The Netherlands Development Finance Company, a public-private bank also known by its Dutch acronym FMO, recently announced it is considering lending USD 10 million to Mutual Trust Bank (MTB) Limited, a privately owned commercial bank in Bangladesh. The funding would be for financing imports and exports , one of MTB’s core activities. FMO would provide the loan in partnership with the Philippines-based Asian Development Bank (ADB). Since 2015, MTB has been participating ADB’s Trade Finance Program, through which ADB provides guarantees, financing and expertise to approximately 200 banks in Asia that engage in trade finance.
MTB, which was established in 1999 in Dhaka, serves 783,000 customers via 11 branches as of 2017. As of the same year, it reports USD 2.4 billion in total assets, a gross loan portfolio of USD 1.7 billion, USD 1.8 billion in deposits, return on equity (ROE) of 18 percent and return on assets (ROA) of 1.1 percent.
ADB was established in 1966 and has 67 member nations, of which 48 are in the Asia-Pacific region. Its mission is to support environmentally sustainable growth and regional integration through loans, technical assistance, grants, equity investments and guarantees. The bank had a 2017 budget of USD 32 billion, including USD 20 billion deployed in loans, grants and investments.
FMO is a Netherlands-based development bank that was established in 1970. The vision of FMO is to help abolish extreme poverty, increase equality and support measures that reduce climate change. The Dutch government owns the majority of FMO’s shares. For 2017, the organization reported total assets of EUR 8.3 billion (USD 10 billion) and pre-tax earnings of EUR 292 million (USD 350 million) from operations in approximately 70 countries. As of year-end 2017, FMO reports EUR 3.3 billion (USD 4 billion) in outstanding investments to financial institutions.
By Nicholas Galimberti, Research Associate
Sources and Additional Resources
FMO Press Release
https://www.fmo.nl/project-detail/53449
MTB Background
http://www.mutualtrustbank.com/about-us/mtb-profile/
MTB Financials
http://www.mutualtrustbank.com/wp-content/uploads/2018/05/7.-MTB-Annual-Report-2017-Finacial-Statements.pdf
FMO Background
https://www.fmo.nl/profile
FMO Financials
https://www.fmo.nl/about-us/reports
ADB Background
https://www.adb.org/about/main
MicroCapital article; May 9, 2018: Asian Development Bank (ADB) to Guarantee $20m in Local-currency Lending by Malaysia’s Maybank to Microfinance Institutions (MFIs) in Myanmar, https://www.microcapital.org/microcapital-brief-asian-development-bank-adb-to-guarantee-20m-in-local-currency-lending-by-malaysias-maybank-to-microfinance-institutions-mfis-in-myanmar/
MicroCapital article; January 4, 2018: Armenia’s Ameriabank Borrowing $30m from FMO for Youth-owned SMEs, https://www.microcapital.org/microcapital-brief-armenias-ameriabank-borrowing-30m-fmo-youth-owned-smes/
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