ABC Banking breaks even in 2013 with Rs 2.2 million profit
Mauritius-based financial services provider ABC Banking Corporation has finally moved out of the red, having declared a first-time profit after tax of Rs 2.2 million. (Image: Live Comm)
For the first time since inception, Mauritius-based financial services provider ABC Banking Corporation has moved out of the red, having declared a profit after tax of Rs 2.2 million for the financial year ended 30June13.
Started by the ABC Group in December 2010, the bank was confronted by a complex world economic climate as well as aggressive competition within the island economy, resulting in slow progress and two consecutive loss-making years.
In this context, it may be noted that the bank declared a loss of Rs 14.2 million and Rs 24.9 million in 2012 and 2011 respectively.
The latest annual report for 2013 highlights that the bank has been able to move a step forward in profitability, even if it could not notch up a very high figure.
It goes on to note that financial year 2013 marks the achievement of a new stage and indicates a new and promising future for the bank, which started life as the ABC Finance and Leasing Company in 1997.
Achieving a net interest income of Rs 75.6 million compared to last year’s figure of Rs 65.7 million, an increase of 15 per cent, the bank is now encouraged to continue its operations, the report underscored.
Lending capacity has improved on the back of an increase of Rs 70 million in the bank’s share capital, the report noted.
The total deposit portfolio has continued to increase progressively and stood at Rs 6.59 billion for the financial year ended 30June13, representing an increase of 67 per cent on a year-on-year basis.
Philippe Chan Kin, chairman, ABC Banking, and Donald Ah Chuen, managing director, ABC Banking, pointed out that the bank’s portfolio of savings accounts has now exceeded the Rs 1 billion mark.
The board of directors credited the turnaround to the bank’s highly qualified and experienced professionals who set up more effective teams, devised new strategy and focused on action plans, objectives and direction.
The annual report also underlined ABC Banking’s focus on risk management and added that the bank is committed to operate under a strong system of internal controls to ensure that business is carried out and risks taken without exposing it to unacceptable levels of potential losses.
Further, the bank balances growth with social responsibility by providing a slew of products across priority sectors such as Small and Medium Enterprises (SMEs), tertiary students as well as home owners, designed to facilitate their development.
Philippe Chan Kin and Donald Ah Chuen concluded that the Bank is looking for more visibility by planning new headquarters and a main branch at the Weal House at Place D’Armes, a prime property that was acquired by the bank in 2012.
ABC Banking Corporation Ltd
ABC Banking Corporation Ltd, the banking arm of the ABC Group of Companies, was first established in 1997 as a leasing company, ABC Finance & Leasing, and subsequently obtained its banking license on 01 June 2010.
On December 09, 2010 ABC Banking Corporation Ltd started operations as a full-fledged commercial bank at Port Louis with a solid base of deposit and leasing portfolios. It currently has the following business lines – Retail Banking, Corporate Banking, Leasing, International Banking and Treasury Services – and provides a broad mix of financial services to businesses as well as individuals.
It offers a wide range of products and services including current accounts, savings accounts, term deposits, leasing, housing loans and personal loans, term loans and revolving credit, as well as Trade Finance services such as bank guarantee, letter of credit, import and export loans as well as collection documents for import and export. In December 2011, it launched its international Debit MasterCard and Internet Banking services.
Source: Company Website