Bank of Maldives: Financial Statements - 31 March 2019

Transcription

1. FIRST QUARTER REPORT January to March 2019
2. FIRST QUARTER REPORT JANUARY TO MARCH 2019 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. FIRST QUARTER REPORT JANUARY TO MARCH 2019 ONE BANK IS INVESTING IN MALDIVES 265 ,000 CUSTOMERS 37 BRANCHES IN ALL 20 ATOLLS 102 ATMs IN ALL 20 ATOLLS 277 CASH AGENTS ON 165 ISLANDS 5,400 POS MERCHANTS 42 SELF SERVICE BANKING CENTRES 2,000 DHONI BANKING TRIPS MVR 12 BILLION LOANS TO INDIVIDUALS & BUSINESSES MVR 16 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. FIRST QUARTER REPORT JANUARY TO MARCH 2019 03 Our
   Business
   Strengths Solid
   Financial
   Platform
   Deposit base MVR 16 billion Assets MVR 25 billion Strong capital position well above regulatory requirement Strong
   Customer
   Base 265,000 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. FIRST QUARTER REPORT JANUARY TO MARCH 2019 02 03 03 23 OUR NETWORK 02 23 04 24 02 02 24 03 04 03 22 19 02 02 02 03 03 02 04 03 08 50 09 13 14 13 BRANCH 04 ATM CASH AGENT 10 SELF SERVICE BANKING CENTRE 10 16 18 02 03 02 ONE BANK IS INVESTING IN MALDIVES 03 02 04 20 04 08 02 02 19 03 02 07 03
6. FIRST QUARTER REPORT JANUARY TO MARCH 2019 TABLE
   OF
   CONTENTS Bank of Maldives 06 SUMMARY 10 GOVERNANCE 06 BUSINESS
   DEVELOPMENTS 12 CORPORATE
   GOVERNANCE
   COMPLIANCE 07 KEY
   FINANCIAL
   INFORMATION 12 REPORTING
   COMPLIANCE 10 INVESTOR
   INFORMATION
   www.bankofmaldives.com.mv 05
7. FIRST QUARTER REPORT JANUARY TO MARCH 2019 06 1 .
   SUMMARY Financials
   Results
   for
   the
   first
   quarter
   of
   2019
   were
   positive
   with
   Profit
   Before
   Tax
   (PBT)
   of
   MVR
   379
   million,
   up
   6%
   on
   the
   same
   period
   last
   year
   despite
   higher
   funding
   costs.
   Operating
   profit
   was
   also
   up
   4%
   versus
   Q1
   2018.
   Total
   assets
   grew
   by
   almost
   MVR
   2
   billion
   as
   business
   volumes
   were
   healthy
   across
   key
   sectors
   and
   loan
   book
   quality
   was
   robust.
   Capital
   and
   liquidity
   ratios
   finished
   the
   quarter
   well
   in
   excess
   of
   regulatory
   requirements. 2.
   BUSINESS
   DEVELOPMENTS §
   In
   January,
   we
   launched
   our
   new
   BML
   Islamic
   Savings
   and
   Investment
   Deposit
   Accounts.
   The
   products
   are
   based
   on
   the
   concept
   of
   Wakala
   where
   
   customers'
   savings
   are
   invested
   in
   Shari'ah
   compliant
   financing
   to
   create
   the
   best
   possible
   returns. §
   In
   February,
   we
   announced
   positive
   changes
   to
   our
   Personal
   Loans
   portfolio
   to
   meet
   the
   growing
   demand
   of
   our
   customers.
   Changes
   were
   brought
   to
   Lui
   Express
   loan
   and
   the
   old
   Lui
   Loan
   was
   amended
   and
   introduced
   as
   the
   Lui
   Micro
   Loan.
   The
   existing
   BML
   Lifestyle
   Loan
   was
   also
   further
   enhanced. §
   Also
   in
   February,
   we
   stepped
   up
   our
   support
   to
   businesses
   with
   the
   opening
   of
   the
   Business
   Centre
   in
   Addu
   City,
   the
   first
   in
   a
   series
   of
   dedicated
   Business
   Centres
   that
   will
   open
   throughout
   the
   country.
   Dedicated
   Relationship
   Managers
   at
   the
   Business
   Centre
   will
   provide
   support
   for
   SMEs
   on
   a
   range
   of
   business
   banking
   requirements.
   To
   small
   entrepreneurs
   and
   small
   businesses,
   we
   also
   removed
   the
   set-up
   fee
   and
   monthly
   maintenance
   fee
   for
   the
   BML
   Payment
   Gateway
   to
   facilitate
   the
   expansion
   of
   e-commerce
   in
   the
   country.
   § §
   
