SBM Holdings Ltd Reports 2.8% Increase in Profit After Tax to MUR 773.4 Million for Q1 2024
- What is the main reason behind the increased profits of the SBM Group in Q1 2024?
- The increase in SBM Group's profits in Q1 2024 was largely driven by a major improvement in credit loss expense due to rigorous risk management, and a year-on-year rise of 6.6% in net interest income, attributable to growing business volumes and a high-interest rate environment.
Performance
- The SBM Group started the financial year resiliently amidst challenging environment across its operational territories.
- Profit after tax amounted to MUR 773.4 million for the quarter ended 31 March 2024, a 2.8% increase year over year.
- Earnings per share grew from 29.1 cents to 30.0 cents for the same period.
- Improved credit loss expense and a 6.6% year-on-year rise in net interest income were key drivers of the results.
- Gross loans and advances to non-bank customers and placements with banks increased, reaching MUR 165.3 billion at the end of the quarter.
- Total deposits reached MUR 307.2 billion on 31st March 2024.
- A 4.8% increase in non-interest expense was observed, partially due to inflation adjustments.
- The Group maintained comfortable financial ratios, with a capital base of MUR 37.5 billion and a capital adequacy ratio of 20.0%.
- Gross and net NPL ratios stood at 6.5% and 2.4% respectively at the end of the quarter.
Outlook
- The IMF reports that the global economy is showing resilience, but medium-term growth remains below historical averages.
- In Mauritius, real GDP growth was estimated at 7.0% in 2023 and is expected to continue its momentum in 2024.
- The SBM Group aims to carefully continue its growth, managing the risks and opportunities at hand.
- The Group plans to improve its financial soundness and operational resilience while enhancing customer experiences and diversifying revenue streams.
- Overall, the SBM Group is committed to generating sustainable, long-term value for its stakeholders and contributing to the economies and societies where it operates.
Useful links
- SBM Holdings Ltd (SBMH.mu) Q12024 Interim Report
- SBM Holdings Ltd on AfricanFinancials
- Corporate Website
About SBM Holdings Ltd (SBMH.mu)
SBM Holdings Limited is licenced as a commercial bank by the Bank of Mauritius and provides personal banking products and services, including savings accounts and term deposits; home, personal, educational loans, auto lease for cars and prepaid, debit, and credit cards. The bank also provides corporate and institutional banking products and services comprising working capital finance and project finance, as well as finance for the acquisition and installation of energy efficient and renewable energy equipment. SBM Holdings Limited together with its subsidiary businesses in Kenya, Mauritius, Madagascar and India, is known as SBM Group. SBM Holdings Limited is listed on the Stock Exchange of Mauritius.
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