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Maldives’ Bank reports decrease in 2017 profits

Nafaahath Ibrahim
07 May 2018, MVT 16:10
Aerial view of Maldives Monetary Authority (MMA). PHOTO/MIHAARU
Nafaahath Ibrahim
07 May 2018, MVT 16:10

In 2017, the profits earned by Banks operated in Maldives decreased by 17 percent.

The annual report delivered by Maldives Monetary Authority states that before tax deductions, banks in Maldives earned profits of MVR 2.3 billion.As reasoning behind stated dip in profits, the central bank offered that it had received unpaid loan payments from 2016, and thus compensated via provisions set aside for the respective loan losses. The provisions collectively amount to MVR 260.6 million from the annual revenue.

The report highlighted that although profits dropped, the ratios used to calculate profits remained fairly constant. MMA revealed that the profit is 15 percent of the average state capital and four percent of the average assets.

According to MMA, since loans and debt payments owed to the banks have increased, after deducting interest, the profits indicate an increase of six percent over 2016’s numbers.

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