Bank of Maldives (BML) has set aside its operating profit of Rf 125.87 million as loan provisions, bringing its profit for the final quarter of 2011 (October to December 2011) to zero.
BML commenced provisions on loans from second quarter of 2011, following enforcement of Central Bank Maldives Monetary Authority (MMA)’s ‘prudential regulation’ in 2009.
The bank set aside its operating profit as provisions on loans in the second and third quarters of 2011 as well, resulting in zero profit.
In the second quarter of 2011 (April to June 2011), the bank made Rf 197.4 million as revenue and Rf 139 million as profit. In the third quarter of 2011 (July to September 2011), it made Rf 152.1 million as revenue and Rf 80.4 million as profit.
Before the enforcement of loan provisions, the bank made Rf 12.2 million as profit in the first quarter of 2011 (January to March 2011). Despite zero profit due to the enforcement of loan provisions, the operating profit had been increasing monthly since then.
The bank said that the operating profit for the final quarter of 2011increased by 56% compared to the previous quarter. Against the same quarter of the year before, operating profit increased by 36%.
According to the statement published by the bank, profit had reached a “record high”.
The latest price of a BML share at the stock market is Rf 73. Capital Market Development Authority (CMDA) had fined BML Rf 10,000 for failing to meet the deadline in publishing the financial statement for the final quarter of 2011.