SECOND QUARTER REPORT - Bank of Maldives · without any collateral and at a concessional interest ... 23rd April 2013 approved to select Temenos T24 Core ... SECOND QUARTER REPORT

SECONDQUARTER REPORT April to June 2013

Bank of Maldives PLC www.bankofmaldives.com.mv

TABLE OF CONTENTS

03

04

05

06

08

10

BUSINESS DEVELOPMENTS

MARKETING ACTIVITIES

HUMAN RESOURCE DEVELOPMENTS

ADMINISTRATIONS

FINANCIAL STATEMENTS

MARKET HIGHLIGHTS

11 CORPORATE GOVERNANCE COMPLIANCE

11 REPORTING COMPLIANCE

02SECOND QUARTER REPORT APRIL TO JUNE 2013

Bank of Maldiveswww.bankofmaldives.com.mv

03

1. BUSINESS DEVELOPMENTS

1.1 Home Loan tenure increased

With the aim of providing attractive loan products and

to improve the Bank’s competitive position in the

housing loan market, some of the features of BML

Home Loan were amended. With this change, BML

offers the best value proposition to those customers

seeking to purchase apartments, condominiums and

row houses in Male’ and Hulhumale’.

1.2 Islamic Banking Developments

The Shari’ah Advisory Committee (SAC) held its second

meeting on 3rd June 2013. Local member Dr. Abdul

Majeed Abdul Bari attended in person while the 3

overseas members participated via teleconference. At

the meeting, the committee approved Shari’ah

Compliance Manual of the Bank and Wadi’ah deposit

product with its relevant applications.

1.3 New Core Banking System

The Bank signed a contract with Temenos, the world’s

leading provider of core banking solutions to supply

and implement a state of the art core banking system.

Under this contract Temenos will implement their T-24

core banking platform, which is now one of the most

preferred systems in the banking industry. Once the

system is implemented, a lot of existing manual

processes will be fully automated and will significantly

improve customer experience.

Temenos core banking system is currently being used

by over 1000 banks globally.

1.4 Agriculture loans under Post-Tsunami Fisheries

and Agriculture Rehabilitation Project

As part of its development banking activity, BML is

executing an agriculture development project for

Ministry of Fisheries and Agriculture under Post-

Tsunami Fisheries and Agriculture Rehabilitation

Project. A fund of MVR 1.5 million has been allocated

for providing micro loans to those farmers affected by

Tsunami of 2004. Total of 30 loans would be provided

under this project with a maximum loan amount of MVR

50,000 per beneficiary. These loans would be issued

without any collateral and at a concessional interest

rate. This scheme would assist these farmers to further

improve their farms and overall assist in the

development of a healthy SME sector in the country.

The scheme was announced on 13th June 2013 and

the deadline for application collection is 15th July

2013.Bank of Maldiveswww.bankofmaldives.com.mv

Temenos project kick-off meeting held at Nasandhura

SECOND QUARTER REPORT APRIL TO JUNE 2013

04

2.1 Customer Satisfaction Survey

With the objective of determining the level of customer

satisfaction, the first survey of the year was

successfully completed in April 2013. With a

representative sample from all branches, over 300

customers were contacted to obtain their viewpoint on

their overall banking experience, general banking

services and staff interaction and support. Based on

the results, best performing branches were recognized

to encourage staff to maintain service standard.

2.2 CSR and Sponsorship Initiatives

Bank of Maldives strongly believes in serving the

community and contributes to the development of the

society. In the second quarter, Bank of Maldives

undertook the following initiatives:

• The National Children’s Day was celebrated by the

Bank on 10th May 2013. Our teams across the

branches visited hospitals and health care

centres with gifts to brighten up the day for the

hospitalized and sick kids. Additionally, Bank

teams also visited Kudakudhinge Hiya and the

National Thalassemia Centre.

• BML awarded prizes for the 28th National Quran

Competition being held at Islamic Centre from

30th May to 15th June 2013. The competition is

organized by the Centre of Holy Quran with the aim

of developing interest for Quran among children

and encouraging them to memorize Quran.

• The Bank was honoured to be part of the 16th

Inter-School Netball Tournament 2013 and was

the main sponsor of the event. A total of 27 teams

from 5 age groups represented 14 schools in the

tournament. The event was inaugurated by Deputy

CEO, Ms. Aishath Noordeen.

