billion compared to PKR 8.09 Billion in the prior year.
The Bank also completed critical measures required to restore capital compliance. These included the sanctioning of a Scheme of Arrangement, substantial recoveries against non-performing loans, sale of a self-constructed property, and a PKR 5 Billion capital injection by the Sponsor Shareholder. As a result, BML achieved compliance with both the Capital Adequacy Ratio at 11.65 percent and the Minimum Capital Requirement of PKR 15 Billion.
Further strengthening its capital base, TFC holders approved the conversion of principal and accrued profit into fully paid ordinary shares, with approximately PKR 3.35 Billion expected to be incorporated into Tier 1 Capital in the first quarter of 2026.
With Pakistan’s macroeconomic environment showing signs of stabilization through fiscal consolidation, monetary easing and strong remittance inflows, BML enters 2026 positioned to resume full banking operations. Liquidity from asset sales and NPL recoveries, combined with strengthened capital, will support calibrated growth. Strategic focus will remain on trade finance, non-funded income, cash management solutions and digital banking, alongside the Bank’s commitment to full Islamic transformation.
With regulatory compliance restored, capital strengthened and profitability re-established, Bank Makramah Limited moves into its next phase defined by financial stability, strategic clarity and sustainable value creation.
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