THIRD QUARTER REPORT July to September 2018

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Lionel Stafford
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1 THIRD QUARTER REPORT July to September 2018

2 01 BankofMaldives(BML)istheleadingfinancialinstitutioninMaldives.Weareafullservicebankengagingacrossthecompletespectrumofpersonal,businessand corporatefinancialservices. We are privileged to touch the lives of almost every citizen and business in Maldives through our extensive network of branches, agents, relationship managers and online banking facilities. This privilege brings with it great responsibilitywhichwetakeextremelyseriously. Weunderstandthatweplayapivotalroleasanengineofgrowthandapartnerfor successforthousandsofindividuals,familiesandbusinesses.ouraimistoactively participate in community development and to create long-term value for our shareholders. Ourbusinessisbuiltonaclearandcompellingstrategyfocusedon3strategic pillars of Customer Service, Support for Business and Financial Inclusion. Our strategicfoundationsarepeopleexcellenceandrobustriskmanagement. We are firmly focused on being a professionally managed, customer-oriented organizationwhichfollowsinternationalbestpractices. Bank of Maldives

3 ONE BANK IS INVESTING IN MALDIVES 260,000 CUSTOMERS 34 BRANCHES IN ALL ATMs IN ALL CASH AGENTS ON 165 ATOLLS ATOLLS 5,000 POS MERCHANTS ISLANDS 37 SELF SERVICE BANKING CENTRES 2,000 DHONI BANKING TRIPS MVR 13 BILLION LOANS TO INDIVIDUALS & BUSINESSES MVR 14 BILLION CUSTOMER DEPOSITS MVR 1 BILLION GOVERNMENT LOAN SCHEMES 950 JOBS WITH 1/3 IN ATOLLS 99% OF STAFF ARE MALDIVIANS THAT BANK IS BANK OF MALDIVES

4 03 OurBusiness Strengths SolidFinancialPlatform Deposit base MVR 14 billion Assets MVR 23 billion Strong capital position well above regulatory requirement StrongCustomerBase 260,000 customers Leading market share in Retail, Corporate and SME segments Market leader in Self Service Banking with largest number of online and ATM users LeadershipinInnovation First to launch POS services in Maldives First to launch Internet and Mobile Banking First to launch cash and cheque deposit machines LeadershipinService Delivery Largest network of Branches, Agents, ATMs and POS terminals in Maldives Exclusive acquirer and issuer of American Express cards in Maldives Principal member in the Maldives for Visa and MasterCard Experiencedand DedicatedTeam Largest employer in the banking sector 99% of our employees are locals with almost one third employed in the atolls Strong executive leadership team with experience across many countries and banking markets

5 OUR NETWORK BRANCH 13 ATM CASH AGENT SELF SERVICE BANKING CENTRE ONE BANK IS INVESTING IN MALDIVES

6 05 TABLEOFCONTENTS 06 SUMMARY 1 0 GOVERNANCE 06 BUSINESSDEVELOPMENTS 1 2 CORPORATEGOVERNANCECOMPLIANCE 0 7 KEYFINANCIALINFORMATION 1 2 REPORTINGCOMPLIANCE 1 0 INVESTORINFORMATION Bank of Maldives

