second quarter report - bank of maldives · without any collateral and at a concessional interest...
TRANSCRIPT
TABLE OF CONTENTS
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04
05
06
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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
Bank of Maldiveswww.bankofmaldives.com.mv
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
SECOND QUARTER REPORT APRIL TO JUNE 2013
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.
Bank of Maldiveswww.bankofmaldives.com.mv
SECOND QUARTER REPORT APRIL TO JUNE 2013
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
During the 518th meeting of the Board held on 23rd
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
During the 518th meeting of the Board held on 23rd
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
Bank of Maldiveswww.bankofmaldives.com.mv
SECOND QUARTER REPORT APRIL TO JUNE 2013
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
The Audit and Risk Management Committee of the
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
The Audit and Risk Management Committee of the
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.
Bank of Maldiveswww.bankofmaldives.com.mv
SECOND QUARTER REPORT APRIL TO JUNE 2013
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
Bank of Maldiveswww.bankofmaldives.com.mv
SECOND QUARTER REPORT APRIL TO 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)
Bank of Maldiveswww.bankofmaldives.com.mv
SECOND QUARTER REPORT APRIL TO JUNE 2013
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
-
-
Bank of Maldiveswww.bankofmaldives.com.mv
SECOND QUARTER REPORT APRIL TO JUNE 2013
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.
Bank of Maldiveswww.bankofmaldives.com.mv
SECOND QUARTER REPORT APRIL TO JUNE 2013