In spite of the net profit of MVR519 million made by Bank of Maldives Limited (BML) for 2011, no dividends were handed out to its the shareholders.
Instead, the bank had to set aside its profit as Loan Provision for loans which have no guarantee of repayment.
It was decided not to distribute profits to shareholders last night for a third consecutive year, at the bank’s Annual General Meeting (AGM) held at Nasandura Palace Hotel last night.
BML Chairperson Dr Abdullah Shiham Hassan said with confidence that the bank will be able to hand out dividends next year.
BML’s net profit for 2011 of MVR519 million is MVR217 million more than the company’s net profit for 2010, which was MVR302 million.
In spite of improved revenues and operating profits, the deduction of MVR511.5 million as Loan Provision as per the requirement of Maldives Monetary Authority (MMA), left the bank with zero net profit.
The bank commenced making loan provisions mid last year.
At the AGM last night, the audit report of 2011 was presented, and same as last year, PricewaterhouseCoopers was appointed as the bank’s external audit firm for this year, for MVR46,150.
Three Directors were elected to represent shareholders for this year. Mohamed Abdul Sattar of Ma. Tulip Villa, Ibrahim Mohamed of Nelam, N. Holhudhoo and Fathimath Niuma of G. Himaliyage were elected with 15182 votes each.
The eight members appointed to the Board of Directors of BML by the government were Dr Abdullah Shiham Hassan of Ma. Naibuge; Peter Horton, CEO of BML; Aishath Nooraddheen of M. Thaandheedhoshuge; Mohamed Jaish Ibrahim of Ma. Anooma; Adam Azim of M. Seenukarankaage; Ismail Shafeeu of Ma. Poppy; Hassan Shameem of Hulhumale’ Flat; and Abdullah Naseem of Karankaa Villa of Ha. Filladhoo.
The eight members are the current government representatives of the Board of Directors of BML as well.
As per normal, shareholders were given the opportunity to express their views and pose questions to the Board of Directors.
The main concern raised by the shareholders was the loss of income due to unpaid loans issued to political and other groups.
The AGM was attended by 184 shareholders.