Bank of Maldives (BML) saw its net profit climb in the second quarter of this year despite a slight dip in revenue compared to the first quarter, according to the bank’s latest quarterly report.
For the second quarter ending June, the national bank posted a revenue of MVR 1.5 billion. This is a decrease of MVR 89 million compared to the earnings recorded in the first quarter of the year.
The revenue decline was driven by a drop in fee and commission income, which fell from MVR 662.7 million to MVR 532.5 million. This offset the growth in interest and other related income, which rose from MVR 882.4 million to MVR 955.3 million.
Despite the lower revenue, BML managed to boost its bottom line through cost management and increased operating profits. The bank reported a net profit of MVR 646.4 million for the second quarter, surpassing the figures from both the previous quarter and the corresponding period last year.
Overall, the report reflects a robust performance for the bank. Alongside healthy revenue and profit margins, BML continues to see growth in both customer deposits and its loan portfolio.
One of the most significant changes in BML’s balance sheet this quarter was the increase in borrowings. The bank’s total debt rose from MVR 854.8 million at the end of the first quarter to over MVR 2 billion.
The report also highlighted expenditure on investment activities during the quarter, totalling MVR 4.4 billion. These investment outflows are believed to be linked to housing projects managed by the bank’s subsidiary, BML Affordable Home Leasing, through various contractors.
With these second-quarter results, BML has secured a total net profit exceeding MVR 1.2 billion for the first half of the year.