7 06 1.SUMMARY Financial Results for thethirdquarterof2018werepositivewithprofitbeforetaxofmvr365million,up10%onthe secondquarterand11%aheadofthesameperiodlastyear.yeartodatepbtatmvr1,053millionisup14%onthe equivalentperiodin2017. Whilefundingandinvestmentcostsincreased,solidbusinessvolumesacrossallkeybusinesssegments,togetherwith lowlevelsofnon-performingloans,resultedinanoutturnthatbeatexpectations.ytdoperatingprofitisup9%onthe equivalentperiodin2017,whileprovisionsforbadanddoubtful loansreducedbymvr40millionasthebank'sloan book quality continued its improving trend. Capital and liquidity ratios finished the period well above regulatory requirements. 2.BUSINESSDEVELOPMENTS In July, we launched an innovative Online International Money Transfer service that allows customers to convenientlymakeoverseastransfersofuptousd3,000perdayusingtheirmobilesmartphones.fundscanbesent to any authorised overseas cash agent, bank account or digital wallet across a wide network of participating countries-includingthosemostfrequentedbymaldiviansforstudies,medicalvisitsandtourism. AlsoinJuly,BankofMaldivesreceivedthehighlycoveted Asia'sBestEmployerBrand awardfromtheworldhrd CongressandtheEmployerBrandingInstituteforthesecondconsecutiveyear.Asthelargestbankandoneofthe biggest employers in the Maldives, this award is testament to our commitment to people excellence and our progressivepoliciesintheareasofrecruiting,developingandretainingtalent. In August, we opened new Self Service Banking Centres in Kaafu Atoll Thulusdhoo and Kaashidhoo. These new facilitieswillsupportlocalindividualsandbusinessestomakedeposits,paymentsandtransfersona24/7basis. ThequartersawtheBankimplementanadditional22CSRinitiativesacrossthecountry,takingthetallyto72forthe yeartodate.theseweremostlyfocusedonsupportingeducational,sportsandenvironmentalcauses. Bank of Maldives

8 07 3.KEYFINANCIALINFORMATION IncomeStatement(Unaudited)-Quarterended30September2018 (AllamountsinMVR'000unlessotherwisestated) Q Q months months 2017 Gross Income 609, ,988 1,826,387 1,650,147 Interest Income and Similar Income 395, ,764 1,154,6 1,8,7 Interest Expense and Similar Charges (34,347) (35,541) (99,813) (62,592) Net Interest Income 360, ,223 1,054, ,435 Fee and Commission Income 190, , , ,832 Fee and Commission Expense (61,793) (62,278) (208,333) (185,665) Net Fee and Commission Income 128, , , ,167 Other Operating Income 24,187 21,318 71,345 75,288 Total Operating Income 513, ,168 1,518,242 1,401,890 Operating Expenses (114,151) (124,609) (351,609) (327,366) Operating Profit (Profit before Provisions) 399, ,559 1,166,633 1,074,524 Provision for Bad and Doubtful Debts (34,117) (47,372) (114,1) (154,5) Profit Before Tax 365, ,187 1,052, ,499 Income Tax Expense (95,919) (92,079) (284,205) (230,125) Net Profit for Quarter 269, , , ,374 Basic Earnings Per Share (annualised) Bank of Maldives

08 StatementofFinancialPosition(Unaudited)-Asat30September2018 (AllamountsinMVR'000unlessotherwisestated) Cash, Short Term Funds & Balances with MMA Loans and Advances Financial Investments -

Reserves Total Shareholders' Equity Total Equity and Liabilities 30 Sep 2018 4,340,445 12,995,669 123,483 4,576,819 415,210 261,142 22,712,768 14,389,466 1,054,555 1,070,625 16,514,646 269,096 93,000

9 08 StatementofFinancialPosition(Unaudited)-Asat30September2018 (AllamountsinMVR'000unlessotherwisestated) Cash, Short Term Funds & Balances with MMA Loans and Advances Financial Investments - Available for Sale Financial Investments - Held to Maturity Property, Plant and Equipment Other Assets Total Assets Deposits Borrowings Other Liabilities Total Liabilities Share Capital Share Premium Reserves Total Shareholders' Equity Total Equity and Liabilities 30 Sep ,340,445 12,995, ,483 4,576, , ,142 22,712,768 14,389,466 1,054,555 1,070,625 16,514, ,096 93,000 5,836,6 6,198,122 22,712, Jun ,573,203 12,753, ,483 4,424, ,931 2,320 23,491,6 15,480,072 1,4,950 1,057,220 17,562, ,096 93,000 5,566,688 5,928,784 23,491,6 Nandana Senevirathne Chief Financial Officer Andrew Healy CEO & Managing Ibrahim Mohamed Chairperson, Audit & Risk Management Committee

