Moldova-Agroindbank announces results of the first quarter...

Moldova's largest commercial bank, Moldova-Agroindbank (maib), whose one of the shareholders is the leading asset management group in the Baltics - Invalda INVL, had revenues of 623 million Moldovan leu (MDL), or EUR 30.5 million in the first quarter of 2022, and increased by 44% compared to the same period a year ago.

Maib's net interest income increased by 55% year-over-year to MDL 424 million (EUR 20.8 million). During the comparison period, net fees and commissions income decreased by 9% to MDL 71 million (EUR 3.5 million).

The bank's loan portfolio amounted to MDL 20.57 billion (EUR 1 billion) in the first quarter of this year and was 31% higher compared to the corresponding period in 2021. Business loans grew by 23% over the comparison period, while loans to households grew faster - by 49%.

Maib deposits grew 22% year-over-year to MDL 29.7 billion (EUR 1.454 billion), when an 11% growth was recorded in the Moldovan banking system.

During January-March 2022, maib earned MDL 261 million (EUR 12.8 million) unaudited net profit - 76% more than in the first quarter of last year, then receiving a profit of MDL 148 million (EUR 7 million). A one-off transaction due to the sale of a written-off loan for EUR 11.5 million had a significant impact on this year's net profit. Additional provisions due to the war in Ukraine had a negative effect on the results.

"The war in Ukraine is causing tensions throughout the region, but the situation in Moldova's banking system remains stable. Maib is a well-capitalised bank. It operates in the ordinary course of business and meets all capital, liquidity and other requirements. The bank's performance results are good and this is a consequence of the consistent work of the team and customer orientation," commented Vytautas Plunksnis, Chairman of the Supervisory Board of maib, Head of Private Equity Division of INVL Asset Management asset management company.

Maib's capital adequacy ratio at the end of March of this year amounted to 20.1%, the liquidity ratio was 143%.
In May 2022, to diversify its funding base allocated for support to local businesses, maib signed a financing package for the amount of 50 million euros with the European Bank for Reconstruction and Development (EBRD). The first tranche of the loan amounts to 35 million euros under the EBRD's Resilience and Livelihoods Framework, which is committed to supporting countries and businesses directly or indirectly affected by the war in Ukraine.

The second 15 million euros loan extends maib's participation in the EU4Business-EBRD credit line for small and medium-sized enterprises (SMEs).

Last year, Moldova's largest commercial bank earned MDL 721 million (EUR 35.9 million) audited net profit.

The general meeting of shareholders of maib held on 16 June of this year resolved to postpone the issue of dividend payment for the second half of the year. With the outbreak of war in Ukraine in March 2022, the NBM issued a recommendation to commercial banks to refrain from paying dividends this year.

The shareholders' meeting also approved up to 5 per cent for the acquisition of own shares - they are planned for the incentives to the bank's employees in accordance with the long-term motivational programme approved at the end of 2021.

About maib

Maib is the largest bank in Moldova, which as at 31 December 2021 accounted for 31.4% of the country's bank assets and 34.9% of loans. The bank has provided 26% of all housing loans to Moldovans, provides services to more than 35% of Moldova's residents and is one of the country's largest employers. The bank has a high level of capitalisation - as at 31 December 2021, its Tier 1 capital ratio was 21.1%. Maib is recognised for customer service quality and product innovation. From 2018, Maib's largest shareholder is a consortium of investors consisting of the European Bank for Reconstruction and Development, Invalda INVL, a leading asset management group in the Baltic States, and Horizon Capital, a private equity fund manager focused on Emerging Europe.

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