BML executes USD 2.86B foreign payments in nine months

Bank of Maldives (BML) has executed international transactions worth a total of USD 2.86 billion during the first nine months of this year.

According to the bank, this figure includes more than 373,600 remittance transactions. During the same period, BML provided USD 722 million in foreign currency to customers, averaging approximately USD 80 million per month. The amount disbursed over the nine-month period nearly matched the USD 733 million supplied throughout the entirety of last year.

A substantial portion of the foreign currency allocated this year was used for card-based transactions. Of the USD 336 million spent through cards, 62 percent, equivalent to USD 208 million, was attributed to e-commerce transactions. Additionally, the bank disbursed USD 224 million through Telegraphic Transfers (TT), marking a 28 percent increase compared to the USD 175 million issued through this channel during the whole of last year.

BML also provided USD 86 million in cash for travel, USD 40 million for educational expenses and USD 33 million for healthcare. The amount allocated for healthcare has doubled compared to the previous year.

Despite the substantial volume of foreign currency disbursements, the Maldives has experienced a significant increase in demand for US dollars this year, prompting the government to introduce stringent measures recently to manage the foreign exchange market.

While foreign currency outflows increased, BML also recorded growth in inflows through remittances and card settlements. During the first nine months of the year, the bank received USD 2.96 billion in foreign currency, representing a 15 percent increase compared to the corresponding period last year. However, inflows in September amounted to $240 million, 6 percent lower than in September last year and 27 percent below this year's monthly average.

BML noted that September is typically a period of reduced foreign currency availability. At the same time, demand tends to rise as the month coincides with the beginning of the new academic year for students studying overseas. In September alone, the bank disbursed USD 8.2 million for educational expenses, nearly twice the monthly average.

The bank identified rising global acquisition costs for US dollars and rapidly increasing domestic demand as major challenges. BML stated that these pressures are being managed through prudent balance sheet management and robust policies.

The first nine months of this year have also marked the most profitable period in BML's history. According to the bank's third-quarter financial report, it recorded an after-tax net profit of MVR 1.93 billion for the nine months ended September 30, representing a 26 percent increase from the MVR 1.53 billion recorded during the same period last year.

In the third quarter alone, BML generated a net profit of MVR 647.2 million, a 36 percent increase compared to the MVR 475.4 million earned during the corresponding quarter last year.