BML reports a 60 percent loss in Q4-2020 over Covid-19

Bank of Maldives (BML) reported an Operating Profit of MVR 376 million and a net loss for the fourth quarter of 2020, a year marked by severe economic instability due to the impact of Covid-19.

BML published their financials for the fourth quarter of 2020, reporting an Operating Profit of MVR 376 million, and a net loss for the quarter overall. BML significantly restructured their credit facilities in 2020, and continue to work with the government to secure and distribute provisioning to stimulate the Maldivian economy, which was hit hard by the global Covid-19 pandemic early in 2020.

BML further reports that Unaudited Profit after Tax for the bank at the end of 2020 was MVR 329 million, which is a 60% decrease compared to that of the fourth quarter of the previous year. The bank explained that this was due to the prevailing negative impact of the Covid-19 pandemic, which has continued to staunch the bank's business and income lines over the past year.

Despite difficulties, BML notes that the bank continued lending operations, with over MVR 3 billion having been issued in loans and financing to support the economy post Covid-19. In addition to this, BML recorded that their Total Assets grew by almost MVR 5 billion, along with an increase of MVR 4.6 billion being observed in customer deposits. Bank of Maldives assures that their liquidity and capital ratios remain solid and above regulatory limits.

Bank of Maldives CEO Tim Sawyer acknowledged that their finances had been impacted directly by the Covid-19 pandemic, and that the year had been marked by a high degree of uncertainty. He also noted that BML played a pivotal role in sustaining the economy through the initial impact of Covid-19 by issuing loans to keep companies afloat while continuously providing banking services to the Maldives. He remarked that BML had been issuing loan moratoriums and working capital support to businesses, assisting the Maldivian government with the Covid-19 Recovery Loan Scheme and securing financing support from international agencies such as EIB and IFC.

BML also had many successes in the final quarter of 2020, including having announced positive changes to its loan and financing portfolio with reduced borrowing rates and more flexible terms, in addition to establishing various services in different islands all over the country.

BML CEO Tim Sawyer also acknowledged that the year ahead will prove to be challenging due to uncertainties around the economic impact of the global pandemic. He went on to reassure BML customers that the bank is well positioned to continue providing services to and supporting the nation, its citizens, and the Maldivian economy in the months ahead.