   
   
   
   As
   an
   initiative
   to
   further
   higher
   education
   in
   the
   banking
   and
   finance
   sector,
   we
   launched
   “BML
   Riveli”
   in
   February
   through
   which
   the
   Bank
   will
   launch
   a
   Diploma
   in
   Banking
   and
   Finance
   in
   association
   with
   Villa
   College.
   During
   the
   month,
   we
   also
   received
   the
   coveted
   “Excellence
   in
   Training
   and
   Development
   Award:
   An
   Overall
   Award
   for
   Best
   Results
   Based
   Training”
   from
   the
   World
   HRD
   Congress
   at
   the
   6th
   Global
   Training
   and
   Development
   Leadership
   Awards,
   for
   establishing
   a
   culture
   of
   learning
   and
   implementing
   policies
   to
   develop
   and
   retain
   talent.
   
   §
   
   
   
   
   As
   part
   of
   our
   investment
   program,
   we
   also
   opened
   a
   new
   branch
   with
   Self
   Service
   Banking
   Centre
   in
   Gaafu
   Dhaalu
   atoll
   Gadhdhoo.
   These
   new
   facilities
   will
   support
   local
   individuals
   and
   businesses
   to
   make
   deposits,
   payments
   and
   transfers
   on
   a
   24/7
   basis.
   Under
   the
   'Aharenge
   Bank'
   program,
   we
   launched
   the
   Aharenge
   Bank
   Community
   Fund,
   a
   program
   to
   empower
   individuals
   to
   contribute
   to
   their
   communities
   through
   sustainable
   projects.
   We
   also
   began
   our
   nationwide
   program
   to
   deliver
   60
   motorized
   wheelchairs
   for
   mobility-impaired
   individuals,
   supported
   community
   organizations
   such
   as
   the
   Thalassemia
   Society,
   Women
   in
   Tech
   and
   Family
   Legal
   Clinic,
   and
   celebrated
   the
   Global
   Money
   Week
   to
   promote
   financial
   literacy
   across
   the
   country. § §
   
   
   
   
   
   One
   of
   the
   most
   prestigious
   events
   of
   the
   month
   was
   the
   launch
   of
   the
   Masveriyaa
   Card
   and
   Digital
   Wallet
   at
   a
   special
   ceremony
   held
   in
   Gaafu
   Alifu
   Kooddoo.
   The
   new
   product
   will
   allow
   fishermen
   to
   conveniently
   make
   transactions
   through
   a
   unique
   card
   linked
   to
   a
   digital
   wallet. § §
   
   
   
   
   