10 09 StatementofCashFlows(Unaudited)-Quarterended30September2018 (AllamountsinMVR'000unlessotherwisestated) Q Cash Flows from Operating Activities 103,956 Changes in Operating Assets and Liabilities (123,459) Cash Flows from Investing Activities (168,572) Cash Flows from Financing Activities 29,605 Net increase in Cash and Cash Equivalents (158,470) Cash and Cash Equivalents at beginning of Quarter 942,266 Q ,676 (473,321) (76,200) 65,736 (90,108) 1,032,374 Cash and Cash Equivalents at end of Quarter 783, ,266

11 10 4.INVESTORINFORMATION Highest Traded Price Lowest Traded Price Weighted Average Traded Price Market Capitalization Price Earnings Ratio Dividend Yield MVR 300 MVR 200 MVR MVR 1,614,576, % 5.GOVERNANCE 5.1FrequencyofBoardMeetings ThenumberofmeetingsheldbytheBoardofsanditssub-committeesduringthethird quarterof2018wereasfollows: No. of Meetings Board of s Board Credit Committee Audit & Risk Management Committee Appointment, Nomination & Remuneration Committee 03 (Three) 00 (Zero) 12 (Twelve) 07 (Seven) 5.2KeyActivitiescarriedoutbytheBoard&BoardCommittees ReviewedandapprovedtheBank'sfinancialstatementsforQuarter ReviewedtheRiskManagementReportforQuarter ReviewedtheNon-PerformingAssetsandLoanPortfolioReportforQuarter ReviewedthereportontheactivitiesoftheInternalAuditfunctionduringQuarter Reviewedtheminutesofthe35thAnnualGeneralMeetingoftheBank. ReviewedtheProcurementCommitteeReportforthefirsthalfof2018. ReviewedandapprovedtheappointmentoftheBank'sInternalAuditPartnerfor2018. ReviewedtheBank'spolicies,withchangesrecommendedtotheBoardofswhereappropriate. Bank of Maldives

12 11 5.3ChangesintheBoardofs As per the Articles of Association of the Bank, the Board shall consist of 11 members, which includes 08 Nomineesand03Electeds.Thequarterbeganandendedwiththefollowing11son theboard. Name of Category Designation Respective Committee 01 Ms. Saeeda Umar Nominee Independent Chairperson BCC Mr. Andrew Healy Executive & Nominee Non-Independent CEO & MD BCC 03 Mr. Mohamed Shareef Nominee Executive & Non-Independent BCC 04 Mr. Ibrahim Mohamed Elected Independent Chairperson of ARM Committee BCC, ANR & ARM 05 Mr. Mohamed Abdul Sattar Elected Independent Chairperson of ANR Committee BCC, ANR & ARM 06 Mr. Rabih Mohamed Nominee Non-Independent ARM 07 Mr. Abdul Haris Nominee Non-Independent ANR 08 Mr. Mohamed Luveiz Nominee Independent ANR & ARM 09 Ms. Ibthishama Ahmed Saeed Elected Independent BCC & ANR 10 Ms. Aishath Arsha Nominee Independent BCC & ARM 11 Ms. Hawwa Safna Nominee Non-Independent - BCC = Board Credit Committee; ANR = Appointment, Nomination & Remuneration Committee; ARM = Audit & Risk Management Committee Bank of Maldives

13 12 6.CORPORATEGOVERNANCECOMPLIANCE TheBankiscommittedtoachievinghighstandardsofcorporateconductandinthisregard,recognizes theimportanceofhavinginplaceasetofwell-definedcorporategovernancepracticesandprocessesto enhancecorporateperformanceandaccountability.duringthequarter,thebankworkedasalwaysto achieve compliance with the provisions of its Corporate Governance Code which articulates best corporategovernancepractices.thebankhasalsocompliedwiththeprovisionsofitsinternalpolicies andprocedureswhichgovernitsdaytodayoperations. 7.REPORTINGCOMPLIANCE ThisreporthasbeenpreparedtakingintoaccounttheCapitalMarketDevelopmentAuthority'sCircular onminimumquarterlyreportingrequirementsforlistedcompanies. Bank of Maldives

SECOND QUARTER REPORT April to June 2015

SECOND QUARTER REPORT April to June 2015 01 is proud to be the national bank of the Maldives. We touch the lives of almost every citizen of the country through our extensive network of branches, ATMs,