Maib 1Q 2022 results: Strong start of 2022, despite lingering economic uncertainty
Today maib has published financial results for the First Quarter (1Q) of 2022. Maib has achieved a robust uplift in profit (+76% YoY) but its performance has been tempered by the economic uncertainty in the aftermath of the war in the Ukraine:
- Slowdown in lending due to a combination of reduced consumer and business confidence, record high inflation and substantial increase of the base rate by the National Bank of Moldova;
- The disruption of supply chains led to a downgrade of projections for Moldovan economic growth in 2022. Originally forecasted at +4.0 - 5.0% in 2022 by key economic forecasters, it was downgraded to -0.4% to +1.0% range;
- Maib has prudently increased its loan loss reserves to reflect the downgrade of economic activity forecasts to account for potential impact on its loan portfolio;
- This was offset by a substantial one-off recovery of a loan previously fully written down;
- Maib saw a reduction of deposits in line with the banking system due to uncertainty and high inflation experienced by the country. There was also a short-term trend of converting MDL deposits into hard currency. Both these trends reversed subsequent to quarter-end;
- The Bank remains exceptionally well capitalized and with ample liquidity to maintain its lending activity (CAR 20.1%, Tier 1 Ratio 18.8%).
Key Economic and Country Updates
- Moldova submitted its candidacy to become a member European Union in March 2022;
- Series of amendments covering lending activity were debated by the Parliament (and subsequently adopted in April). These amendments focus on combatting predatory lending and promoting responsible banking practices;
- Increase in base rate and required reserves ratio in May 2022 in response to high inflation.
 Financial results for Q1 2022 are based on unaudited standalone financial statements and do not include the financial position and performance of the two subsidiaries, which represent less than 2% of the consolidated balance sheet.
1Q 2022 Financial Performance Highlights
- Net Profit for the period amounted to MDL 261.4 million (1Q 2021: MDL 148.5 million), up by 76.1% YoY and up by 20.8% QoQ;
- Return on average equity (ROE) stood at 18.8% (1Q 2021: 11.8%);
- ROE before expected credit losses (ECL) stood at 20.7% (1Q 2021: 13.5%);
- Return on average assets (ROA) stood at 2.8% (1Q 2021: 1.9%);
- Cost to income stood at 53.8% (1Q 2021: 60.6%);
- Cost of risk stood at -0.72% (1Q 2021: -0.12%);
- Net interest margin (NIM) stood at 4.84% (1Q 2021: 3.85%);
- Basic quarterly earnings per share (EPS) stood at MDL 252 MDL (1Q 2021: 143 MDL).
Balance Sheet Highlights as of 31 March 2022
- Total assets amounted to MDL 38,694 million, up by 4.0% QoQ and by 24.9% YoY;
- Gross loans and advances to customers stood at MDL 20,505 million, up by 3.8% QoQ and up by 30.5% YoY;
- Net loans to deposits stood at 73%, up by 8pp QoQ and up 12 pp YoY;
- Non-performing loans (NPL) were 2.2%, down by 1.7 pp QoQ and down by 2.4 pp YoY;
- NPL ECL coverage and total ECL coverage ratios stood at 191.2% and 3.9%, respectively on March 31, 2022, compared to 141.7% and 4.5% as of March 31, 2021;
- Total customers deposits amounted to MDL 26,644 million, down by 6.8% QoQ and up by 10% YoY;
- The Bank’s Capital Adequacy Ratio and Tier 1 capital stood at 20.1% and 18.8%, respectively.
Maib market share in Moldova
- Market share by total assets reached 32.7%, up by 3.1 pp YoY;
- Market share by total loans was 35.4%, up by 1.8 pp YoY;
- Market share of total deposits reached 31.7%, up by 1.1 pp YoY.
- MAIBank users reached 324k (up from 297k);
- Monthly Active Users (MAU%) – Retail 73%; MSME – 96%;
- 33% of Daily Active Retail Users to Monthly Retail Active Users (DAU/MAU%);
- 29% of number of retail deposits and 34% of number of retail loans originated online;
- 82% of number of retail transactions are cashless (performed via cards);
- 55% of retail MAIBank users are paying users;
- Upgrades to DriveHub ecosystem, preparations to launch CasaHub (launched in April);
- Progress in Agile rollout, first wave of teams focused on lending became operational in May;
- Preparations to launch Apple Pay and Garmin Pay (both launched in April);
- Upgrades to branch network, over a third of branches now converted to new format;
- Continued upgrades to digital user experience across entire product range.
Permanent download links:
1Q 2022 Results Report
1Q 2022 Results Presentation
Upcoming investor events
15 June 2022 – Annual General Shareholder Meeting
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