Bank of Maldives: First Quarter Report - March 2018

Transcription

1. FIRST QUARTER REPORT January to March 2018
2. FIRST QUARTER REPORT JANUARY TO MARCH 2018 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 2018 ONE BANK IS INVESTING IN MALDIVES 260 ,000 CUSTOMERS 34 BRANCHES IN ALL 20 ATOLLS 95 ATMs IN ALL 20 ATOLLS 277 CASH AGENTS ON 165 ISLANDS 5,000 POS MERCHANTS 35 SELF SERVICE BANKING CENTRES 2,000 DHONI BANKING TRIPS MVR 12 BILLION LOANS TO INDIVIDUALS & BUSINESSES MVR 15 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 2018 03 Our
   Business
   Strengths Solid
   Financial
   Platform
   Deposit base MVR 15 billion Assets MVR 23 billion Strong capital position well above regulatory requirement Strong
   Customer
   Base 260,000 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 2018 02 03 03 21 OUR NETWORK 02 24 04 25 02 02 25 03 19 02 02 03 02 02 04 21 02 08 48 08 13 12 13 BRANCH 04 ATM CASH AGENT 10 SELF SERVICE BANKING CENTRE 10 16 18 02 02 ONE BANK IS INVESTING IN MALDIVES 02 02 20 04 03 08 02 19 03 02 07 03
6. FIRST QUARTER REPORT JANUARY TO MARCH 2018 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 2018 06 1 .
   SUMMARY Financial
   Results
   for
   the
   first
   quarter
   of
   2018
   were
   positive
   with
   Operating
   Profit
   up
   11%
   on
   the
   same
   period
   last
   year
   due
   to
   solid
   business
   volumes
   across
   all
   key
   sectors.
   Profit
   Before
   Tax
   was
   up
   3%
   on
   Quarter
   1
   2017
   despite
   the
   higher
   level
   of
   loan
   provisioning
   required
   under
   the
   new
   accounting
   standard,
   IFRS
   9.
   Profit
   Before
   Tax
   on
   an
   underlying/like-for-like
   basis
   increased
   by
   13%.
   The
   Bank's
   loan
   book
   remained
   robust
   with
   the
   ratio
   of
   non-performing
   to
   total
   loans
   falling
   from
   4.1%
   at
   the
   end
   of
   2017
   to
   3.2%.
   
   Capital
   and
   liquidity
   ratios
   finished
   the
   quarter
   well
   in
   excess
   of
   regulatory
   requirements.
   The
   Bank's
   community
   investment
   program
   continued
   during
   the
   quarter
   and
   February
   alone
   saw
   28
   'Aharenge
   Bank'
   
   
   
   
   
   ('My
   Bank')
   events
   held
   across
   the
   country
   which
   supported
   charitable,
   educational,
   sports
   and
   environmental
   causes.
   2.
   BUSINESS
   DEVELOPMENTS §
   Over
   the
   past
   year,
   our
   Bank
   has
   been
   supporting
   the
   communities
   and
   people
   of
   Maldives
   in
   a
   structured
   and
   positive
   way
   through
   our
   Aharenge
   Bank
   program.
   As
   in
   2017,
   February
   was
   a
   particularly
   special
   month
   with
   a
   community
   event
   held
   each
   day.
   These,
   and
   other
   events
   during
   the
   first
   quarter,
   helped
   charitable,
   educational,
   sports
   and
   environmental
   causes
   throughout
   the
   country.
   Additionally,
   the
   Bank's
   staff
   raised
   significant
   funds
   for
   the
   Maldives
   Autism
   Association,
   Beautiful
   Eyes
   Down
   Syndrome
   Association
   and
   Maldives
   Association
   for
   
   
   
   
   
   
   Physical
   Disables. §
   In
   recognition
   of
   the
   positive
   impact
   the
   Aharenge
   Bank
   program
   has
   had
   on
   communities
   across
   the
   country,
   the
   Bank
   received
   the
   'Award
   for
   Investment
   in
   Communities'
   at
   the
   prestigious
   Corporate
   Maldives
   Gold
   100
   Gala,
   which
   was
   held
   in
   February. §
   The
   Bank's
   refurbished
   branch
   in
   Vilimale'
   was
   opened
   during
   the
   quarter
   and
   now
   includes
   a
   modern
   Self-Service
   Banking
   Centre
   which
   operates
   on
   a
   24/7
   basis.
   The
   quarter
   also
   saw
   new
   ATMs
   installed
   in
   Gan
   International
   Airport
   and
   Hithadhoo
   Regional
   Hospital.
   An
   additional
   72
   Cash
   Agents
   were
   added,
   bringing
   our
   total
   agent
   network
   
