SBM sees profits after tax in first quarter dip 3.9%
SBM Holdings Ltd reported lower profits for the quarter ended March 2015 and currently, the bank aims to diversify its revenue stream by expanding beyond Mauritian borders in Eastern African regions, coupled with the modernisation of its business-aligned technology transformation initiatives.(Image: New African Manager)
Mauritius’ second largest lender, SBM Holdings Ltd, saw a 3.9% dip in post-tax profit to Rs 564.4 million for the quarter ended March 31, 2015, against Rs 587.5 million a year ago, on account of a hike in interest cost and personnel expenses.
The group’s operating income, however, increased to Rs 1.4 billion, compared to the corresponding period last year, when it stood at Rs 1.3 billion.
Moreover, non-interest income inched up to Rs 449.9 million compared to Rs 326.3 million for the corresponding quarter last fiscal, upon higher net trading income.
The bank, SBM Bank Limited, saw its consolidated capital base at Rs 16.2 billion as at 31 March 2015 with a shareholder’s equity of Rs 18.0 billion whereas SBM Holdings Ltd’s equity has increased by Rs 1.1 billion over 31 December 2014 to reach Rs 25.4 billion as at end of March 2015.
The Group is actively pursuing disinvestments categorized under the “held for sale” portion in SBM Holdings Ltd at an early date.
SBM (Bank) Holdings Ltd capital adequacy ratio (CAR) under Basel III stood at 21.4 % as at 31 March 2015, which is comfortably above the minimum regulatory limit of 12.5%.
The gross loans and advances to non-bank customers increased by Rs 537.0 million from 31 December 2014 to reach Rs 68.6 billion as at 31 March 2015 and on the deposits side, deposits from non-bank customers stood at Rs 97.5, representing an increase of 20.0% over the corresponding period of 2014. The net impaired advances stood at 1.80 percent as at end of the reporting date.
An amount of 1.0 cents per share has been declared as interim dividend for the first quarter for the current financial year ending 31 December 2015, to be paid in June 2015. Besides, an additional amount of 1.1 cents per share has also been declared as interim dividend for the second quarter of the ongoing financial year ending 31 December 2015, to be paid in July 2015.
SBM has forecast a positive outlook for the domestic economy since the beginning of 2015 on the back of encouraging growth, including a rise in tourist arrivals and national initiatives to stimulate businesses especially SMEs, although its positive outlook in the global economy is met with uncertainties with scenarios of soft commodity prices and continued low interest rates.
Finally, demand for credit could be supported by an improvement in general business activity levels during the second half of the year. It is to be noted that the group has managed to contain costs and maintain asset quality marginally at higher than the targeted levels.
The SBM Group is actively pursuing the diversification of its revenue stream by expanding beyond Mauritian borders in Eastern African regions at an earlier date coupled with modernisation of its business-aligned technology transformation initiatives.