Bank of Maldives: Financial Statements - 30 June 2020

Transcription

1. SECOND QUARTER REPORT April to June 2020
2. SECOND QUARTER REPORT APRIL 2020 TO JUNE 2020 Bank
   of
   Maldives
   (BML)
   is
   the
   leading
   financial
   institution
   in
   Maldives.
   We
   are
   a
   fullservice
   bank
   engaging
   across
   the
   complete
   spectrum
   of
   personal,
   business
   and
   corporate
   financial
   services.
   We
   are
   privileged
   to
   touch
   the
   lives
   of
   almost
   every
   citizen
   and
   business
   in
   Maldives
   through
   our
   extensive
   network
   of
   branches,
   agents,
   relationship
   managers
   and
   online
   banking
   facilities.
   This
   privilege
   brings
   with
   it
   great
   responsibility
   which
   we
   take
   extremely
   seriously. We
   understand
   that
   we
   play
   a
   pivotal
   role
   as
   an
   engine
   of
   growth
   and
   a
   partner
   for
   success
   for
   thousands
   of
   individuals,
   families
   and
   businesses.
   Our
   aim
   is
   to
   actively
   participate
   in
   community
   development
   and
   to
   create
   long-term
   value
   for
   our
   shareholders.
   Our
   business
   is
   built
   on
   a
   clear
   and
   compelling
   strategy
   focused
   on
   3
   strategic
   pillars
   of
   Customer
   Service,
   Support
   for
   Business
   and
   Financial
   Inclusion.
   Our
   strategic
   foundations
   are
   People
   Excellence
   and
   Robust
   Risk
   Management.
   We
   are
   firmly
   focused
   on
   being
   a
   professionally
   managed,
   customer-oriented
   organization
   which
   follows
   international
   best
   practices. Bank of Maldives www.bankofmaldives.com.mv 01
3. SECOND QUARTER REPORT APRIL 2020 TO JUNE 2020 ONE BANK IS INVESTING IN MALDIVES 292 ,000 CUSTOMERS 38 BRANCHES IN ALL 20 ATOLLS 121 ATMs IN ALL 20 ATOLLS 200+ CASH AGENTS ON 165 ISLANDS 6,625 POS MERCHANTS 58 SELF SERVICE BANKING CENTRES 2,000 DHONI BANKING TRIPS MVR 13.8 BILLION LOANS TO INDIVIDUALS & BUSINESSES MVR 19.9 BILLION CUSTOMER DEPOSITS MVR 1 BILLION GOVERNMENT LOAN SCHEMES 950 JOBS WITH 1/3 IN ATOLLS 99% OF STAFF ARE MALDIVIANS THAT BANK IS BANK OF MALDIVES 02
4. SECOND QUARTER REPORT APRIL 2020 TO JUNE 2020 03 Our
   Business
   Strengths Solid
   Financial
   Platform
   Deposit base MVR 20 billion Assets MVR 29 billion Strong capital position well above regulatory requirement Strong
   Customer
   Base 292,000 customers Leading market share in Retail, Corporate and SME segments Market leader in Self Service Banking with largest number of online and ATM users Leadership
   in
   Innovation First to launch POS services in Maldives First to launch Internet and Mobile Banking First to launch cash and cheque deposit machines Leadership
   in
   Service
   Delivery Largest network of Branches, Agents, ATMs and POS terminals in Maldives Exclusive acquirer and issuer of American Express cards in Maldives Principal member in the Maldives for Visa and MasterCard Experienced
   and
   Dedicated
   Team Largest employer in the banking sector 99% of our employees are locals with almost one third employed in the atolls Strong executive leadership team with experience across many countries and banking markets
5. SECOND QUARTER REPORT APRIL 2020 TO JUNE 2020 04 03 05 22 OUR NETWORK 02 24 04 23 02 04 02 24 04 05 22 20 03 02 03 03 04 02 03 04 08 56 09 BRANCH 12 01 17 02 04 ATM CASH AGENT 14 10 01 02 17 10 SELF SERVICE BANKING CENTRE 20 02 03 02 ONE BANK IS INVESTING IN MALDIVES 03 03 08 16 04 09 02 03 19 04 02 08 07
