Bank of Maldives has reported a strong financial performance for the first quarter of 2026, with profitability and balance sheet growth continuing from its record results in recent years, even as external pressures begin to weigh on foreign currency flows.
The bank recorded an operating profit of MVR 879 million and a net profit after tax of MVR 631 million for the quarter, reflecting a 27 per cent increase compared to the same period last year. Revenue rose to MVR 1.24 billion, supported by growth in both interest income and non-interest income streams, including fees and commissions.
Operational efficiency improved modestly, with the cost-to-income ratio declining to 24 per cent. At the same time, asset quality remained stable, with expected credit losses managed in line with international accounting standards.
The bank’s balance sheet expanded significantly, with total assets reaching MVR 60.6 billion, marking the first time the institution has crossed the MVR 60 billion threshold. Customer deposits grew to MVR 40.7 billion, while the loan portfolio increased to MVR 27.6 billion, reflecting continued lending to both individuals and businesses.
Foreign exchange activity also increased during the quarter. The bank facilitated USD 106.2 million in foreign currency sales to support imports and commercial needs, a substantial rise compared to the previous year. In addition, USD 119.9 million was channelled through card-based cross-border transactions, bringing total foreign currency support to over USD 226 million for the quarter.
However, emerging external risks have begun to affect foreign currency dynamics. Since late February, the bank has observed a decline in tourist spending and reservation cancellations linked to geopolitical tensions in the Middle East. As a result, foreign currency inflows from card transactions have fallen, while outflows for imports and external services have increased sharply.
Despite these pressures, the bank continued to maintain foreign currency support, allocating more than USD 25 million for imports in the first half of April alone, exceeding quarterly averages. Lending activity has also accelerated, with MVR 4.6 billion disbursed in new loans during the first quarter and total disbursements surpassing MVR 5 billion early in the second quarter.
The period also saw expansion in physical infrastructure, with new branches opened across several islands and additional ATMs deployed nationwide, increasing the bank’s reach across the country.
On the capital markets side, the bank’s market capitalisation rose significantly following a bonus share issuance and share split, increasing from MVR 3.6 billion to MVR 28.2 billion by the end of the quarter.
Overall, the results indicate that while core banking performance remains strong, external developments are beginning to shape the outlook, particularly through their impact on foreign currency availability and flows.
