Invalda INVL : Moldova-Agroindbank continued growing in the first half of...

Moldova's largest commercial bank Moldova-Agroindbank (maib), of which the leading Baltic investment management and life insurance group Invalda INVL is a shareholder, had a net profit of 514.2 million Moldovan leu (MDL) (EUR 25.6 million) in the first half of this year, which is 88% more than in the same period last year. Profit for the period was significantly impacted by a one-off transaction in the first quarter involving the sale a written-off loan for EUR 11.5 million.

Maib's revenue in the first half of 2022 totalled MDL 1.34 billion (EUR 66.5 million) and rose 46% compared to the same period a year earlier.

Net interest income grew 60% compared to the first half of 2021 to MDL 921.7 million (EUR 45.8 million). Net commission income fell 3% from the year-ago period to MDL 158.2 million (EUR 7.9 million).

The bank's loan portfolio amounted to MDL 21.2 billion (EUR 1.1 billion) after the first half of this year and was 25 percent larger than at the same time last year. Business loans grew 21% in the period of comparison, while loans to households grew at a faster pace of 34%.

Customer deposits at maib at the end of June 2022 totalled MDL 28 billion (EUR 1.5 billion), 10% more than a year earlier.

"The war in Ukraine has accelerated euro-integration processes - in June, Moldova was granted EU candidate status, which is good news both for the country's people and for business. Despite growing provisions for bad loans, the situation in Moldova's banking system is stable. Rising inflation due to higher prices for energy resources and raw materials remains a key issue - that's why the Moldovan central bank is tightening monetary policy," notes Vytautas Plunksnis, the Head of Private Equity at INVL Asset Management, who is Chairman of the Supervisory Board at maib.

He says maib is continuing steady work on strategic initiatives which aim at being closer to the customer and is not giving up plans to list its shares on an international stock exchange.

At the end of June, maib's capital adequacy ratio was 22.1% and its liquidity ratio was 139.2%.

About maib

Maib is the largest bank in Moldova. As of 30 June 2022, it accounted for 32.4% of the country's bank assets and 35.5% of loans. The bank has provided 31% of all housing loans to residents of Moldova and serves more than a third of the people in the country, where it is one of the largest employers. Maib has a high level of capitalisation - as of 30 June 2022, its capital adequacy ratio was 22.1%. The bank has been recognised for customer service quality and product innovation.

Since 2018, maib's largest shareholder is a consortium of investors consisting of the European Bank for Reconstruction and Development, Invalda INVL - a leading investment management and life insurance group in the Baltic region, and Horizon Capital - a private equity fund manager focused on emerging Europe.