sbm group first half 2017 highlights group_first... · 6 modernisation •estatement •sbm mobile...

August 2017

SBM Group

First Half 2017

Highlights

This document has been prepared by SBM Group (SBM Holdings Ltd and its

subsidiaries) (the Group) for general circulation and is meant solely for information

purpose, without taking into consideration any objective or aim of whoever is

receiving this document. SBM Group does not, in any way whatsoever, warrant

expressly or impliedly the accuracy and completeness of the contents of this

publication and shall not be liable for any loss or damage (including, without

limitation, damages for loss of business or loss of profits) or prejudice of any nature

whatsoever, arising in contract, tort or otherwise suffered by any person / entity

relying on the information contained in this document or arising from any

shortcoming, mistake, omission, defect or inaccuracy, in the document arising

through inadvertence or any other reason. This document is owned by SBM Group

and no part of this publication may be reproduced or transmitted in any form or

by any means, including photocopying and recording, or by any information

storage and retrieval system without the permission of the organisation.

DISCLAIMER

2

o Strategy

• Financial highlights

• Share price info

AGENDA

OUR STRATEGY 2016-2020

4

5

Consolidation

• Increase in market share for Retail Banking

and Corporate Banking

Diversification

• Listing of the Afreximbank

Depository Receipts

• Lead Arranger for MUR 1.5 Bn

Secured Notes Programme for local

company

• Launch of structured investment

products

• Investment Banking license

Internationalisation

• Significant year on year increase of 183%

in Segment B advances

• Entry in the Kenyan market through SBM

Bank (Kenya) Limited, formerly Fidelity

Commercial Bank of Kenya

FIVE STRATEGIC PILLARS – PROGRESS MADE IN 2017

5

6

Modernisation

• eStatement

• SBM Mobile Banking

Capacity Building

• Recruitment in key positions

• Review of HR policies

• Ongoing training to employees

• Alignment of risk policies

6

FIVE STRATEGIC PILLARS – PROGRESS MADE IN 2017

• Strategy

o Financial highlights

• Share price info

AGENDA

SBM HOLDINGS LTD – CONSOLIDATED KEY FINANCIAL HIGHLIGHTS

MUR 177.23 billion 30 June 2017

30 June 2016

MUR 140.31 billion

TOTAL ASSETS TOTAL DEPOSITS

MUR 138.98 billion

30 June 2017

30 June 2016

MUR 107.29 billion

NET LOANS & ADVANCES

MUR 89.85 billion

30 June 2017

30 June 2016

MUR 66.20 billion

MUR 152.37 billion

30 June 2017

30 June 2016

MUR 117.18 billion

MUR 24.86 billion

30 June 2017

30 June 2016

MUR 23.13 billion

SHAREHOLDERS’EQUITY

TOTAL LIABILITIES

8

NET INTEREST

INCOME

MUR 2,284 M 30 June 2017

(30 June 2016:

MUR 2,214 M)

NON INTEREST

INCOME

MUR 1,250 M 30 June 2017

(30 June 2016 :

MUR 1,082 M)

OPERATING

INCOME

MUR 3,534 M 30 June 2017

(30 June 2016 :

MUR 3,297 M)

PROFIT AFTER

TAX

MUR 1,310 M 30 June 2017

(30 June 2016 :

MUR 1,578 M)

