Moldova-Agroindbank (maib), Moldova’s largest commercial bank, of which the leading Baltic investment management and life insurance group Invalda INVL is a shareholder, had an unaudited net profit of 958 million Moldovan leu (MDL) (EUR 50 million) in the first nine months of this year, which is 14.3 % more than in the same period last year.
The bank’s net interest income in January-September 2023 totalled MDL 1.63 billion (EUR 85 million) and grew 7.3% compared to the same period a year earlier. Maib’s net fees and commissions income increased 15.9% versus the same period of 2022 to MDL 311 million (EUR 16 million).
The bank’s loan portfolio amounted to MDL 23.8 billion (EUR 1.24 billion) at the end of September and was 10.0 % larger than at the same time last year. Business loans increased 7.4 % in the period of comparison, while loans to households grew 11.9%.
Customer deposits by the end of third reached MDL 35.8 billion (EUR 1.87 billion), 18.9 % more than a year earlier.
“The bank further strengthened its’ leading position in Moldova, actively growing its loan portfolio, and offering new digital services to its clients,” said Vytautas Plunksnis, the Chairman of the Supervisory Board at maib and Head of Private Equity at INVL Asset Management.
As of the end of September 2023, maib assets accounted for MDL 48.7 billion (EUR 2.54 billion), 19.8% more than the previous year. The bank had a capital adequacy ratio of 23% and a liquidity ratio of 246%.
One of maib’s strategic objectives is listing on an international stock exchange. In December 2022 maib shareholders approved the proposal of allowing the listing of maib shares on Bucharest Stock Exchange.
“In order for the potential listing to be successful maib has pursued a transformational strategy focusing on customer experience and digital offerings, bringing its corporate governance and investor disclosure in line with best international practices. Preliminary assessment of Romanian and international equity investors indicated a solid level of interest in maib listing and support from the Bucharest Stock Exchange”, said V. Plunksnis.
However, currently existing certain points of Moldovan legislation make the listing impracticable. Namely, these relate to shareholding approval threshold of 1% and notification requirement for any number of shares bought, as well as some other smaller provisions. These specific points of law restrict liquidity in the open market, and make potential listing unattractive for international portfolio investors, for whom market liquidity is mandatory. Maib continues to work with all stakeholders to amend these points of law while ensuring that the stability of Moldovan banking system is maintained.
At the end of October of this year, international publications Euromoney recognised maib as the best bank for SMEs in Moldova. Another reputable publication “Global Finance” recognised the bank as the best in Moldova, stressing that the bank has been active lender in all segments.
Last year, maib had a net profit of MDL 1.13 billion (EUR 56.8 million), which is 56.8% more than in 2021. The 2022 profit was boosted by a one-off transaction in the first quarter of the year involving the sale of a written-off loan for EUR 11.5 million.
Maib is the largest bank in Moldova. As of 30 September 2023, it accounted for 34% of the country’s bank assets market and 38% of loans. The bank serves more than a third of the people in Moldova and is one of the country’s largest employers. Maib has a high level of capitalisation – as of 30 September 2023, its capital adequacy ratio was 23%. The bank has been recognised for customer service quality and product innovation.
INVL is the leading investment management and life insurance group in the Baltic region. Its companies manage pension and mutual funds and life insurance directions, individual portfolios, private equity and other alternative investments. Over 300,000 clients in Lithuania, Latvia and Estonia and international investors have entrusted the group’s companies with the management of more than EUR 2 billion of assets. In the business for more than 30 years now, the group has solid experience in managing private equity assets and building market players that are leaders in their respective fields in the Baltic countries and Central and Eastern Europe.