6. SECOND QUARTER REPORT APRIL 2020 TO JUNE 2020 TABLE
   OF
   CONTENTS 06 SUMMARY 12 SHAREHOLDING
   STRUCTURE 06 BUSINESS
   DEVELOPMENTS 12 MATERIAL
   TRANSACTIONS 07 KEY
   FINANCIAL
   INFORMATION 13 CORPORATE
   SOCIAL
   RESPONSIBILITY 11 INVESTOR
   INFORMATION
   13 CORPORATE
   GOVERNANCE
   COMPLIANCE 11 GOVERNANCE 13 REPORTING
   COMPLIANCE Bank of Maldives www.bankofmaldives.com.mv 05
7. SECOND QUARTER REPORT APRIL 2020 TO JUNE 2020 06 1 .
   SUMMARY The
   banking
   sector
   globally
   has
   come
   under
   tremendous
   pressure
   on
   liquidity,
   profitability
   and
   on
   credit
   losses
   as
   a
   result
   of
   the
   global
   Covid-19
   pandemic.
   As
   predicted,
   the
   Bank's
   business
   and
   income
   lines
   were
   impacted.
   Our
   Cards
   and
   other
   fee
   income
   lines
   however
   have
   shown
   some
   recovery
   in
   the
   month
   of
   June,
   and
   are
   expected
   to
   show
   further
   improvement
   as
   the
   economy
   re-opens.
   The
   Bank
   has
   adequate
   levels
   of
   liquidity,
   and
   has
   also
   secured
   a
   significant
   USD
   funding
   line
   from
   International
   Finance
   Corporation
   which
   will
   provide
   further
   support.
   During
   the
   quarter,
   the
   Bank
   supported
   customers
   with
   a
   6-month
   loan
   and
   financing
   moratorium,
   working
   capital
   financing
   as
   well
   as
   short-term
   financing
   for
   businesses
   including
   those
   in
   the
   heavily
   impacted
   tourism
   sector.
   While
   the
   country
   was
   on
   lockdown
   from
   April,
   the
   Bank
   provided
   banking
   services
   online
   and
   through
   digital
   channels;
   and
   essential
   banking
   services
   continued
   without
   interruption
   under
   its
   business
   continuity
   plans. 2.
   BUSINESS
   DEVELOPMENTS §
   As
   part
   of
   the
   government's
   recovery
   plan
   due
   to
   the
   COVID-19
   outbreak,
   we
   partnered
   with
   the
   Ministry
   of
   Finance
   to
   support
   the
   implementation
   of
   the
   COVID-19
   Recovery
   Scheme.
   This
   government
   scheme
   allows
   businesses
   financially
   affected
   by
   the
   COVID-19
   pandemic
   to
   apply
   for
   financing.
   This
   is
   an
   unsecured
   facility
   provided
   at
   6%
   interest
   per
   annum
   with
   a
   repayment
   period
   of
   3
   years. §
   In
   April,
   we
   announced
   positive
   changes
   to
   support
   Maldivians
   living
   overseas
   during
   the
   pandemic.
   Customers
   using
   BML
   Debit
   cards
   at
   ATMs
   overseas
   were
   able
   to
   withdraw
   the
   equivalent
   of
   USD
   1000
   daily,
   an
   increase
   from
   the
   daily
   limit
   of
   USD
   400
   at
   a
   reduced
   fee. §
   Also
   in
   April
   we
   introduced
   Self-Service
   Banking
   ATM
   Centres
   in
   GA.
   Maamendhoo
   and
   GA.
   Nilandhoo
   for
   cash
   withdrawals,
   deposits
   and
   transfers.
   Plans
   to
   install
   new
   ATMs
   in
   N.
   Kendhikulhudhoo,
   K.
   Guraidhoo,
   AA.
   Thoddoo,
   and
   Th.
   Thimarafushi
   were
   announced
   in
   June.
   As
   part
   of
   our
   wider
   network
   expansion
   plans,
   additional
   Self-Service
   ATMs
   and
   banking
   services
   will
   be
   introduced
   in
   the
   coming
   months.
   § §
   
