Bank Makramah Limited (BML) has announced the successful implementation of its court-sanctioned financial restructuring plan, as disclosed through Pakistan Stock Exchange (PSX) notices. Approved by the Islamabad High Court, the restructuring eliminates accumulated losses through a capital reduction, leaving the bank with a clean balance sheet and positioning it for sustainable, profitable growth.
BML said the move is designed to accelerate growth rather than address distress, highlighting that the bank has already reported net profits for the first nine months of the current financial year. The turnaround was further strengthened by recoveries from non-performing loans, supporting the bank’s improving earnings profile. Following the cleanup, BML expects its Earnings Per Share (EPS) to turn significantly positive, creating a pathway toward the eventual resumption of dividends.
The bank also reaffirmed sponsor commitment, noting His Excellency holds 86.1% shareholding and has proposed a shareholder-friendly adjustment to the transaction mechanism. While the original swap ratio was based on a share value of Rs. 2.14, the revised mechanism effectively values additional shares at Rs. 6.25 per share. This adjustment is expected to reduce the sponsor’s holding from around 86% to 76%, with the remaining 10% of capital distributed proportionally among minority shareholders, with BML stating there will be no dilutive impact on existing shareholders.
BML added that the sponsor has invested PKR 41 billion to date and remains the ultimate controlling shareholder, as he also owns 99.86% of Global Haly Development Limited (GHDL), meaning there is no change in ownership, control, or management.
To protect shareholder value and preserve market capitalization, BML said the opening price on February 2, 2026 will be calculated by multiplying the January 30, 2026 closing price by 18.99003516, ensuring shareholder worth remains unchanged across the adjustment. The bank also cited its inclusion among top-performing Asia-Pacific banking names in 2025 with a reported return of 119.6%, along with recognition by the Pakistan Bankers Association in its report dated January 12, 2026.
With improved profitability, a clean balance sheet and continued sponsor support, BML said it is now positioned for a new chapter of long-term value creation.
Comments