2.3 Direct Marketing Campaign

During the quarter a direct marketing campaign and a

promotion was launched targeting customers seeking

to purchase Row Houses and Coral Ville apartments.

Under the campaign potential customers were

contacted by the Bank and they were briefed on BML

Home loan product features and benefits.

Photo Credits

2. MARKETING ACTIVITIES


BML sponsored prizes for the 28th National Quran Competition

Our staff visit children at hospitals and Kudakudhinge hiyaa on the occasion of Children’s Day


05

3. HUMAN RESOURCE DEVELOPMENTS

3.1 Learning and Development

A training programme on Islamic Banking aimed at

grooming employees as Islamic Banking Champions

was conducted by Learning and Development

Department of the Bank. Additionally, Standard First

Aid Training was conducted to train an employee from

each department as a certified standard first aid

trainer. The training was conducted by Think Safe.

Workshops and Technical Training sessions for the new

Co-banking System, Temenos24 were also conducted

during the quarter.

Additionally, Staff from the Bank participated in the

following local and overseas trainings:

• Employment Law Seminar organized by Maldives

Law Institute, Male’

• IFC Global Trade Finance Program, Trade

Operations Training, Colombo

• MasterCard Stimulators, Bangkok

• Basic Dispute Resolution Workshop, Mumbai

• Efficient Chargeback Processing Workshop,

Mumbai

• Visa Security Summit, Bangkok

• Microsoft in the Enterprise Forum, Singapore

• The Role of Directors: Duties Responsibilities &

Legal Obligations, Singapore

• Product Launch Marketing, Malaysia

• Overseas Training Dynamics of Merchant

Acquiring, Malaysia

• OpRisk Asia Conference, Singapore

The Board of Directors participated in the following

overseas training programs:

• Executive Skills for Board Members in Challenging

Times, SIM, Singapore

• Effective Succession Planning and Compensation

Decisions, SIM, Singapore

3.2 Performance Management

For the second phase of Performance Management,

March-End reviews for all staff were conducted during

the quarter.

3.3 Staff Strength

The staff strength as at June 30, 2013 was 825

(female 408 & male 417). During the quarter 28 staff

was recruited. The graduate position as at June 30,

2013 was 10% (84 staff) of the total staff.



06

4.1 Frequency of Board Meetings

The number of meetings held by the Board of Directors

and its sub-committees during the 02nd quarter of

2013 are as follows;

4.2 Activities carried out by the Board & Board

Committees

The following activities were carried out by the Board of

Directors and its sub-committees during the quarter:-

4.2.1 The Board of Directors

4.2.1.1 Renewal of Insurance of the Bank

The Board of Directors in their 516th meeting held on

03rd April 2013, approved the Insurance of the Bank

for the year 2013.

4.2.1.2 Relocation of Majeedhee Magu Branch

During the 516th meeting of the Board held on 03rd

April 2013, the Board of Directors approved to lease H.

Sisilhiya, Male’ to relocate Majeedhee Magu Branch of

the Bank.

4.2.1.3 Approval to publish the 29th AGM Minutes


April 2013, the Board of Directors approved to publish

the minutes of the 29th Annual General Meeting of the

Bank held on 08th November 2012.

4.2.1.4 Approval of Annual Audited Account 2012

The Board of Directors in their 518th Meeting held on

23rd April 2013 approved the audited accounts of the

Bank for the year 2012.

4.2.1.5 Approval to publish 1st Quarter Report of

2013


April 2013, the Board of Directors approved the First

Quarter Report of 2013.

4.2.1.6 Selection of Core Banking Vendor

The Board of Directors in their 518th meeting held on

23rd April 2013 approved to select Temenos T24 Core

Banking Solution as the Core Banking system of the

Bank.

4. ADMINISTRATIONS

06

09

08

Board of Directors

Executive Committee

Audit & Risk Management Committee

No. of Meetings

Appointment, Nomination & Remuneration Committee

02



07

4.2.1.7 Selection of ERP Vendor

The Board of Directors in their 521st meeting held on

16th June 2013 approved to select Microsoft

Dynamics ERP Solution as ERP for the Bank.

4.2.2 The Audit & Risk Management Committee

(ARM COMMITTEE)

4.2.2.1 Review of Annual Audited Report

The Audit and Risk Management Committee of the

Board in their 141st meeting held on 18th April 2013

reviewed Annual Audited Accounts for the year 2012

and approved to recommend for Board of Directors

approval.

