SBM Group published its financial statement on Wednesday March 29, 2023. For the year ended December 31, 2022, after-tax profits more than doubled to reach Rs 3.6 billion.
Commenting on the results for the financial year ended December 31, 2022, Mr. Sattar Hajee Abdoula, Chairman of the Board of Directors of SBM Holdings Ltd, said: “Despite difficult market conditions, the Group has strengthened and accelerated its momentum of growth. It is very encouraging to see that 2022 has been a turnaround year for the Group thanks to the strategic measures put in place as well as the dedication of all our employees and other stakeholders. Our financial results demonstrate that the strategy adopted over the past three years in all the jurisdictions where we are present is proving beneficial. However, we continue to consolidate our operational capacities and proximity to our customers”.
In general, the Group’s profitability was supported by the dynamic growth of our activities and the reduction in provisions for bad debts following the strengthening of the organization’s risk management system. As a result, the return on average shareholders’ equity reached 13.6% for the year ended December 31, 2022, compared to 6.7% for the previous year.
Our operating results increased by 15.8% to reach Rs 13.7 billion thanks to increases of 18.3% and 11.2% in net interest income and non-interest income, respectively, the latter being supported by notable improvements in net fee and commission income and net trading income.
Operating expenses increased by 13.9%, reflecting the investment in human capital and the strengthening of our operational capacities.
The Group benefited from a sustained increase in gross loans and advances to non-banking customers, which reached Rs 163.5 billion as of December 31, 2022, against Rs 145.1 billion as of December 31, 2021, while non-banking customers amounted to Rs 293.4 billion.
The Group’s equity remained comfortable at Rs 33.6 billion as of December 31, 2022. Considering the development of activities, the equity adequacy ratio reached 19.1%, which is above the threshold’s regulations. The Group has maintained solid liquidity ratios, while the relative improvement in asset quality indicators is an encouraging sign.
Outlook
The Group has, over the past three years, implemented various initiatives aimed at improving the way it is structured, operates, and engages with its customers. Building on the current momentum, the Group is committed, among other key actions, to making new investments to equip itself with the adequate means to achieve its various growth ambitions, both in Mauritius and in other countries. where it is established.
In conclusion, Mr. Sattar Hajee Abdoula underlines: “We are aware that there is a long way to go. But the Group is ready to take all necessary measures that will help SBM Holdings Ltd to strengthen its capacity to generate profitability, while improving its financial solidity and forging a more resilient, agile and innovative organization, in particular in the face of a difficult economic environment. Finally, we are committed to positioning the SBM Group as a reference player in the field of banking and financial services and to supporting the creation of long-term value for our stakeholders, in particular our shareholders, our customers, our employees as well as the economies and societies in which we operate”.
