RO Today maib has published financial results for the First Quarter (1Q) of 2022[1]. 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.

[1] 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.

Financial Highlights

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.

Operating highlights

• 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.

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