SBM Holdings Reports a 25.2% Profit Increase Reaching Rs 1.6 Billion Total

Quarter one of 2026 has kicked off with a significant financial boost for SBM Holdings Ltd, which reported a profit after tax of Rs 1.6 billion for the period ending 31 March. This represents a robust 25.2% increase compared to the same period last year, driven by growth across all the group’s banking entities.

The strong quarterly performance pushed the average return on equity to 15.9%, marking an improvement of 180 basis points over the previous year.

Total operating income rose by 18.8% to reach Rs 4.8 billion, a result the group achieved despite facing “difficult market conditions” across its international territories.

Diversified Income Streams

Net interest income saw an 11.5% rise, bolstered by a 3.6% growth in gross loans and advances to non-banking customers, which totalled Rs 202.4 billion by the end of March.

However, non-interest income proved to be the standout performer, surging by 37.2%.

Management attributed this sharp rise to increased net fee and commission income alongside trading activities, reflecting a recovery in client activity and higher transaction volumes.

Cost Management and Investment

Operating expenses climbed by 12.2% to Rs 2.6 billion as the group continues to invest in growth capacity and customer service improvements.

Despite these expenditures, the cost-to-income ratio improved significantly, dropping to 54.9% from 58.2% a year ago.

The group maintains a solid capital position, with Tier 1 capital and total solvency ratios standing at 15.1% and 20.8% respectively—well above regulatory requirements.

Risk and Outlook

While the balance sheet remains strong, non-performing loans continue to require close monitoring.

Gross and net impaired loan ratios stood at 8.1% and 4.4%, levels that remain above banking sector standards.

SBM stated it is actively strengthening internal controls and credit risk management to address this.

Looking ahead, the board remains cautious. Global uncertainties, particularly the ongoing conflict in the Middle East, continue to apply pressure on economic growth and inflation within Mauritius.

To navigate these headwinds, the group is sticking to a four-pillar transformation programme focusing on:

• Human Resources
• Corporate Culture
• Technology
• Operational Processes

The long-term strategy remains focused on diversifying revenue streams across jurisdictions to ensure sustainable profit growth and shareholder value.

Source: Defi Media