4.2.2.2 Review of 01st Quarter Report of 2013


Board in their 141st meeting held on 18th April 2013

comprehensively reviewed the 01st Quarter Report of

year 2013 and approved to recommend for Board of

Directors approval.

4.2.2.3 Review of 29th AGM Minutes


Board in their 142nd meeting held on 21st April 2013,

discussed and reviewed the 29th AGM Minutes of the

Bank and approved to recommend for Board of

Directors approval.

4.3 Changes in the Board of Directors

The quarter began with a total strength of 11 directors

in the Board’s composition and remained the same

throughout the quarter.



08

5. FINANCIAL STATEMENTS

Cash, Short Term Funds & Balances with MMA 6,256,606,311 6,196,204,464

As at 30-Jun-13 As at 31-Mar-13

Loans and Advances 5,535,590,619 5,507,433,090

Investment - Available for Sale 339,046 339,046

Property, Plant and Equipment 272,922,008 223,975,623

Other Assets 357,793,662 304,235,305

TOTAL ASSETS 12,423,251,646 12,232,187,528

Deposits 9,395,381,046 9,254,855,296

Borrowings 584,006,045 611,642,106

Other liabilities 676,998,992 598,824,563

TOTAL LIABILITIES 10,656,386,083 10,465,321,965

Share Capital 269,096,000 269,096,000

Share Premium 93,000,000 93,000,000

Reserves 1,404,769,563 1,404,769,563

TOTAL SHAREHOLDERS' EQUITY 1,766,865,563 1,766,865,563

TOTAL EQUITY AND LIABILITIES 12,423,251,646 12,232,187,528

Aminath ShazraFor Chief Financial OfficerHead of Finance

Peter HortonManaging Director & CEO

In MVR

Ibrahim MohamedChairperson, Audit & Risk Management Committee

5.1 Balance Sheet

Condensed Balance Sheet (Unaudited)

As at 30 June 2013



09

Interest income and similar income

Q2 2013 Q1 2013

Interest expense and similar charges

Net Interest Income

Other Operating Income

Operating Profit (Profit before Provisions)

Provision for bad and doubtful debts

Profit before tax

Net Profit / (Loss) for the quarter

Basic Earning per share (annualised)

In MVR

Operating Expenses

Income tax expense

5.2 Income Statement

Condensed Income Statement (Unaudited)

For the quarter ended 30 June 2013

181,783,883

(36,197,531)

145,586,352

126,442,254

272,028,606

(117,791,163)

154,237,443

(126,457,129)

27,780,314

-

-

167,160,998

(36,924,151)

130,236,847

279,610,880

409,847,727

(106,533,319)

303,314,408

352,831,590

656,145,998

527,140,678

144.40

(27,780,314) (129,005,320)



10

5.3 Cash Flow Statement

Condensed Cash Flow Statement (Unaudited)

For the quarter ended at 30 June 2013

Highest Traded Price

Lowest Traded Price

Weighted Average Traded Price

In Rufiyaa

Market Capitalization

6. MARKET HIGHLIGHTS

175

100

138.54

538,192,000

Cash flows from operating activities (259,038,951)

Q2 2013 Q1 2013

Cash flows from investing activities (55,909,448)

Cash flows from financing activities (27,646,131)

Net increase in cash and cash equivalents (342,594,530)

Cash and cash equivalents at beginning of the quarter 3,763,524,505

3,420,929,975Cash and cash equivalents at end of the quarter

In MVR

1,423,400,246

(5,295,914)

(24,510,534)

1,393,593,799

2,369,930,706

3,763,524,505

Dividend Yield

Price Earnings - Ratio

-

-



11

7. CORPORATE GOVERNANCE COMPLIANCE

The Bank is committed to achieving high standards of corporate conduct, and in this regard,

recognizes the importance of having in place a set of well-defined corporate governance practices

and processes to enhance corporate performance and accountability in the Bank. During the quarter,

the Bank has been working to achieve compliance with the provisions of the Bank’s corporate

governance code that articulates best corporate governance practices in the industry. The Bank has

complied with the provisions of its internal policies and procedures that govern its day to day

operations.

8. REPORTING COMPLIANCE

This report has been prepared taking into account the CMDA Circular on Minimum Quarterly

Reporting Requirement for Listed Companies.



Documents

SECOND QUARTER REPORT - Bank of Maldives · without any collateral and at a concessional interest ... 23rd April 2013 approved to select Temenos T24 Core ... SECOND QUARTER REPORT