BML Delivers Strong Q1 2026 Performance, Sustaining Record-Breaking Growth

Bank of Maldives (BML) has reported a robust financial performance for the first quarter of 2026, continuing the strong momentum built over two consecutive years of record-breaking growth.

The country’s largest bank posted an operating profit of MVR 879 million and a net profit after tax of MVR 631 million for the quarter, marking a significant 27% increase compared to the same period last year.

Strong Revenue Growth and Efficiency Gains

BML’s total revenue rose to MVR 1.24 billion, supported by steady growth in core income streams. Net interest income reached MVR 796 million, while fee and commission income contributed MVR 332 million.

The bank also improved operational efficiency, with its cost-to-income ratio strengthening to 24%, down from 25% a year earlier. This reflects tighter cost control and improved operational discipline.

Balance Sheet Crosses MVR 60 Billion Milestone

In a major milestone, BML’s total assets surpassed MVR 60 billion for the first time in its history, reaching MVR 60.6 billion by the end of Q1 2026. This represents an increase of approximately MVR 4.8 billion compared to the previous quarter.

Customer deposits climbed to MVR 40.7 billion, with strong contributions from foreign currency deposits, while the loan portfolio expanded to MVR 27.6 billion, driven by lending to both individuals and businesses.

Foreign Exchange Activity Surges

During the quarter, BML facilitated USD 106.2 million in foreign exchange sales to support imports and commercial activities, representing a 142% increase in monthly averages compared to the previous year.

Additionally, the bank supported around 32,000 outward remittances and facilitated USD 119.9 million in cross-border card transactions, bringing total USD sales to over USD 226 million for the quarter.

External Pressures Impact FX Inflows

Despite the strong performance, BML noted emerging external challenges linked to geopolitical developments. Since the onset of the Middle East conflict on February 28, the bank has observed a decline in tourist spending and reservation cancellations.

As a result, net foreign currency inflows from card transactions have dropped by about one-third, while outflows for imports and services have doubled, potentially leading to a net FX deficit.

Continued Support Despite Challenges

BML said it has maintained adequate foreign currency liquidity and continues to support businesses and individuals. In the first half of April alone, the bank allocated more than USD 25 million for essential imports—more than double the amount facilitated during the same period last year.

Lending and Economic Support Accelerates

The bank disbursed MVR 4.6 billion in new loans during Q1, with total lending exceeding MVR 5 billion by mid-April. This accounts for half of the total new lending extended throughout 2025, underscoring BML’s aggressive push to support economic activity.

BML said it continues to engage key sectors including tourism, construction, and fisheries to address emerging challenges and sustain growth.

Network Expansion and Market Capitalization Growth

In April, BML expanded its physical network with six new branches across the country and deployed 90 ATMs across 70 islands, bringing its total to 253 MVR ATMs and 86 USD ATMs.

The bank also recorded a sharp increase in market capitalization following a bonus share issuance and share split approved at its Annual General Meeting. Market capitalization rose more than 7.8 times, from MVR 3.6 billion to MVR 28.2 billion by the end of Q1 2026.

Outlook

BML stated that its Q1 performance reflects strong financial fundamentals, sustained profitability, and continued balance sheet growth. While external pressures on foreign currency flows remain a concern, the bank indicated it will continue proactive management to ensure ongoing support for the economy.