Bank Makramah Limited has reported a net loss of Rs5.78 billion for the nine months ended September 30, 2026, compared to a profit after taxation of Rs875.02 million in the corresponding period last year, reflecting a significant deterioration in its financial performance.
According to the financial results submitted to the Pakistan Stock Exchange (PSX), the bank’s consolidated financial statements showed a loss before taxation of Rs7.43 billion during the nine-month period, compared to a profit before taxation of Rs1.78 billion in the same period of 2025.
The bank also recorded a loss of Rs1.10 billion in the third quarter ended September 30, 2026, against a profit of Rs170.54 million in the corresponding quarter last year.
Decline in Core Banking Income
Bank Makramah’s financial performance remained under pressure due to increased mark-up and interest expenses relative to earnings. During the nine months, mark-up and interest earned stood at Rs8.74 billion, while mark-up and interest expenses reached Rs11.44 billion, resulting in a net mark-up and interest expense of approximately Rs2.70 billion.
This compares with a net mark-up and interest expense of Rs827.29 million in the corresponding period of the previous year.
The bank’s total income, including non-mark-up income, remained negative at Rs1.18 billion during the nine months, compared to positive income of Rs2.28 billion in the same period last year.
Non-mark-up and interest expenses amounted to Rs6.93 billion, slightly higher than Rs6.49 billion reported in the corresponding period of 2025.
Credit Loss Allowances and Expenses
The bank recorded a net credit loss allowance and write-offs of Rs684.53 million during the nine months ended September 30, 2026, compared to approximately Rs5.99 billion in the corresponding period last year.
Despite the improvement in credit loss provisions, the substantial increase in net mark-up expenses and the pressure on overall income contributed to the bank’s negative financial results.
Growth in Assets and Deposits
On the balance sheet front, Bank Makramah’s consolidated total assets increased to Rs254.39 billion as of September 30, 2026, compared to Rs213.68 billion at December 31, 2025.
Deposits and other accounts reached Rs179.48 billion, compared to Rs168.86 billion at the end of December 2025. Investments also increased to Rs126.08 billion from Rs86.31 billion during the same period.
The bank’s total liabilities stood at Rs229.07 billion, while net assets amounted to Rs25.31 billion at the end of September 2026.
Cash Flow Position
The consolidated cash flow statement showed net cash generated from operating activities of Rs32.74 billion during the nine-month period, compared to net cash used in operating activities of Rs55.67 billion in the corresponding period last year.
However, net cash used in investing activities amounted to Rs40.29 billion, while cash generated from financing activities stood at Rs3.12 billion.
Consequently, cash and cash equivalents declined to Rs11.24 billion at September 30, 2026, from Rs15.68 billion at the beginning of the year.
No Dividend Announced
The Board of Directors of Bank Makramah Limited, in its meeting held on October 30, 2026, reviewed and approved the unaudited financial statements for the period ended September 30, 2026.
The board did not announce any cash dividend, bonus shares, or right shares for shareholders.
Outlook
Bank Makramah’s nine-month results highlight the financial challenges facing the institution, particularly the pressure arising from its funding costs and overall income generation.
Although the bank demonstrated growth in total assets and deposits and recorded a significant reduction in credit loss allowances compared to last year, its transition from profit to a substantial loss remains a key concern for shareholders and market participants.
Investors will be watching the bank’s upcoming financial performance closely, particularly its ability to improve core banking income, manage funding expenses, and restore profitability in the coming quarters.
