Bank of Maldives (BML) has opened 2026 with strong financial momentum, reporting a 27 percent year-on-year rise in net profit for the first quarter as the bank builds on its record-breaking performance in recent years.
The country’s largest bank recorded an operating profit of MVR 879 million and a net profit after tax of MVR 631 million for Q1 2026, underpinned by steady growth in core banking operations and improved asset quality.
Revenue Strength and Efficiency Gains
Total revenue for the quarter reached MVR 1.24 billion, driven primarily by net interest income of MVR 796 million, alongside MVR 332 million generated from fees and commissions. The bank also improved operational efficiency, reducing its cost-to-income ratio to 24 percent from 25 percent a year earlier, reflecting tighter cost controls and streamlined operations.
BML confirmed that expected credit losses remain well managed in line with international accounting standards, reinforcing the bank’s prudent risk management approach.
Balance Sheet Hits Historic Milestone
In a key highlight for the quarter, BML’s total assets climbed to MVR 60.6 billion, marking the first time in its history that the bank’s asset base has crossed the MVR 60 billion threshold. This represents an increase of approximately MVR 4.8 billion compared to the previous quarter.
Customer deposits rose to MVR 40.7 billion, supported by strong foreign currency inflows, while the bank’s loan portfolio expanded to MVR 27.6 billion amid continued lending to businesses and individuals.
Foreign Currency Support Surges
BML significantly increased its foreign exchange support during the quarter, facilitating USD 106.2 million for imports of food, essential goods, and other commercial needs. This equates to a monthly average of USD 35.4 million, a sharp 142 percent increase compared to the previous year.
The bank also supported around 32,000 outward remittances and processed USD 119.9 million in cross-border card transactions, reflecting a 23 percent rise in monthly averages. In total, BML’s USD sales to businesses and individuals exceeded USD 226 million during the quarter.
External Pressures Emerging
Despite strong performance, BML flagged emerging risks linked to geopolitical developments. Since late February, the bank has observed a decline in tourist spending and reservation cancellations, contributing to a one-third drop in net foreign currency inflows from card transactions.
At the same time, foreign currency outflows for imports and services have doubled, creating pressure on overall liquidity. The bank expects outflows to exceed inflows if current trends persist.
Liquidity Management and Continued Support
BML said it continues to actively manage foreign currency liquidity while maintaining support for the economy. In the first half of April alone, the bank allocated over USD 25 million for essential imports, more than double the amount provided during the same period last year.
Card-based foreign spending also rose to USD 22 million in the first 15 days of April, highlighting continued demand.
The bank indicated that temporary adjustments to foreign currency sales may be introduced if external pressures continue, while ensuring critical sectors remain supported.
Strong Lending Growth Fuels Economy
Loan disbursements remained robust, with MVR 4.6 billion issued during Q1 across all sectors. An additional MVR 488 million was disbursed in the first half of April, pushing total new lending beyond MVR 5 billion so far this year.
This figure represents roughly half of the total lending extended throughout 2025, underscoring BML’s aggressive support for economic activity.
Network Expansion and Digital Reach
In April, BML expanded its national footprint with six new branches across key islands including Th. Vilufushi, AA. Thoddoo, and H.Dh. Kulhudhuffushi. The bank also deployed 90 ATMs across 70 islands in a major nationwide rollout launched by .
Following the expansion, BML’s network now includes 253 Maldivian Rufiyaa ATMs and 86 US Dollar ATMs, significantly strengthening access to banking services nationwide.
Market Value Surges After Corporate Actions
BML’s market capitalization saw a dramatic increase during the quarter following a bonus share issuance and share split approved at its Annual General Meeting. The bank’s valuation rose more than sevenfold, from MVR 3.6 billion to MVR 28.2 billion by the end of Q1 2026.
Outlook
BML’s first-quarter results highlight strong fundamentals, sustained profitability, and continued balance sheet expansion. While external pressures on foreign currency flows remain a concern, the bank’s proactive liquidity management and ongoing support to key sectors position it to navigate emerging challenges while maintaining growth momentum.
