The Bank closed 2025 as the most successful year in its 43-year history, and this strong momentum has carried into the new financial year.
BML
The Bank of Maldives (BML) has delivered a strong set of results for the first quarter of 2026, demonstrating continued financial resilience following two consecutive years of record-breaking performance. The Bank closed 2025 as the most successful year in its 43-year history, and this strong momentum has carried into the new financial year.
Robust Profit Growth Driven by Core Strengths
The solid growth recorded in Q1 2026 reflects the Bank’s robust financial position and ongoing improvements in asset quality. For the quarter, BML reported an operating profit of MVR 879 million and a net profit after tax of MVR 631 million, representing a significant 27% increase compared to the same period last year.
Revenue Growth and Improved Efficiency
Total revenue increased to MVR 1.24 billion, supported by steady growth in net interest income and sustained contributions from fees and commissions. Net interest income reached MVR 796 million, while fee and commission income contributed MVR 332 million.
Operational efficiency continued to improve, with the Bank’s cost-to-income ratio strengthening to 24%, compared to 25% in the previous year. This improvement reflects disciplined cost management and effective operational control. Expected Credit Losses (ECL) also remain prudently managed, in full compliance with IFRS 9 standards.
Balance Sheet Expansion and Key Milestone Achievement
The Bank’s balance sheet recorded strong growth during the quarter. Total assets reached MVR 60.6 billion at the end of Q1 2026, an increase of approximately MVR 4.8 billion compared to Q4 2025. This represents a significant milestone, marking the first time in the Bank’s history that its asset base has exceeded MVR 60 billion.
Customer deposits grew to MVR 40.7 billion, with a substantial contribution from foreign currency deposits. The Bank’s loan portfolio expanded to MVR 27.6 billion, driven by continued lending to both individuals and businesses.
Strong Capital Position
The Bank maintained a strong capital adequacy ratio throughout the quarter, reinforcing its financial resilience and supporting sustainable long-term growth while ensuring full compliance with regulatory requirements.
Foreign Exchange Support and Increased Demand
During the first quarter, the Bank facilitated the sale of USD 106.2 million to support imports of food items, essential commodities, and other commercial needs. This represents a monthly average of over USD 35.4 million, marking a significant 142% increase compared to the previous year’s monthly average of USD 14.6 million.
In addition, foreign exchange support was provided for approximately 32,000 outward remittances during the quarter.
A further USD 119.9 million was facilitated for cross-border transactions through credit and debit cards, averaging approximately USD 40 million per month. This reflects a 23% increase compared to the monthly average of the preceding year. As a result, total USD sales to businesses and individuals during Q1 2026 exceeded USD 226 million.
Emerging External Pressures on Foreign Currency Flows
Since the onset of the Middle East conflict on February 28, the Bank has observed a rise in tourist reservation cancellations and a decline in visitor spending. Consequently, foreign currency inflows from card transactions (net card inflows) have decreased by approximately one-third so far this month.
At the same time, foreign currency outflows for imports and external services have doubled. Based on these trends, the Bank expects net foreign currency outflows to significantly exceed inflows during the month.
Proactive Management and Continued Support
Despite these challenges, the Bank has effectively managed its foreign currency liquidity and remains committed to supporting both businesses and individuals.
In the first 15 days of April alone, more than USD 25 million was allocated for imports of food, essential commodities, and other commercial requirements. This exceeds the average allocation during the first quarter and is more than double the amount facilitated during the same period last year.
Foreign spending via cards has also increased significantly, reaching USD 22 million within the first 15 days of April.
Should current external pressures persist, the Bank will continue to ensure the availability of foreign currency support through necessary and temporary adjustments to sales volumes, aligned with available supply.
Supporting Key Economic Sectors
During this period, BML has been actively engaging with key sectors, including tourism, construction, fisheries, and other industries, to understand emerging challenges. The Bank continues to provide essential working capital and financing support to sustain these critical sectors.
Accelerated Lending Growth
In the first quarter alone, the Bank disbursed MVR 4.6 billion in new loans across all sectors. With an additional MVR 488 million disbursed in the first 15 days of April, total loan disbursements for the year have exceeded MVR 5 billion.
This represents half of the total new lending extended during the entirety of 2025, highlighting BML’s strong commitment to supporting local businesses and economic growth.
Continued Expansion
During April 2026, the Bank undertook a major network expansion, inaugurating six new branches in Th. Vilufushi, AA. Thoddoo, H. Dh. Hanimaadhoo, L. Hithadhoo, S. Hulhudhoo and H. Dh Kulhudhuffushi are deploying 90 ATMs across 70 islands. The launch was held at a special ceremony attended by the President of the Maldives, His Excellency Dr Mohamed Muizzu, where the 90 ATMs in 70 islands were synchronously launched. With this, the Bank has in its network 253 MVR ATMs and 86 USD ATMs.
Market Capitalization Growth Following Bonus Issue and Share Split
During the quarter, the market capitalisation of Bank of Maldives increased substantially following the bonus share issuance and share split approved at the most recent Annual General Meeting (AGM). As a result of these corporate actions, market capitalisation rose by more than 7.8 times, from MVR 3.6 billion before the AGM approval to MVR 28.2 billion as at the end of the first quarter of 2026.
Sustained Momentum into 2026
Overall, the Bank’s performance in the first quarter of 2026 reflects strong financial fundamentals, continued balance sheet growth, and sustained profitability driven by its core banking operations.
