Bank Makramah Limited (PSX: BML) reported a 13.46% narrowing in its loss after taxation for the first quarter ended March 31, 2026, recording a loss of Rs751.21 million compared to a loss of Rs868.09 million in the corresponding period last year. While still in deficit, the reduced loss signals a modest improvement for the embattled financial institution.
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The bank’s loss per share (LPS) improved to Rs0.75, down from a loss per share of Rs0.87 in Q1 2025.
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Loss After Taxation | Rs751.21m | Rs868.09m | -13.46% |
| Loss Per Share (LPS) | Rs0.75 | Rs0.87 | -13.79% |
| Net Mark-up Income | Rs6.05m | Rs56.54m | -89.30% |
| Total Income | Rs465.52m | Rs1.11bn | -58.22% |
| Operating Expenses | Rs2.34bn | Rs2.04bn | +14.60% |
| Credit Loss Allowance | Rs629.63m | Rs201.32m | +212.86% |
Income and Expense Dynamics
The bank faced significant pressure on its core income streams. Net mark-up and interest income declined sharply by 89.30% to Rs6.05 million, as mark-up earned contracted 52.24% while mark-up expensed fell at a similar pace.
Total non-mark-up income also contracted by 56.55% to Rs459.47 million. This was primarily driven by a swing to a loss on securities of Rs1.79 million against a gain of Rs601.14 million in the prior year, alongside a 25.74% drop in fee and commission income.
As a result, total income plunged 58.22% to Rs465.52 million.
Compounding the revenue collapse, operating expenses rose by 14.60% to Rs2.34 billion, significantly outpacing the income base and deepening the pre-credit-loss shortfall. The loss before credit loss allowance more than doubled to Rs1.87 billion.
Credit loss allowance and write-offs more than tripled to Rs629.63 million, adding substantial further pressure. Loss before taxation consequently widened 71.55% to Rs1.24 billion.
Tax Impact
Taxation swung to a charge of Rs490.96 million from a credit of Rs144.01 million in the prior year, further amplifying the bottom-line loss. However, after accounting for taxation, the final net loss narrowed by 13.46% compared to the previous year.
About Bank Makramah Limited
Bank Makramah Limited (PSX: BML) is a Pakistani commercial bank working to strengthen its capital base and financial stability. The bank continues to navigate a challenging interest rate environment while focusing on operational improvements and asset quality.