   In
   March,
   our
   Board
   of
   Directors
   resolved
   to
   propose
   for
   shareholder
   approval
   at
   the
   next
   Annual
   General
   Meeting
   a
   full
   year
   dividend
   of
   MVR
   129,166,080
   amounting
   to
   MVR
   24
   per
   share
   for
   the
   financial
   year
   2018.
   This
   is
   an
   increase
   of
   9%
   over
   the
   amount
   paid
   for
   the
   prior
   year
   and
   would
   represent
   the
   Bank's
   highest
   ever
   dividend
   payout. Bank of Maldives www.bankofmaldives.com.mv
8. FIRST QUARTER REPORT JANUARY TO MARCH 2019 07 3 .
   KEY
   FINANCIAL
   INFORMATION Income
   Statement
   (Unaudited)
   -
   Quarter
   ended
   31
   March
   2019 (All
   amounts
   in
   MVR'000
   unless
   otherwise
   stated) Q1 2019 Q1 2018 Q4 2018 642,944 613,584 696,184 Interest Income and Similar Income 388,170 370,628 463,990 Interest Expense and Similar Charges (36,132) (29,925) (42,587) 352,038 340,703 421,403 Fee and Commission Income 228,058 217,116 207,771 Fee and Commission Expense (91,737) (84,262) (83,467) Net Fee and Commission Income 136,321 132,854 124,304 26,716 25,840 24,423 Total Operating Income 515,075 499,398 570,130 Operating Expenses (109,529) (110,699) (162,895) 405,546 388,699 407,235 (26,597) (32,533) 142,052 378,949 356,166 549,287 (102,316) (96,207) (218,934) 276,633 259,960 330,353 206 193 246 Gross Income Net Interest Income Other Operating Income 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 FIRST QUARTER REPORT JANUARY TO MARCH 2019 Statement
   of
   Financial
   Position
   (Unaudited)
   -
   As
   at
   31
   March
   2019 (All
   amounts
   in
   MVR'000
   unless
   otherwise
   stated) 31 Mar 2019 31 Mar 2018 31 Dec 2018 Audited 6,876,822 5,617,587 5,075,501 12,404,535 12,245,896 12,198,904 144,526 123,483 144,526 4,808,902 4,362,658 4,796,577 - 10 - Property, Plant and Equipment 425,180 414,867 409,976 Other Assets 274,113 261,934 347,619 Total Assets 24,934,078 23,026,435 22,973,103 Deposits 16,903,491 15,418,891 15,280,223 797,453 840,812 921,761 1,109,325 958,654 923,942 18,810,269 17,218,357 17,125,926 269,096 269,096 269,096 93,000 93,000 93,000 5,761,713 5,445,982 5,485,081 Total Shareholders' Equity 6,123,809 5,808,078 5,847,177 Total Equity and Liabilities 24,934,078 23,026,435 22,973,103 Cash, Short Term Funds & Balances with MMA Loans and Advances Financial Investments - FVOCI Financial Investments - Amortized Cost Investments in Subsidiaries Borrowings Other Liabilities Total Liabilities Share Capital Share Premium Reserves Nandana Senevirathne Chief Financial Officer Aishath Noordeen In-charge of the Bank Ibrahim Mohamed Chairperson, Audit & Risk Management Committee
10. FIRST QUARTER REPORT JANUARY TO MARCH 2019 09 Statement
    of
    Cash
    Flows
    (Unaudited)
    -
    Quarter
    ended
    31
    March
    2019 (All
    amounts
    in
    MVR'000
    unless
    otherwise
    stated) Q1 2019 Q1 2018 Q4 2018 Cash Flows from Operating Activities 419,532 (3,774) 364,446 Changes in Operating Assets and Liabilities 874,740 (337,266) 547,449 (9,352) (1,373) (230,604) (124,308) 51,933 (132,795) Net increase in Cash and Cash Equivalents 1,160,612 (290,479) 548,496 Cash and Cash Equivalents at beginning of Quarter 1,332,292 1,322,853 783,796 Cash and Cash Equivalents at end of Quarter 2,492,904 1,032,374 1,332,292 Cash Flows from Investing Activities Cash Flows from Financing Activities
11. FIRST QUARTER REPORT JANUARY TO MARCH 2019 10 4 .
    INVESTOR
    INFORMATION Highest Traded Price MVR 250 Lowest Traded Price MVR 150 MVR 203.28 Weighted Average Traded Price Market Capitalization MVR 1,345,480,000 Price Earnings Ratio 1.22 Dividend Yield 8.8% 5.
    GOVERNANCE
    
    5.1
    Frequency
    of
    Board
    Meetings The
    number
    of
    meetings
    held
    by
    the
    Board
    of
    Directors
    and
    its
    sub-committees
    during
    the
    first
    quarter
    of
    2019
    were
    as
    follows: No. of Meetings 03 (Three) Board of Directors 00 (Zero) Board Credit Committee 10 (Ten) Audit & Risk Management Committee Appointment, Nomination & Remuneration Committee 37 (Thirty Seven) 5.2
    
