ABCB Holdings’ Profits Jump 16.8% Despite ‘Mixed Bag’ Quarter

ABC Banking Holdings Ltd has reported a 16.8% increase in profits for the three months ending September 30, 2025, reaching Rs 74.9 million from Rs 64.2 million in June. The rise of Rs 10.8 million comes despite what the financial statement, filed with the Stock Exchange of Mauritius (SEM) on November 13, suggests was a “mixed bag” quarter defined by several financial challenges.

Income Boost Counteracts Asset Decline

The parent company of the ABC group, which oversees a diversified portfolio of financial services firms, managed to achieve the profit growth primarily through improved revenues.

• Net interest income, a key revenue stream for banking institutions, saw a rise of 11.8%, increasing by Rs 21 million from Rs 178.1 million in June to Rs 192.2 million in September.
• Net trading income surged by 85.6%, from Rs 30.7 million to Rs 57.1 million.
• Accessory revenues (Total other income) also grew by 66.1%, from Rs 33 million to Rs 54.8 million.

This strong performance pushed operating income up by 16.9%, from Rs 232.6 million to Rs 271.9 million over the quarter.

Key Financial Health Indicators Fall

Despite the ultimate profit rise, the quarter presented significant operational headwinds which resulted in a decline across three key areas of the balance sheet:

• Assets decreased by 2.5% (Rs 828.5 million), falling from Rs 33,211,550,232 in June to Rs 32,383,100,116 in September.
• Liabilities (resources to finance assets) dropped by 3% (Rs 916,629,743), with their value decreasing from Rs 30.6 billion to Rs 29.7 billion.
• A major factor behind the drop in liabilities was a 3.3% decline in client deposits, falling from Rs 28.8 billion to Rs 27.9 billion.
• Liquidity—the capacity to meet short-term obligations—also saw a substantial fall of 9.2% (Rs 799.2 million), from Rs 8.7 billion to Rs 7.9 billion.

Soaring Credit Impairment Costs

ABCB Holdings also faced a massive 426% increase in the Allowance for/Reversal of credit impairment on financial assets.

This provision, set aside to cover potential losses from customers failing to repay loans, ballooned from Rs 2 million in June to Rs 10.8 million in September.

This specific item led to an initial Rs 10.8 million drop in operational profits before depreciation.

Source: l’Express