Maib profit increased by 10% sustained by the growth of the retail loan portfolio

Maib, the largest bank in Moldova, reports solid performance in 2023, achieving growth amid a challenging economic and geopolitical environment. Net profit in 2023 reached MDL 1.25 billion, equivalent of EUR 63.6 million (average exchange rate 2023: MDL/EUR 19.6431), achieving 10% year-on-year increase. Total assets reached MDL 52.3 billion, equivalent to EUR 2.7 billion, up 21% year over year. Retail lending saw a recovery, particularly in the second half of the year, with retail loan portfolio reaching MDL 8.5 billion, up 16% year over year.

Giorgi Shagidze, CEO maib: “In 2023, maib showed a promising performance. Within an environment filled with economic uncertainty, maib’s strong and resilient operational framework, combined with its talented team, managed to increase assets, grow market share across the board, pay a dividend and generate a net profit of MDL 1.25 billion for 2023, a 10% year on year increase. At the bank, we take pride in continuing to support the Moldovan economy. 2023 was the year we have officially adopted a sustainability strategy and roadmap, opened our new headquarters maib park, issued the first corporate bond offering in nearly twenty years, and signed a senior loan agreement with the IFC, to name just a few milestones. Importantly we became a digital bank, where we reach nearly 60% of our clients using maibank. I am truly proud of what we have managed to achieve this year, and have no doubt that we will continue to do great things here at maib.”

Maib highlights in 2023:

Net profit reached MDL 1,249 million in FY 2023, equivalent to EUR 63.6 million (average exchange rate 2023: MDL/EUR 19.6431), growing from MDL 1,135 million in FY 2022, equivalent to EUR 57 million (MDL/EUR 19.8982), a YoY growth rate of 10.0%;
Return on Average equity (ROE) stood at 17.2% as of 12m 2023, as compared to 18.6% in 12m 2022, reflecting a falling net interest margin due to rapid declines in base rate;
Market share statistics as of 31 December 2023, were as follows:

Market share of total assets – 33.9%, up by 1.2 pp YoY;

Market share of total loans – 37.4%, up by 0.2 pp YoY;

Market share of total deposits – 34.3%, up by 1.2 pp YoY;

Number of maibank users surpassed 591 thousand, an increase of 37% YoY;
Out of total retail deposits 66% originated online, whilst for the number of retail loans that number was 56%.

Maib continues to pursue its strategic objective of a listing on an international stock exchange. At the moment certain points of Moldovan legislation do not make such a listing feasible. Maib paused its work on the listing pending clarity on legislative changes. The timing of the changes is uncertain. The Bank continues to engage with all relevant stakeholders to ensure the stability of the banking system.

Moldova highlights:

The Moldovan economy is estimated to have grown by 1.5% in 2023 in real terms, according to the Ministry of Economy;
Economy is expected to grow 3-4% in 2024 by a range of forecasters with inflation within NBM’s target of 5%;
NBM lowered the base rate seven consecutive times to 4.25% in February 2024, from 21.5% in November 2022;
European Council decided to open accession negotiations with Moldova in December 2023. The European Commission will continue monitoring progress and compliance in all areas related to the opening of negotiations and report to the European Council by March 2024. These developments could lead to a referendum in late 2024;

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