Banks operating in the Maldives paid 14.6 per cent more in income tax during the first five months of this year than during the same period last year, reflecting stronger earnings across the banking sector.

The Maldives Monetary Authority's (MMA) latest monthly financial statistics show banks recorded MVR 2.3 billion in income between January and May after deducting expenses other than tax, up from MVR 1.9 billion during the same period last year.

The figures show banks earned MVR 2.9 billion in interest income during the five months, while MVR 1.5 billion came from non-interest income. Total expenses stood at MVR 2.1 billion.

MMA figures show banks recorded MVR 610.9 million in income tax during the period. Separate figures published by the Maldives Inland Revenue Authority (MIRA) show banks had paid MVR 775.8 million in income tax by the end of June.

Economists have attributed the increase in net income of banks to the slowdown in economic activity.