The SBM Group recorded post-tax profits of Rs 2.4 billion for the half-year ending on June 30, 2023, marking a significant increase of 66.5% compared to the same period last year.
The financial strength of the SBM Group has been enhanced, with a capital adequacy ratio of 20.3% as of June 30, 2023, representing a 120 basis points increase compared to December 31, 2022. The group’s gross and net loss ratios also improved to 7.4% and 2.4%, respectively, as of June 30, 2023, demonstrating the group’s sustained efforts to strengthen risk controls and develop its market activities in a prudent manner.
Strategic initiatives implemented across various entities within the group contributed to achieving this remarkable financial performance. As a result, the return on average shareholders’ equity saw a substantial increase to reach 17.1%, and earnings per share crossed the threshold of 93 cents.
While the investment securities portfolio experienced growth, the group’s revenues were supported by loans and other credit extended to non-banking customers. Net interest income rose by 25.5% to reach Rs 5.2 billion in the first half of 2023. Ultimately, the SBM Group’s operating profit reached Rs 7.8 billion for this period, reflecting a 24.8% increase compared to the corresponding period of the previous year.
Commenting on the group’s financial performance, Sattar Hajee Abdoula, Chairman of the Board of Directors of SBM Holdings Ltd, stated: “While the global economy faces significant challenges, the Mauritian economy is expected to maintain its growth momentum in 2023. The national economic climate remains robust due to increased investments, higher tourist arrivals, and measures announced in the latest Budget.”
For the Chairman of the Board of Directors of SBM Holdings Ltd, there is no doubt that “the SBM Group will continue to adopt a cautious approach to its growth trajectory. We will continue our initiatives and projects to strengthen our human capital, risk management, and competitiveness, while supporting the progress of the local economy as well as Mauritian society.”