Record profit for Bank of Maldives

Record profit for Bank of Maldives
April 12 14:13 2018

The national bank earned a record profit before tax of MVR1.4 billion (US$91 million) last year, according to its annual report released Thursday.

The Bank of Maldives “recorded its best ever financial performance while simultaneously doubling its investment in local communities,” the bank said in a press statement, with annual profit up four percent from the previous year.

Business volumes and “further improvement in loan book quality” helped offset higher costs and lower margins in some segments, it added, revealing new lending worth MVR4.4 billion in 2017. A deposits increase of 15 percent was above market growth levels whilst “capital and liquidity ratios were comfortably in excess of regulatory requirements.”

Buoyed by the “robust financial position”, the BML board of directors recommended a dividend payout of MVR118.4 million or MVR22 per share.

In 2017, the bank continued to open new atoll branches and doubled its community investment with more than 50 projects across the country that supported charitable, educational, sports and environmental causes.

Andrew Healy, BML CEO and managing director, observed that the bank’s ratio of nonperforming to total loans has now fallen to four percent from over 20 percent three years ago.

Healy noted that more than 90 percent of all transactions last year was conducted online, which has helped improve customer service at branches.

Highlighting its fledging Islamic bank arm, Healy added that BML is on course to provide Shari’ah-compliant alternatives to all of its conventional products by the end of 2018.

In April last year, the bank became the first public company to post a net profit in excess of MVR1 billion.

The state-owned infrastructure developer also published its annual report today, revealing a net profit of MVR145 million (US$9.5 million) in 2017.

The Maldives Transport and Contracting Company’s core business involves construction, dredging, transport services and trading in products related to marine transport and construction, describing itself as a market leader in logistics and docking services.

Operating profits are at an all-time high for the sixth consecutive year after deducting the effects of a government transport subsidy, MTCC CEO Ibrahim Ziyath said in his statement.

In 2017, MTCC completed the first ever rights issue campaign in the Maldives, raising MVR188.34 million from the capital market.

Among other highlights were the delivery of its new hopper dredger Mahaa Jarrafu, which reclaimed land in Kulhudhuffushi for an airport project in late 2017.

Other projects completed during the year included the Malé Industrial Village and Sultan Park redevelopment as well as a museum and park project on Thinadhoo island in Gaaf Dhaalu atoll.