   
   
   
   
   The
   Bank
   also
   opened
   doors
   to
   the
   new
   ATM
   Centre
   in
   Male'
   located
   at
   M.
   Star
   Cloud
   (former
   Star
   Cinema
   building). Bank of Maldives www.bankofmaldives.com.mv
8. SECOND QUARTER REPORT APRIL 2020 TO JUNE 2020 07 3 .
   KEY
   FINANCIAL
   INFORMATION Income
   Statement
   (Unaudited)
   -
   Quarter
   ended
   30
   June
   2020 (All
   amounts
   in
   MVR'000
   unless
   otherwise
   stated) Q2 2020 Q1 2020 Q4 2019 Q2 2019 551,105 685,483 836,490 639,974 Interest Income and Similar Income 436,461 439,541 563,724 406,511 Interest Expense and Similar Charges (38,481) (40,814) (62,396) (36,766) 397,980 398,727 501,328 369,745 Fee and Commission Income 94,759 216,094 236,332 192,583 Fee and Commission Expense (39,189) (80,560) (96,742) (76,276) Net Fee and Commission Income 55,570 135,534 139,590 116,307 19,885 29,848 36,434 40,880 473,435 564,109 677,352 526,932 (113,541) (136,559) (172,490) (132,633) (58,459) (71,987) (98,152) (68,421) (1,340) (4,236) (7,600) (4,824) (53,742) (60,336) (66,738) (59,388) 359,894 427,550 504,862 394,299 (214,302) (28,695) (149,243) (49,341) 145,592 398,855 355,619 344,958 (39,310) (107,691) (69,393) (93,139) 106,282 291,164 286,226 251,819 79 216 213 187 Net Assets Per Share 1,339 1,319 1,265 1,185 Cash Flow Per Share (1) 0.36 (50) (216) Gross Income Net Interest Income Other Operating Income Total Operating Income Operating Expenses Personnel Expenses Marketing and CSR Expenses Other Operational and Administration Expenses Operating Profit (Profit before Provisions) Provision for Bad and Doubtful Debts Profit Before Tax Income Tax Expense Net Profit for Quarter Basic Earnings Per Share (annualised) Bank of Maldives www.bankofmaldives.com.mv
9. 08 SECOND QUARTER REPORT APRIL 2020 TO JUNE 2020 Statement
   of
   Financial
   Position
   (Unaudited)
   -
   As
   at
   30
   June
   2020 (All
   amounts
   in
   MVR'000
   unless
   otherwise
   stated) 30 Jun 2020 31 Mar 2020 31 Dec 2019 Audited 7,773,747 7,237,085 6,544,214 13,798,014 13,716,863 13,366,916 209,688 209,688 209,426 6,224,631 5,787,487 5,135,871 Property, Plant and Equipment 551,754 551,428 528,164 Right-of-use Assets 176,321 176,321 176,321 Other Assets 547,344 315,117 316,906 Total Assets 29,281,499 27,993,989 26,277,818 Deposits 19,916,426 18,656,291 17,343,942 Borrowings 746,356 948,264 988,406 Lease Liabilities 155,143 155,143 155,143 Other Liabilities 1,259,435 1,136,434 983,634 22,077,360 20,896,132 19,471,125 269,096 269,096 269,096 93,000 93,000 93,000 Retained Earnings 1,440,093 1,333,811 1,042,647 Other Reserves 5,401,950 5,401,950 5,401,950 Total Shareholders' Equity 7,204,139 7,097,857 6,806,693 Total Equity and Liabilities 29,281,499 27,993,989 26,277,818 Cash, Short Term Funds & Balances with MMA Loans and Advances Financial Investments - FVOCI Financial Investments - Amortized Cost Total Liabilities Share Capital Share Premium Nandana Senevirathne Chief Financial Officer Timothy Sawyer CEO & Managing Director Ibrahim Mohamed Chairperson, Audit & Risk Management Committee
10. SECOND QUARTER REPORT APRIL 2020 TO JUNE 2020 09 Statement
    of
    Changes
    in
    Equity
    (Unaudited)
    -
    Quarter
    ended
    30
    June
    2020 (All
    amounts
    in
    MVR'000
    unless
    otherwise
    stated) Balances as at 1 October 2019 Share Capital Retained Earnings Other Reserves Total 362,096 1,726,015 4,382,800 6,470,911 (+) Net profit for the quarter - 286,226 - 286,226 Transfer to general reserve - (973,115) 973,115 - Movement in other reserves - 3,520 46,035 49,555 362,096 1,042,647 5,401,950 6,806,693 - 291,164 - 291,164 362,096 1,333,811 5,401,950 7,097,857 - 106,282 - 106,282 362,096 1,440,093 5,401,950 7,204,139 Balances as at 31 December 2019 (+) Net profit for the quarter Balances as at 31 March 2020 (+) Net profit for the quarter Balances as at 30 June 2020
11. SECOND QUARTER REPORT APRIL 2020 TO JUNE 2020 10 Statement
    of
    Cash
    Flows
    (Unaudited)
    -
    Quarter
    ended
    30
    June
    2020 (All
    amounts
    in
    MVR'000
    unless
    otherwise
    stated) Q2 2020 Q1 2020 Q4 2019 Q2 2019 Cash Flows from Operating Activities 365,598 481,965 399,295 258,156 Changes in Operating Assets and Liabilities 284,483 234,123 (225,293) (1,340,762) Cash Flows from Investing Activities (453,952) (687,076) (398,872) (34,490) Cash Flows from Financing Activities (201,909) (27,085) (43,549) (43,563) (5,780) 1,927 (268,419) (1,160,659) Net increase/ (decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at beginning of Quarter 1,756,304 1,754,377 2,022,796 2,492,904 Cash and Cash Equivalents at end of Quarter 1,750,524 1,756,304 1,754,377 1,332,245
12. SECOND QUARTER REPORT APRIL 2020 TO JUNE 2020 11 4 .
    INVESTOR
    INFORMATION There
    were
    no
    shares
    traded
    during
    the
    reporting
    period. 5.
    GOVERNANCE
    
