Maib, the largest bank in Moldova, reports solid performance, achieving growth in the first quarter of 2023 amid a challenging economic and geopolitical environment. Net profit in Q1 2023 reached MDL 341 million, equivalent to EUR 16.9 million (average exchange rate Q1 2023: MDL/EUR 20.12), a 26% increase compared to the same period of 2022. Return on equity (ROE) reached 19.9%, driven by improvements in operational efficiency and asset quality.
Giorgi Shagidze, CEO maib:
“The Bank’s solid financial results, together with progress on its strategic initiatives, reinforce maib‘s position as the flagship of Moldovan banking. I am particularly pleased with the success of our drive for digitalization as mobile banking user number reached 460 thousand, up 42% from a year ago (324 thousand in Q1 2022), while 60% of deposits and 38% of loans originated via the mobile application or online during the quarter (compared to 29% of deposits and 34% of loans in Q1 2022). Maib continued to improve cost management, achieving a reduction in the cost/income ratio to 51.7% from 53.4% in 1Q2023 despite record-high inflation and ongoing transformation. Recent financing from IFC and EBRD will help increase funding for Moldovan businesses with real projects on the ground.”
Maib steady growth in Q1 2023:
- Net profit for Q1 2023 reached MDL 341.4 million, equivalent to EUR 16.9 million, up 25.8% from Q1 2022 and 21.1% from Q4 2022;
- Loan book reached MDL 22.4 billion, equivalent to EUR 1.11 billion, down 1.4% up 9.3% from Q1 2022;
- Customer deposits reached MDL 32.0 billion, equivalent to EUR 1.58 billion, up by 20.1% from Q1 2022;
- Number of cards in circulation up 4% from Q4 2022 to over 1 million;
- Over 11,000 new maibank users joined the platform each month (average Q1 2023 );
- Total number of maibank app users exceeds 460 thousand, up 8% from Q4 2022 and 43% from Q1 2022;
- 60% of deposits and 38% of loans originated via the application or online in Q1 2023.
- Moldova will host the European Union summit on 1-2 June 2023, an event that will bring together all European heads of state, representing a signal of support for Moldova’s European course and future.
- Revised projections for Moldova economy predict a recovery in 2023 and solid growth in 2024-2025. According to projections by the IMF, the World Bank, the Vienna Institute of Economic Studies and the local Ministry of Economy, economic growth for Moldova this year is estimated at between 1% and 2.5%.
- Inflation is seen decreasing and monetary policy loosening cycle has begun: The National Bank of Moldova (NBM) took steps to loosen monetary policy at its last meeting in May 2023. The base interest rate was reduced by 4.0 percentage points to 10%. The reserve ratio was maintained at 34%.