   
   
   
   
   
   
   to
   277. §
   As
   part
   of
   our
   commitment
   to
   deliver
   products
   which
   meet
   the
   evolving
   needs
   of
   our
   customers,
   an
   innovative
   new
   loan
   offering
   was
   launched.
   The
   'Lifestyle
   Loan'
   has
   been
   designed
   to
   provide
   easy
   access
   to
   finance
   up
   to
   
   
   
   
   
   
   
   MVR
   500,000
   to
   those
   property
   owners
   who
   receive
   a
   rental
   income
   from
   their
   property.
   §
   
   
   
   
   We
   introduced
   Online
   Applications
   for
   a
   number
   of
   key
   services
   whereby
   customers
   can
   now
   apply
   online
   to
   open
   accounts
   as
   well
   as
   to
   obtain
   credit
   cards,
   debit
   cards
   and
   personal
   loans. §
   
   
   
   
   
   In
   March,
   our
   Board
   of
   Directors
   resolved
   to
   propose
   for
   shareholder
   approval
   at
   the
   next
   Annual
   General
   Meeting
   
   
   
   
   
   (AGM)
   a
   final
   dividend
   of
   MVR
   118,402,240
   amounting
   to
   MVR
   22
   per
   share
   for
   the
   financial
   year
   2017.
   This
   is
   an
   increase
   of
   10%
   over
   the
   amount
   paid
   in
   the
   prior
   year
   and
   would
   represent
   the
   Bank's
   highest
   ever
   dividend
   payout.
   The
   AGM
   has
   been
   scheduled
   for
   Sunday,
   13th
   May
   in
   Male'. Bank of Maldives www.bankofmaldives.com.mv
8. FIRST QUARTER REPORT JANUARY TO MARCH 2018 07 3 .
   KEY
   FINANCIAL
   INFORMATION Income
   Statement
   (Unaudited)
   -
   Quarter
   ended
   31
   March
   2018 (All
   amounts
   in
   MVR'000
   unless
   otherwise
   stated) Q1 2018 Q1 2017 Q4 2017 615,734 540,992 645,276 Interest Income and Similar Income 370,628 325,157 375,264 Interest Expense and Similar Charges (29,925) (18,480) (24,361) 340,703 306,677 350,903 Fee and Commission Income 219,266 189,940 247,651 Fee and Commission Expense (84,262) (71,663) (76,094) Net Fee and Commission Income 135,004 118,277 171,557 25,840 25,895 22,361 Total Operating Income 501,548 450,849 544,821 Operating Expenses (112,849) (101,738) (161,045) 388,699 349,111 383,776 (32,533) (2,559) 112,369 356,166 346,552 496,145 (96,207) (86,640) (148,122) 259,960 259,912 348,023 193 193 259 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 2018 Statement
   of
   Financial
   Position
   (Unaudited)
   -
   As
   at
   31
   March
   2018 (All
   amounts
   in
   MVR'000
   unless
   otherwise
   stated) 31 Mar 2018 31 Mar 2017 31 Dec 2017 5,617,587 4,750,228 4,986,564 12,245,896 10,007,138 12,221,060 123,483 84,556 123,483 4,362,658 4,199,294 4,381,825 10 10 10 Property, Plant and Equipment 414,867 346,650 408,983 Other Assets 261,933 334,336 243,042 Total Assets 23,026,435 19,722,212 22,364,967 Deposits 15,418,891 13,695,687 15,202,906 Borrowings 840,812 292,007 793,602 Other Liabilities 958,654 928,889 820,341 17,218,357 14,916,583 16,816,849 269,096 269,096 269,096 93,000 93,000 93,000 5,445,982 4,443,533 5,186,022 Total Shareholders' Equity 5,808,078 4,805,629 5,548,118 Total Equity and Liabilities 23,026,435 19,722,212 22,364,967 Cash, Short Term Funds & Balances with MMA Loans and Advances Financial Investments - Available for Sale Financial Investments - Held to Maturity Investments in Subsidiaries Total Liabilities Share Capital Share Premium Reserves Nandana Senevirathne Chief Financial Officer Andrew Healy CEO & Managing Director Ibrahim Mohamed Chairperson, Audit & Risk Management Committee
10. FIRST QUARTER REPORT JANUARY TO MARCH 2018 09 Statement
    of
    Cash
    Flows
    (Unaudited)
    -
    Quarter
    ended
    31
    March
    2018 (All
    amounts
    in
    MVR'000
    unless
