Despite challenging market conditions, the SBM Group has kicked off the year on a positive note, showcasing its resilience and ability to navigate through uncertain times. In the first quarter of 2023, the Group recorded a net profit after taxes of Rs 752 million, marking a noteworthy 5.3% increase compared to the same period in the previous year.
The results for the first quarter of 2023 reveal several positive indicators, demonstrating the SBM Group’s robust performance. Net interest income experienced a substantial growth of 27.3%, while non-interest income saw a surge of 33.4%. As a result, the Group’s operating income soared by 29.3% to reach Rs 3.8 billion by the end of March 2023.
The revenue boost was driven by the expansion of the investment securities portfolio and the significant amount of net loans and advances provided to non-banking customers, totaling Rs 150.1 billion as of March 31, 2023. Non-banking customer deposits also witnessed a rise, reaching Rs 291.0 billion.
With the exceptional performance in the first quarter, SBM’s earnings per share for the period ending on March 31, 2023, amounted to 29.1 cents, a notable increase compared to 27.7 cents in the corresponding period of 2022.
Sattar Hajee Abdoula, Chairman of the SBM Group, emphasized, “We have remained committed to our strategy established in recent years, enabling us to maintain robust financial ratios that support the Group’s growth projects. Our strong financial position is reflected in a capital adequacy ratio of 19.5%, surpassing regulatory thresholds. Additionally, the Group has demonstrated sound positions in terms of asset quality, funding, liquidity, and efficiency.”
Despite positive trends, the global economic recovery faces uncertainties stemming from high inflation, geopolitical tensions, and financial sector turbulence in certain countries. As per the latest indications, global GDP growth is projected to slow from 3.4% in 2022 to 2.8% in 2023, before rebounding to 3.0% in 2024.
Sattar Hajee Abdoula also acknowledged the ongoing economic recovery in Mauritius, driven by improvements in the business climate and infrastructure modernization projects undertaken by the authorities. However, he noted that the operational environment remains challenging due to headwinds in the country’s main export markets.
In light of this context, the SBM Group plans to pursue its growth strategy cautiously. The Group will focus on strengthening its personnel and technological capabilities while ensuring the effective implementation of ongoing projects and initiatives. These efforts aim to enhance the customer experience across various channels and support the Group’s business development endeavors.Sattar Hajee Abdoula concluded, “SBM is well positioned to consolidate its role as a significant player in the banking and financial services sector, contributing to the well-being and progress of the economies and societies in which we operate.”