    Key
    Activities
    carried
    out
    by
    the
    Board
    &
    Board
    Committees §
    Reviewed
    and
    approved
    the
    Bank's
    audited
    financial
    statements
    for
    the
    year
    ended
    31st
    December
    2018.
    §
    Reviewed
    and
    approved
    the
    Bank's
    financial
    statements
    for
    Quarter
    4
    2018.
    §
    Reviewed
    the
    Risk
    Management
    Report
    for
    Quarter
    4
    2018. §
    Reviewed
    the
    Non-Performing
    Assets
    and
    Loan
    Portfolio
    Report
    for
    Quarter
    4
    2018.
    §
    
    
    
    
    
    Reviewed
    the
    report
    on
    the
    activities
    of
    the
    Internal
    Audit
    function
    during
    Quarter
    4
    2018. §
    Reviewed
    and
    approved
    the
    proposed
    final
    dividend
    for
    2018. §
    Reviewed
    ANR
    and
    ARM
    Committee
    Report
    for
    2018. §
    Reviewed
    the
    Procurement
    Committee
    Report
    for
    the
    second
    half
    of
    2018. §
    Reviewed
    and
    approved
    the
    Internal
    Audit
    Plan
    2019. §
    
    
    
    
    
    Reviewed
    and
    approved
    the
    Bank's
    HR
    Policy.
    §
    
    
    
    
    
    Reviewed
    and
    approved
    Corporate
    (Staff)
    Health
    Insurance
    Scheme
    2019.
    §
    
    
    
    
    
    Carried
    out
    the
    recruitment
    process
    for
    one
    Executive
    Committee
    member.
    Bank of Maldives www.bankofmaldives.com.mv
12. FIRST QUARTER REPORT JANUARY TO MARCH 2019 11
    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.
    The
    quarter
    began
    and
    ended
    with
    a
    total
    of
    10
    Directors
    in
    the
    Board
    composition
    with
    01
    Nominee
    Director
    position
    vacant
    at
    present. Name of Director Category Designation Respective Committee 01 Ms. Saeeda Umar Nominee Director Non-Executive & Independent Chairperson BCC 02 Mr. Mohamed Shareef Nominee Director Executive & Non-Independent Director BCC 03 Mr. Ibrahim Mohamed Elected Director Non-Executive & Independent Director Chairperson of ARM Committee BCC, ANR & ARM 04 Mr. Mohamed Abdul Sattar Elected Director Non-Executive & Independent Director Chairperson of ANR Committee BCC, ANR & ARM 05 Mr. Rabih Mohamed Nominee Director Non-Executive & Non-Independent Director ARM 06 Mr. Abdul Haris Nominee Director Non-Executive & Non-Independent Director ANR 07 Mr. Mohamed Luveiz Nominee Director Non-Executive & Independent Director ANR & ARM 08 Ms. Ibthishama Ahmed Saeed Elected Director Non-Executive & Independent Director BCC & ANR 09 Ms. Aishath Arsha Nominee Director Non-Executive & Independent Director BCC & ARM 10 Ms. Hawwa Safna Nominee Director Non-Executive & Non-Independent Director - BCC = Board Credit Committee; ANR = Appointment, Nomination & Remuneration Committee; ARM = Audit & Risk Management Committee Bank of Maldives www.bankofmaldives.com.mv
13. FIRST QUARTER REPORT JANUARY TO MARCH 2019 12 6 .
    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. 7.
    REPORTING
    COMPLIANCE This
    report
    has
    been
    prepared
    taking
    into
    account
    the
    Capital
    Market
    Development
    Authority's
    Circular
    on
    Minimum
    Quarterly
    Reporting
    Requirements
    for
    Listed
    Companies. Bank of Maldives www.bankofmaldives.com.mv
14. www .bankofmaldives.com.mv