SBM Group’s results for the first half of fiscal year 2021, ending June 30, 2021, confirm its improved financial health. The group recorded after-tax profits of Rs 762.9 million, compared to Rs 449.0 million in the same period last year, representing an increase of 70%. This demonstrates that the initiatives put in place over the past 18 months are paying off and enabling the group to adapt to a particularly volatile and constantly changing environment.
“For more than a year, our objective has been to do everything possible to restore the confidence of all our partners and reposition our group in the countries where it operates. The strategy put in place by the Board of Directors allows us to respond to the main economic challenges and there is no doubt that we are now well placed to embark on a new stage of our growth, which is intended to be sustainable and inclusive. The objective remains the creation of value for our customers, shareholders and investors”, explains Sattar Hajee Abdoula, Chairman of the Board of SBM Holdings Ltd.
Key figures to remember
During the first half of the year, the group’s assets grew by 12.7% to Rs 325.1 billion. This growth is attributed, in part, to a 16.3% increase in customer deposits in the non-banking segment.
The SBM Group recorded a 2.1% increase in operating revenues to Rs 5.73 billion as of June 30, 2021. In this low interest rate environment, net interest income increased by 2% to Rs 3.5 billion, while interest earning assets increased by over Rs 36 billion (13.1%).
Non-interest income rose to Rs 2.2 billion due to a sharp increase in trading portfolio gains, while non-interest expenses increased by Rs 378.6 million
Earnings per share stood at 29.5 cents for the period ended June 30, 2021, compared to 15.9 cents for the corresponding period last year.
Shareholders’ equity stood at Rs 25.1 billion as of June 30, 2021. The group’s equity increased from Rs 30.7 billion as of December 31, 2020 to Rs 31.6 billion as of June 30, 2021.
The group’s solvency ratio stood at 20.7% as of June 30, 2021, well above regulatory requirements.
The banking operations contributed positively to the results, with a significant contribution from SBM Bank (Mauritius) Ltd. The group is confident that the initiatives undertaken with its Indian subsidiary to position itself as an agile digital bank will yield promising results in the near future. In Kenya, the rationalization of the branch network and the digitalization of banking services should enable our subsidiary to cover previously untapped markets.