    5.1
    Frequency
    of
    Board
    Meetings The
    number
    of
    meetings
    held
    by
    the
    Board
    of
    Directors
    and
    its
    sub-committees
    during
    the
    second
    quarter
    of
    2020
    were
    as
    follows: No. of Meetings Board of Directors 06 (Six) Board Credit Committee 03 (Three) Audit & Risk Management Committee 03 (Three) Appointment & Remuneration Committee 01 (One) Nomination Committee 01 (One) Corporate Governance Committee* 01 (One) *New Committee formed on 28th June 2020 5.2
    
    Key
    Activities
    carried
    out
    by
    the
    Board
    &
    Board
    Committees §
    
    
    
    
    
    
    Reviewed
    and
    approved
    the
    Bank's
    financial
    statements
    for
    Quarter
    1
    2020. §
    
    
    
    
    
    
    Reviewed
    the
    Risk
    Management
    Report
    for
    Quarter
    1
    2020.
    §
    
    
    
    
    
    
    Reviewed
    and
    renewed
    the
    Bank's
    Insurance
    Policies. §
    Reviewed
    the
    External
    Auditor's
    Management
    Letter
    2019
    and
    Report
    on
    Reliability
    of
    Internal
    Controls.
    §
    
    
    
    
    
    Reviewed
    proposal
    received
    for
    appointment
    of
    External
    Auditors
    for
    the
    year
    2020. §
    
    
    
    
    
    Reviewed
    the
    Custodian
    Compliance
    Report
    2019.
    §
    
    
    
    
    
