Mauritius’ ABC Banking performs well in 2013-14 with profit after tax of Rs 17.4 mn
On a strategic level, the group has embarked on a restructuring exercise for the company, which is expected to be better aligned with its objectives of diversification and expansion. (Image: GVpedia)
In spite of difficult market conditions and increasing competition, Mauritius-based financial services major ABC Banking Corporation (ABC Bank) has notched up a remarkable financial performance for the period ending June, 2014, with profit after tax of Rs 17.4 million, representing an increase of Rs 15 million over last year.
The diversification strategy of the bank has turned out to be conclusive, as it has enabled the bank to achieve a growth of 60% in its gross operating income.
Besides, the International Banking segment continues to be one of the most profitable lines of business of the bank, achieving a 12% growth in income for the period ending June 30, 2014, exceeding the targets set at the start of this year.
This department has witnessed considerable growth since 2010 and has proved its mettle by winning the EuroMoney Award for two consecutive years in the offshore service category.
ABC Bank pursues its growth strategy relentlessly and confirms its capacity to reach a high level of profitability in spite of a painful and slow recovery from the economic recession in local and international markets, as well as intensifying competition in the banking sector of the island economy.
For the fiscal period from July 01, 2013 to June30, 2014 the economic indicators of the bank are positive, with net interest income growing from Rs 76 million to Rs 115 million.
The total deposits base also saw an increase of 25% to hit Rs 8.3 billion, whereas profits before tax amounted to Rs 18.1 million.
“These results are the fruits of labor of an entire team, whose united efforts have positively affected our profit margins,” said Prof Donald Ah Chuen, Managing Director, in the Director’s Report for ABC Bank.
“Going forward, we are going to concentrate on developing customized solutions for individuals as well as companies,” he said.
“Further, our team will put in efforts to grow the base of new customers in Mauritius. Moreover, in line with national objectives, we wish to help the island to evolve towards a ‘cash-lite’ or a cashless society,” he concluded.
On a strategic level, the group has embarked on a restructuring exercise for the company, which is expected to be better aligned with its objectives of diversification and expansion.
Post restructuring, the banking activities will be divided into the following segments – Retail & SME Banking, Corporate Banking and International Banking.
This new structure will enable the company to provide higher service levels, and, at the same time, to boost its image as a commercial bank which is rapidly expanding.
Three years after having obtained its banking license, ABC Bank remains faithful to its core objective, which is to offer a wide range of financial services to various segments of the population.