Net profit of banks in Maldives has decreased by 17 percent during the previous year.
The Annual Report published by the Maldives Monetary Authority (MMA) stated that MVR 2.3 billion was obtained by banks as retained profit before tax reduction.
It also reported that during the year 2016, provisional amounts that were reduced from the retained profit was later applied back to the system due to major loans being fully repaid. More than 260.0 was cut from the provisional amount in the previous years and this had left a drastic effect on the banks.
Profitability ratio was at a stagnant level despite the low profit obtained by banks. An average income of 15% profit was reached while the average asset profit was 4%.
It was suggested by the MMA report, even though the amount of overdue loans and overdrafts has increased by numbers, the profit gained by interest has increased by 6% compared to last year.