In a significant financial turnaround, Bank of Makramah Limited (BML) has posted its first pre-tax profit in more than ten years — a notable PKR 1.44 billion for the half-year ending June 30, 2025. Net profit after tax stood at PKR 707 million, signaling a sharp recovery from the PKR 2.44 billion loss recorded in the same period last year.
From Losses to Gains: What Drove the Shift?
The bank’s resurgence, approved by the Board of Directors on August 1, reflects a year-on-year improvement of PKR 3.88 billion — a figure that underscores a strategic pivot finally bearing fruit.
Chairman Abdulla Nasser Abdulla Hussain Lootah credited the bank’s positive trajectory to multiple factors: stronger net mark-up income, recoveries from long-troubled loans, a healthier deposit mix that helped lower funding costs, and gains from treasury operations.
“This achievement is the result of relentless effort by our teams and speaks to the strength of our long-term strategy,” Lootah said. “We’re confident in both the bank’s future and the improving macroeconomic environment.”
Capital Boosts Strengthen Outlook
In addition to operational improvements, BML has shored up its financial position through a series of strategic moves following the reporting period. A key transaction — the sale of a strategic asset — injected PKR 12 billion into the bank’s coffers. An additional PKR 5 billion came in from the bank’s Sponsor as advance against share capital.
Meanwhile, a court-sanctioned restructuring plan (the “Scheme of Arrangement”) is in its final stages at the Islamabad High Court. Once approved, it’s expected to reinforce BML’s capital adequacy and further stabilize its financial foundation.
Leadership Sees Turning Point
Jawad Majid Khan, President and CEO of BML, described the half-year results as a pivotal moment in the bank’s transformation. “This marks a clear break from the past. The turnaround sends a strong message to the market and stakeholders that BML is regaining its strength and stability,” he said. “With restructuring nearly complete, we’re positioned to return to sustainable profitability.”
The Board acknowledged the continued support of the bank’s Sponsor and Chairman, describing it as instrumental in BML’s path to recovery.
What’s Next?
With the financial bleeding stemmed and capital base reinforced, BML now appears poised for long-term stability. The bank’s leadership is betting that its restructured foundation and renewed operational focus will allow it to regain trust in the market — and maintain profitability in the periods ahead.
