Bank of Maldives (BML)'s CEO and Managing Director Tim Sawyer on Monday declared that the bank remains committed to supporting Maldivians during the unprecedented challenges brought about by the ongoing COVID-19 pandemic.
Addressing BML's shareholders at the bank's Annual General Meeting (AGM), Sawyer highlighted BML's swift response to the pandemic in the wake of the bank's strong financial performance in 2019.
“While we saw strong results last year, today we are faced with the impact of the COVID-19 pandemic. This unforeseen level of business interruption has meant a significant loss in income and the positive momentum of 2019 has not continued", said Sawyer of the impact of COVID-19 on BML, noting that the bank's profitability over the past years and strong capital position had cushioned the repercussions of the pandemic to some extent.
Highlighting BML's swift response to COVID-19, he highlighted the bank's proactive measures over the past few months to manage credit risk and support customers.
"Dollar liquidity however, continues to be a key challenge and we are working with international lending agencies to secure funding to support our customers. Through the Ministry of Finance, we obtained a EUR 20 million facility equivalent in USD from the European Investment Bank (EIB). More recently, the International Finance Corporation (IFC) announced a loan of up to $50 million for the Bank. Both facilities will provide much needed USD working capital to businesses impacted by the pandemic, especially resorts and SMEs", he said.
"Over the coming weeks, we will have difficult choices to make to sustain dollar liquidity and ensure what is available is prioritized to the right areas whether it is to meet essential import requirements or supporting priority TTs".
In his update to shareholders, Sawyer shed light on BML's financial accomplishments during the past year, which saw the bank earn up to MVR 1.7 billion in Operating Profit, a nine percent increase from 2018. However, the bank's Profit After Tax was down by five percent due to higher provision charges.
Meanwhile, the bank's total assets grew by MVR 3.3 billion, which was an increase of 14 percent, while BML also achieved a Capital Adequacy Ratio of over 40 percent, which is well above regulatory requirements.
In addition, BML welcomed over 15,000 new customers in 2019.
Some of the notable achievements of the bank last year include the establishment of BML Business Centres in capital Male’ and its reclaimed suburb Hulhumale’ as well as the southernmost atoll of Addu to support small local businesses.
The bank also launched the first Business Debit card in Maldives through Mastercard, and unveiled BML's new Islamic headquarters in Male’. BML Islamic expanded its portfolio and doubled its customer base compared to 2018.
Furthermore, BML invested heavily on technology to improve service delivery, introducing the BML Merchant Portal and mobile Point-of-Sale solutions to allow merchants to transform smartphones to accept electronic contactless payments. The bank also launched QR code payments, and upgraded its POS network to allow payment terminals to accept all forms of contactless payments.
BML further highlighted its support to charitable, educational, sports and environmental causes in 2019 with 140 CSR initiatives across the country. These projects include the 'Aharenge Bank Community Fund', equipping schools with special learning aids, and donating 60 motorised wheelchairs to people living with physical disabilities.
CEO Sawyer ended his address at the AGM by expressing his utmost appreciation to BML's staff for their hard work in 2019.
“This year has proven the commitment, dedication and positive attitude of a remarkable team who has shown nothing but resilience during this time of change", he said.
"We are privileged to serve as Dhivehinge Bank and even with the challenges ahead, we will continue to explore more opportunities to support our customers. Bank of Maldives will remain standing alongside the Maldivian people no matter what".
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