Bank Makramah Limited (BML), formerly Summit Bank, has quietly but decisively become one of the most closely tracked financial stocks on the Pakistan Stock Exchange. What was once a bank struggling under regulatory pressure has, in the span of a year, repositioned itself as one of the sector’s strongest performers — a shift driven by sponsor-led capital support, structural consolidation, and an improving balance-sheet outlook.
BML’s share price has surged more than twofold over the past year, outperforming both its peer group and the broader market. The rerating is grounded not in sentiment alone, but in tangible changes to the Bank’s capital structure, governance, and forward-looking financial profile, prompting investors to reassess the institution’s long-term trajectory.
A turnaround anchored by steady foreign sponsorship
At the center of BML’s transformation is its majority shareholder, His Excellency Nasser Abdulla Hussain Lootah. His sustained capital commitment and governance continuity have redefined the Bank’s trajectory at a time when patient foreign investment in Pakistan’s financial sector remains scarce.
To date, the sponsor’s cumulative investment has climbed to an estimated Rs 41 billion, reflecting one of the largest and most persistent capital commitments by any foreign investor in Pakistan’s banking industry. This injection of patient, long-horizon capital has become the bedrock of BML’s revival and a key driver of improving market sentiment.
The most recent Rs 5 billion capital injection — with shares to follow regulatory approvals — underscores the continuity of this commitment and reinforces investor confidence in the Bank’s multi-year rebuild.
Achieving MCR compliance through structural consolidation
One of the most significant de-risking milestones for BML has been the completion of its amalgamation with Global Haly Development Limited (GHDL). The consolidation enabled the Bank to meet the State Bank of Pakistan’s Minimum Capital Requirement (MCR), removing a major regulatory overhang that had constrained previous expansion plans.
Adding to this, the sponsor opted for new shares to be issued at Rs 6.25 instead of the originally determined Rs 2.14 — a rare instance of minority shareholder protection in Pakistan’s capital markets, and a move that further strengthened BML’s governance narrative.
With a fortified capital base and a restructured balance sheet, the Bank now expects to be highly profitable and fully CAR-compliant by December, marking yet another inflection point in its turnaround arc.
Balance-sheet repair reshaping valuation dynamics
A defining feature of BML’s revival has been its progress on legacy non-performing loans (NPLs). A recent decree enabling recovery of approximately Rs 10 billion in NPLs has provided fresh momentum, while additional recoveries of roughly Rs 5 billion remain in view. The scale and visibility of these recoveries have materially reshaped BML’s valuation profile, reducing uncertainty and improving future earnings potential.
Complementing these improvements, the Bank has already received Rs 1 billion as advance payment against the sale of Cullinan Tower — part of a broader asset optimization strategy that continues to strengthen liquidity and investor confidence.
Strategic real estate optionality through Global Haly
Beyond conventional banking operations, BML now carries meaningful asset-backed optionality through the Global Haly development project. The multi-use real estate asset — currently under review for approvals — is slated to become a multi-storey complex featuring residential, commercial, and retail infrastructure. Execution partnerships with foreign builders are expected to fast-track delivery, introducing a distinctive and differentiated value component rarely present in local banking stocks.
Positioning for growth in an evolving banking landscape
BML’s transition into a fully Islamic bank aligns it with the fastest-growing segment of Pakistan’s financial system. Yet the Bank is not merely pursuing Islamic conversion — it is charting a larger strategic pivot toward becoming Pakistan’s leading digital Islamic bank, powered by world-class technology, user-centric design, and a long-term focus on innovation.
From digital onboarding to end-to-end Shariah-compliant product suites, the Bank is investing aggressively in next-generation systems to enhance efficiency, customer experience, and scalability. This digital-first strategy is expected to become a defining pillar of BML’s next phase of growth.
With a strengthened capital base, a cleaner balance sheet, improving profitability indicators, and a rapidly modernizing technology stack, BML is increasingly viewed as a rejuvenated franchise poised for expansion. Ongoing discussions around the potential conversion or reissuance of its TFC as Tier-1 capital, coupled with further NPL recoveries expected in the coming quarters, add further layers to the institution’s unfolding turnaround narrative.