    Reviewed
    and
    discussed
    Board
    evaluation
    results. §
    
    
    
    
    
    Reviewed
    the
    Non-Performing
    Assets
    and
    Loan
    Portfolio
    Report
    for
    Quarter
    1
    2020. §
    
    
    
    
    
    Reviewed
    AR,
    NC
    and
    ARM
    Committee
    Report
    for
    Quarter
    1
    2020. §
    
    
    Reviewed
    and
    discussed
    the
    remedial
    actions
    taken
    by
    the
    Bank
    in
    terms
    of
    Business
    Continuity
    Plans,
    
    Liquidity
    and
    Credit
    Management
    due
    to
    the
    global
    Covid-19
    pandemic. §
    
    
    
    
    
    Reviewed
    and
    discussed
    Nominee
    Directors
    and
    Public
    Directorship
    Candidates. §
    
    
    
    
    
    Reviewed
    and
    approved
    the
    Fraud
    Risk
    Management
    Policy. §
    
    
    
    
    
    Reviewed
    and
    discussed
    moratorium
    for
    BML
    Islamic
    facilities. §
    
    
    
    
    
    Established
    a
    new
    Sub-Committee
    of
    the
    Board
    of
    Directors,
    named
    Corporate
    Governance
    Committee
    and
    appointed
    Mr.
    Ahmed
    Mohamed
    as
    Chairperson
    of
    the
    Committee. Bank of Maldives www.bankofmaldives.com.mv
13. SECOND QUARTER REPORT APRIL 2020 TO JUNE 2020 12
    5.3 Changes
    in
    the
    Board
    of
    Directors As
    per
    the
    Articles
    of
    Association
    of
    the
    Bank,
    the
    Board
    shall
    consist
    of
    11
    members,
    which
    includes
    08
    Nominee
    Directors
    and
    03
    Elected
    Directors.
    Following
    the
    36th
    AGM
    held
    on
    30th
    July
    2019,
    the
    newly
    appointed
    Board
    now
    consists
    of
    09
    Directors
    with
    02
    Nominee
    Director
    position
    being
    vacant. Name of Director Category Designation Respective Committee 01 Mr. Timothy Sawyer Nominee Director Executive & Non-Independent CEO & MD BCC 02 Ms. Sana Mansoor Nominee Director Non-Executive & Independent Director Chairperson of AR Committee ARM, AR, BCC & CG 03 Mr. Hawwa Safna Nominee Director Non-Executive & Independent Director Chairperson of NC Committee AR, NC, & BCC 04 Ms. Juwairiya Saeed Nominee Director Non-Executive & Non-Independent Director ARM, AR, NC & CG 05 Mr. Najeem Ibrahim Zakariyya Nominee Director Non-Executive & Independent Director ARM. NC, BCC & CG 06 Mr. Hussain Thoufeeq Ali Nominee Director Non-Executive & Non-Independent Director AR & NC 07 Mr. Ibrahim Mohamed Elected Director Non-Executive & Independent Director Chairperson of ARM Committee ARM, BCC & CG 08 Mr. Mohamed Abdul Sattar Elected Director Non-Executive & Independent Director ARM, AR & BCC 09 Mr. Ahmed Mohamed Elected Director Non-Executive & Independent Director Chairperson of CG Committee NC, BCC & CG BCC = Board Credit Committee; AR = Appointment & Remuneration Committee; NC = Nomination Committee; ARM = Audit & Risk Management Committee CG = Corporate Governance Committee 6.
    SHAREHOLDING
    STRUCTURE
    During
    the
    reporting
    period
    no
    major
    changes
    were
    noted
    in
    the
    
    shareholding
    of
    the
    Bank. 7.
    MATERIAL
    TRANSACTIONS
    During
    the
    reporting
    period
    no
    material
    transactions
    were
    conducted
    with
    a
    Director
    or
    Associate,
    or
    a
    Substantial
    Shareholder
    or
    Associate
    other
    than
    those
    conducted
    under
    ordinary
    course
    of
    business. Bank of Maldives www.bankofmaldives.com.mv
14. SECOND QUARTER REPORT APRIL 2020 TO JUNE 2020 13 8 .
    CORPORATE
    SOCIAL
    RESPONSIBILITY We
    are
    committed
    to
    running
    BML
    as
    a
    sustainable
    and
    responsible
    business,
    working
    to
    make
    a
    difference
    for
    our
    customers,
    communities
    and
    colleagues,
    whilst
    achieving
    sustainability
    through
    our
    operations,
    maintaining
    robust
    risk
    management
    and
    governance.
    
