SBM Holdings continues its growth trajectory with profits of Rs 4.3 billion for the financial year ending on December 31, 2023, an increase of 18.7% compared to the same period in 2022.
With these financial results, the group has decided to double the dividend payment to its shareholders, increasing it from 20 to 40 cents per share.
In line with the 18.7% increase in profitability, the average return on equity reached 14.7%, reflecting the various strategic initiatives implemented in recent years, as well as the regained strength of the institution, according to the group’s management.
The financial statement of the banking group also shows that the operating profit increased by 14.5% to reach Rs 15.6 billion during the financial year 2023, supported by a 19.3% increase in net interest income.
As for the group’s revenues, they were boosted by a 6.7% increase in net commission income.
Regarding gross loans and advances to retail customers, the amount stood at Rs 157.8 billion as of December 31, 2023, while customer deposits reached Rs 290.6 billion.
Additionally, SBM Holdings maintained healthy financial ratios, allowing it to support its growth ambitions in the short and medium term.
During the financial year 2023, the group recorded improvements in its gross and net loss ratios, which decreased to 6.9% and 2.1%, respectively, compared to 8.9% and 2.8% in 2022.
Furthermore, the group’s equity amounted to Rs 36.7 billion as of December 31, 2023, representing a capital adequacy ratio of 20.5%, significantly higher than local and international prudential ratios.
Commenting on the group’s financial performance, Chairman Sattar Hajee Abdoula explains that “the significant improvement in these results is the result of continuous strategic repositioning efforts initiated by the holding company since 2020 to strengthen its risk management framework, improve operational efficiency, and reposition its various banking and non-banking activities in a highly competitive environment.”
He added that the group remains committed to pursuing its growth plan in Mauritius and in the countries where it operates, benefiting from the support of its employees and all stakeholders.
“We aim to further strengthen our internal capabilities, which will help us to face the challenges facing our industry while aiming to create value to meet the expectations of our shareholders, partners, and other stakeholders sustainably.”
It should be noted that SBM Group’s results were mainly driven by the 31.1% growth in net profit achieved by SBM Bank (Mauritius) Ltd.
The bank continued its growth momentum during the 2023 fiscal year, supported by prudent and targeted strategic initiatives.
The bank has thus strengthened its financial solidity at various levels and consolidated its position as a key player in the Mauritian financial sector.
Source: l’Express
