Development Bank records MVR 2.2 million loss in first six months; liabilities stand at MVR 2.3 million: Audit
The government's newly established Development Bank has incurred over 3 million Rufiyaa in operational expenses, covering office rent, staff salaries, and directors' fees. While only 3 million Rufiyaa has been issued in share capital to date, the Auditor General has certified the bank's financial statements as accurate and compliant with international reporting standards.
President Dr. Mohamed Muizzu inaugurates the Development Bank of Maldives, (File Photo). | President's Office | Presidents Office
The newly established Development Bank of Maldives Limited has incurred a significant loss of MVR 2.2 million within its first six months of operation, according to the bank's inaugural financial statements.
According to an audit report released by the Auditor General's Office, the bank incurred a total loss of MVR 2,263,804 between July 21, 2024, and December 31, 2024. During this period, the bank conducted no business transactions and generated no revenue.
The primary reason for the bank's substantial loss is the surge in its operating expenses. During this period, the bank incurred 3,018,405 Rufiyaa in operating costs. The largest portion of this expenditure was attributed to various administrative expenses. Specifically, 1,130,597 Rufiyaa was spent on office rent, while 843,336 Rufiyaa was allocated for employee salaries and benefits. Additionally, the report reveals that 311,300 Rufiyaa was spent on directors' fees.
According to the financial statements, the bank's total assets stood at MVR 3,074,735 by the end of 2024. This includes MVR 2,320,134 held in cash and MVR 754,601 recorded as tax assets. The bank's liabilities are recorded at MVR 2,338,539, which comprises outstanding rent, accrued expenses, and payables to directors. After accounting for losses, the bank's remaining capital stands at MVR 736,196 out of the initial MVR 3 million capital injection provided by the government.
The audit report highlights that the bank is a 100% government-owned entity. Although the authorized share capital of the bank is set at MVR 300 million, only 30 shares have been issued to date, with a total value of MVR 3 million. Furthermore, as the government has borne the costs of developing the bank's office premises, the bank's balance sheet does not reflect any land or buildings as corporate assets.
The Auditor General has issued an "unqualified opinion" on the bank’s financial statements, confirming they were prepared accurately and in accordance with international financial reporting standards. However, the audit highlighted "other expenses" within the bank’s operational costs as a key audit matter due to their significant increase. Despite the current losses, the bank's board maintained that the institution remains a going concern with the capacity to continue operations. The bank was established under presidential decree to provide financing for economic development projects across the Maldives.