    Under
    the
    'Aharenge
    Bank'
    program,
    we
    continue
    to
    invest
    in
    our
    community,
    supporting
    initiatives
    in
    the
    areas
    of
    education,
    sports,
    environment
    and
    community
    development.
    
    During
    the
    quarter,
    we
    began
    donations
    of
    personal
    protection
    equipment
    to
    IGMH's
    Pediatrics
    department
    with
    a
    plan
    to
    support
    8
    more
    hospitals.
    We
    worked
    with
    Advocating
    for
    the
    Rights
    of
    Childrens'
    ARC
    AID
    campaign,
    supporting
    the
    provision
    of
    food
    packages
    to
    115
    children
    in
    need
    during
    the
    COVID-19
    pandemic.
    To
    increase
    awareness
    on
    COVID-19,
    we
    continue
    to
    utilize
    our
    billboards
    and
    messaging
    at
    our
    branches
    and
    ATMs
    across
    Maldives.
    The
    Bank
    took
    a
    number
    of
    proactive
    measures
    to
    provide
    banking
    services
    and
    support
    for
    customers
    due
    to
    COVID-19
    pandemic.
    We
    introduced
    a
    6-month
    moratorium
    for
    loans
    and
    financing,
    introduced
    additional
    facilities
    to
    businesses
    for
    working
    capital
    requirements
    and
    helped
    the
    government
    administer
    its
    Recovery
    Scheme
    for
    businesses.
    We
    operated
    within
    our
    Business
    Continuity
    Plan
    to
    ensure
    our
    customers
    across
    the
    Maldives
    had
    access
    to
    banking
    services,
    including
    the
    management
    of
    ATMs,
    providing
    uninterrupted
    payroll,
    local
    and
    international
    money
    transfers
    as
    well
    as
    supporting
    online
    payments
    and
    card
    deliveries.
    Our
    topmost
    priority
    is
    the
    safety
    of
    our
    staff
    and
    customers.
    To
    minimize
    physical
    contact,
    many
    of
    our
    services
    were
    moved
    online,
    seamless
    work
    from
    home
    arrangements
    were
    made
    and
    we
    supported
    vendors
    adopt
    to
    cashless
    payments 9.
    CORPORATE
    GOVERNANCE
    COMPLIANCE The
    Bank
    is
    committed
    to
    achieving
    high
    standards
    of
    corporate
    conduct
    and
    in
    this
    regard,
    recognizes
    the
    importance
    of
    having
    in
    place
    a
    set
    of
    well-defined
    corporate
    governance
    practices
    and
    processes
    to
    enhance
    corporate
    performance
    and
    accountability.
    During
    the
    quarter,
    the
    Bank
    worked
    as
    always
    to
    achieve
    compliance
    with
    the
    provisions
    of
    its
    Corporate
    Governance
    Code
    which
    articulates
    best
    corporate
    governance
    practices.
    The
    Bank
    has
    also
    complied
    with
    the
    provisions
    of
    its
    internal
    policies
    and
    procedures
    which
    govern
    its
    day
    to
    day
    operations. 10.
    REPORTING
    COMPLIANCE This
    report
    has
    been
    prepared
    taking
    into
    account
    the
    Capital
    Market
    Development
    Authority's
    Minimum
    Criteria
    for
    Periodic
    Reporting
    for
    Listed
    Companies. Bank of Maldives www.bankofmaldives.com.mv
15. www .bankofmaldives.com.mv