SBM Group has started the financial year on a positive note, with a post-tax profit of MUR 1.3 billion for the first quarter of 2025, reflecting a 66.7% increase compared to the same period last year. The return on average shareholders’ equity has thus increased by 450 basis points to reach 14.1%. In line with this, the Group has maintained healthy financial ratios that continue to support its growth ambitions. These results are a testament to the resilience and sustained commitment of the Group’s teams.
Results
While the Group’s subsidiaries faced various challenges in their respective jurisdictions, overall operating income increased by 7.7% to reach MUR 4.1 billion for the three months ending March 31, 2025. This result was primarily driven by the increase in net interest income, due to the redeployment of excess liquidity into higher-yield investment securities. Gross loans and advances decreased by 3.2%, from MUR 180.7 billion in December 2024 to MUR 175.0 billion, due to repayments in both the local and international segments and a prudent growth strategy adopted for asset redeployment. Non-interest income increased by 8.5% compared to the previous year, partly driven by an increase in net trading income and other operating income, though partially offset by a reduction in net fee and commission income.
Operating expenses amounted to MUR 2.4 billion for the first quarter of the 2025 financial year, compared to MUR 2.6 billion for the same period last year. This improvement was attributed to a foreign exchange gain of MUR 100.7 million for the quarter ending March 31, 2025 – compared to a loss of MUR 166.4 million in Q1 2024 – due to the appreciation of the Mauritian rupee against the US dollar. Nevertheless, personnel expenses related to internal capacity-building rose by 4.6%, and IT expenses increased by 27.4% due to incurred investments.
The Group posted a healthy capital position, with Tier 1 capital adequacy and total capital ratios of 15.0% and 19.7%, respectively, as of March 31, 2025, which are above the regulatory requirements of 12.5% and 14.5%, respectively. These ratios provide the Group with ample room to realize its growth ambitions.
The Group’s gross and net non-performing loan ratios stood at 8.2% and 4.6%, respectively, which are above the sector average. The Group has taken the necessary measures to progressively improve the quality of its assets, while continuing a prudent growth strategy.
Outlook
SBM Group continues to face a dynamic and challenging operational environment in the countries where it operates. In Mauritius, the economic climate is exposed to multiple challenges, notably due to a tightening and increasingly uncertain international framework. While this context deserves particular attention, it is reassuring to note that the Government is working to improve the country’s macroeconomic fundamentals, address structural constraints that weigh on growth, and continue fiscal consolidation, particularly the fiscal deficit.
Aware of the imperatives SBM faces, the new board of SBM Holdings Ltd is committed to taking the necessary measures to position the Group on solid foundations, with the goal of becoming a competitive, resilient, and sustainable organization. The Group will prudently, yet resolutely, continue with its strategic agenda across its entities, focusing on strengthening its operating model, capabilities, and risk management. The Group aims to expand and diversify its revenue sources to achieve healthy growth and a strong balance sheet. The Group reaffirms its commitment to being a leading partner in the Mauritian financial sector, while continuing to play a leading role in the socio-economic development of the country.
Commenting on the results, Rohit Ramnawaz, Group Chairman of SBM Holdings Ltd, said: “Our entities in Mauritius, India, Kenya, and Madagascar continue to face challenges in business development, operational efficiency, risk management, and legacy-based challenges, which must be addressed in various ways depending on the specifics of each entity. The new board of SBM Holdings Ltd is therefore committed to evaluating and responding to these imperatives while making the decisions necessary in the best interest of the Group in the long term. I am confident that we will emerge stronger, with solid leadership, unwavering discipline, and the devoted support of our employees, clients, shareholders, and other stakeholders. In this process, we will be guided by our strategic directions, while working to achieve healthy financial ratios. We have also embarked on improving the quality of our assets, particularly our loans and advances. It is clear that diligent work lies ahead, but I remain optimistic about the future of the Group. In this regard, I would like to reassure our shareholders and other stakeholders that the board will take all necessary steps to invest for the future and enable us to continue sustainable growth in a responsible and innovative manner, generating attractive long-term returns.”
