Bank Makramah Turns Profit with Rs1.44B in 2025

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Bank Makramah Limited achieves a historic Rs1.44 billion profit before tax for the first half of 2025, marking its first profit in over a decade.

Bank Makramah Limited (BML), formerly Summit Bank Limited, has reported a landmark profit before tax of Pakistani Rupee (PKR) 1.44 billion and an after-tax profit of PKR 707 million for the half-year ending June 30, 2025. This achievement, the bank’s first profit in over ten years, was approved by its Board of Directors on August 1, 2025, as announced in a press release. The results reflect a dramatic turnaround from a PKR 2.44 billion loss before tax in the same period last year, an improvement of PKR 3.88 billion, according to Dawn News. This milestone signals a robust recovery for the struggling institution.

BML Chairman Abdulla Nasser Abdulla Hussain Lootah attributed the success to strategic moves, including higher net mark-up income, recoveries of legacy non-performing loans, and an optimized deposit mix that lowered funding costs. He also highlighted treasury gains as a key factor, stating that the results reflect the bank’s broader strategy and the team’s dedication, as quoted by The Express Tribune. Post-period developments further strengthened BML’s position, with a PKR 12 billion strategic asset sale and a PKR 5 billion injection from its sponsor as an advance against share capital, per Daily Times.

President and Chief Executive Officer (CEO) Jawad Majid Khan described the results as a turning point, emphasizing that they validate management’s efforts and signal renewed stability to stakeholders, according to ProPakistani. The bank’s restructuring, including a Scheme of Arrangement pending approval from the Islamabad High Court, is expected to bolster its capital base further. The Board of Directors expressed gratitude to the sponsor and chairman for their unwavering support, which has been pivotal to the bank’s revival.

This achievement comes after years of losses, with BML reporting a PKR 5.33 billion loss in 2023, driven by high interest and non-interest expenses, as noted by Business Recorder. The 2025 profit underscores a disciplined approach to cost management and strategic asset recovery, positioning BML for sustained growth. As Pakistan’s banking sector faces economic challenges, BML’s turnaround offers a beacon of hope for financial stability and investor confidence.