    otherwise
    stated) Q1 2017 Q4 2017 (3,774) 335,857 402,155 (337,266) (502,592) 312,884 Cash Flows from Investing Activities (1,373) 30,868 (374,811) Cash Flows from Financing Activities 51,933 (26,475) 70,583 (290,479) (162,342) 410,810 Cash and Cash Equivalents at beginning of quarter 1,322,853 1,041,247 912,043 Cash and Cash Equivalents at end of quarter 1,032,374 878,905 1,322,853 Q1 2018 Cash Flows from Operating Activities Changes in Operating Assets and Liabilities Net increase in Cash and Cash Equivalents
11. FIRST QUARTER REPORT JANUARY TO MARCH 2018 10 4 .
    INVESTOR
    INFORMATION Highest Traded Price MVR 320 Lowest Traded Price MVR 280 MVR 304.09 Weighted Average Traded Price Market Capitalization MVR 1,506,937,600 Price Earnings Ratio 1.45 Dividend Yield 7.1% 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
    2018
    were
    as
    follows: No. of Meetings Board of Directors 03 (Three) Board Credit Committee 02 (Two) Audit & Risk Management Committee 10 (Ten) Appointment, Nomination & Remuneration Committee 06 (Six) 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
    2017. §
    Reviewed
    and
    approved
    the
    proposed
    final
    dividend
    for
    2017. §
    Reviewed
    and
    approved
    the
    Staff
    Performance
    Bonus
    for
    2017. §
    Reviewed
    the
    Risk
    Management
    Report
    for
    Quarter
    4
    2017. §
    Reviewed
    the
    Non-Performing
    Assets
    and
    Loan
    Portfolio
    Report
    for
    Quarter
    4
    2017. §
    Reviewed
    the
    report
    on
    the
    activities
    of
    the
    Internal
    Audit
    function
    during
    Quarter
    4
    2017. §
    Reviewed
    and
    approved
    the
    Internal
    Audit
    Plan
    for
    2018. §
    Reviewed
    the
    Procurement
    Committee
    Report
    for
    the
    second
    half
    of
    2017. §
    Reviewed
    and
    approved
    the
    names
    received
    for
    Nominee
    Director
    positions
    and
    the
    applications
    received
    for
    Public
    Director
    positions
    on
    the
    Board
    of
    Directors. §
    Bank of Maldives Reviewed
    and
    approved
    the
    Corporate
    (Staff)
    Health
    Insurance
    Scheme
    for
    2018. www.bankofmaldives.com.mv
12. FIRST QUARTER REPORT JANUARY TO MARCH 2018 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's
    composition
    with
    01
    Nominee
    Director
    position
    being
    vacant.
    Name of Director Category Designation Respective Committee 01 Ms. Saeeda Umar Nominee Director Non-Executive & Independent Chairperson BCC 02 Mr. Andrew Healy Nominee Director Executive & Non-Independent CEO & MD BCC 03 Mr. Mohamed Shareef Nominee Director Executive & Non-Independent Director BCC 04 Mr. Ibrahim Mohamed Elected Director Non-Executive & Independent Director Chairperson of ARM Committee BCC, ANR & ARM 05 Mr. Mohamed Abdul Sattar Elected Director Non-Executive & Independent Director Chairperson of ANR Committee BCC, ANR & ARM 06 Mr. Rabih Mohamed Nominee Director Non-Executive & Non-Independent Director ARM 07 Mr. Abdul Haris Nominee Director Non-Executive & Non-Independent Director ANR 08 Mr. Mohamed Luveiz Nominee Director Non-Executive & Independent Director ANR & ARM 09 Ms. Ibthishama Ahmed Saeed Elected Director Non-Executive & Independent Director BCC & ANR 10 Ms. Aishath Arsha Nominee Director Non-Executive & Independent Director BCC & ARM 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 2018 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
    Authorityʼs
    Circular
    on
    Minimum
    Quarterly
    Reporting
    Requirements
    for
    Listed
    Companies. Bank of Maldives www.bankofmaldives.com.mv
14. www .bankofmaldives.com.mv