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BML profits drop by 60 percent due to COVID-19 pandemic

Mariyam Malsa
01 February 2021, MVT 08:49
Head Office of Bank of Maldives (BML) in the capital city of Maldives. PHOTO: BANK OF MALDIVES
Mariyam Malsa
01 February 2021, MVT 08:49

Bank of Maldives (BML) on Sunday revealed that its 2020 profits had dropped by more than 60 percent compared to the previous year, as a result of the economic repercussions of the COVID-19 pandemic.

BML reported an Unaudited Profit after Tax figure of MVR 329 million for 2020, representing a steep decline from the MVR 962 million earned in 2019.

The reduction was attributed to the restructuring of BML's credit facilities, leading to fewer loan repayments.

BML introduced an unprecedented moratorium of nine months for hundreds of customers as a measure to offset the financial impact of the pandemic.

Overall, in 2020 the bank issued more than MVR 3 billion in loans and financing to support the economy, while total assets and customer deposits increased by nearly MVR 5 billion and MVR 4.6 billion respectively.

BML's liquidity and capital ratios remain solid and above regulatory limits.

"As we anticipated, the last quarter of 2020 saw our financials affected with the direct impact of COVID-19. While we faced a high degree of uncertainty over the year, our past financial strength meant we were well prepared", stated BML's CEO and Managing Director Tim Sawyer.

"Over the year, the bank also played a pivotal role in keeping the economy afloat, with uninterrupted banking services during lockdown, loan moratorium, working capital support to businesses, assisting Government with the COVID-19 Recovery Loan Scheme and securing financing support from international agencies such as EIB and IFC".

Remarking on prospects for the future, the BML CEO stated that "the year ahead will prove to be challenging as the uncertainties around the extent of economic impact of the pandemic remains to be seen".

"The bank however, is well positioned to continue to support the nation, its people and the economy".

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