9

SBM HOLDINGS LTD – CONSOLIDATED KEY FINANCIAL HIGHLIGHTS

*for half year ended 30 June

GROUP PROFIT FOR FIRST HALF 2017 DECREASED…

10

MUR Million

607

1,578

1,310

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Jun-15 Jun-16 Jun-17


11

PAT 30 June 16

1,578

Net interest income

Non-interest income

Non interest expense

Impairment charge

1,310

PAT 30 June 17

MUR Million

+Rs70m

+39.7% +15.5%

+3.2%

-Rs221m

-Rs442m +106% +26.5%

Tax

% represent change from corresponding period

Share of Profit of associate

+Rs52m

+100%

+Rs168m

+Rs106m

… MAINLY DUE TO INCREASE IN HR AND IT COSTS, AND HIGHER

PORTFOLIO PROVISIONING IN LINE WITH A RISE IN ADVANCES


THEREBY IMPACTING ROE AND ROA

12

0.93

2.30 1.63

5.10

14.00

10.86

-

2

4

6

8

10

12

14

16


Return on Assets Return on Equity

%

TOTAL ASSETS GREW SUBSTANTIALLY BY 26.3% DRIVEN BY AN INCREASE IN

DOMESTIC MARKET SHARE AND SIGNIFICANTLY HIGHER SEGMENT B ASSETS

13

MUR Million

100.3

68.8

37.3

135.2

107.3

69.9

40.4

140.3 139.0

95.2

41.4

177.2

0

20

40

60

80

100

120

140

160

180

200

Deposits Gross Advances Investments Assets


*as at 30 June

14

7.38

6.87

5.78

2.00

4.00

6.00

8.00

Jun 15 Jun 16 Jun 17

Yield on investment Yield on advances

%

4.05

3.58

3.84

3.00

4.00

5.00


%

YIELD ON ADVANCES DECLINED DUE TO (i) HIGHER MIX OF SEGMENT B ASSETS

(ii) EXCESS LIQUIDITY IN DOMESTIC MARKET AND (iii) DROP IN REPO RATE

DEPOSIT MIX REMAINED WELL BALANCED

15

COST OF FUNDS IMPROVED AMIDST HIGH LIQUIDITY AND HIGHER MIX OF FCY DEPOSITS

16

2.26%

1.73%

1.55%

1.00%

2.00%

3.00%


OVERALL, NIM NARROWED BY 45 BPS

17

%

3.13

3.29

2.84

2.5

3

3.5

4

4.5


Net Interest Margin


NET INTEREST INCOME RECORDED SUSTAINED GROWTH


2,045

2,214

2,284

MUR Million

18


Net Fees &

Commission 466

Dividend

Income

Net trading

income

Other

income (e-business, etc.)

558 524

1 1 7

275 260 486

156 264 232

-6%

+600%

+87%

-12%

897 1,082 1,250

30 Jun 15

Total

Non-Interest

Income

+15%

NON-INTEREST INCOME WAS SUPPORTED BY A SIGNIFICANT

INCREASE IN NET TRADING INCOME

19

30 Jun 16 30 Jun 17


2,045 2,214 2,284

897

1,082 1,250


Net Interest Income Non Interest Income

HENCE, GROSS OPERATING INCOME GREW BY 7.2%

20

2,942

3,297

3,534

MUR Million


21

WHILE NON INTEREST EXPENSES INCREASED SIGNIFICANTLY

AMIDST CAPACITY BUILDING INITIATIVES…

-

200

400

600

800

1,000

1,200

1,400

1,600


601 637 762

320 393

480 80

82

312

MUR Million

Personal Expenses Other Expenses Depreciation & Amortisation


… RESULTING IN A RISE IN THE COST TO INCOME RATIO

22

%

36.77

33.72

43.96

20.00

25.00

30.00

35.00

40.00

45.00

50.00



GROSS IMPAIRMENT RATIO INCREASED MAINLY DUE TO CONSOLIDATION

OF OPERATIONS IN KENYA, BUT IT WAS ADEQUATELY PROVIDED FOR

23

JUN15 JUN16 JUN17

Impairment Charge(MUR)

1,041 207 428

Gross impaired/Gross Advances (%)

4.74% 5.81% 7.06%

Net Impaired/Net Advances (%)

2.10% 2.01% 3.09%

4.74%

5.81%

7.06%

2.10% 2.01%

3.09%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

0

500

1,000

1,500MUR Million


CAPITAL ADEQUACY RATIO REMAINED WELL ABOVE REGULATORY

REQUIREMENTS, ALBEIT DECREASING IN LINE WITH STRONG ADVANCES GROWTH

24

18.25 18.60

19.26

5.46 5.43 5.19

28.26

25.70

21.93

5.00

10.00

15.00

20.00

25.00

30.00

-

5.00

10.00

15.00

20.00

25.00

30.00

Dec-15 Dec-16 Jun-17

% MUR Bn

Tier 1 Capital MUR Bn Tier 2 Capital MUR Bn Capital adequacy ratio

• Strategy

• Financial highlights

o Share price info

AGENDA

THE SHARE PRICE HAS BEEN TRENDING UPWARD OVER THE PAST YEAR

26

1500

1650

1800

1950

2100

2250

5.50

6.00

6.50

7.00

7.50

8.00

01

/07

/20

16

15

/07

/20

16

29

/07

/20

16

12

/08

/20

16

26

/08

/20

16

09

/09

/20

16

23

/09

/20

16

07

/10

/20

16

21

/10

/20

16

04

/11

/20

16

18

/11

/20

16

02

/12

/20

16

16

/12

/20

16

30

/12

/20

16

13

/01

/20

17

27

/01

/20

17

10

/02

/20

17

24

/02

/20

17

10

/03

/20

17

24

/03

/20

17

07

/04

/20

17

21

/04

/20

17

05

/05

/20

17

19

/05

/20

17

02

/06

/20

17

16

/06

/20

17

30

/06

/20

17

SBMH (LHS) SEMDEX (RHS)

Pri

ce (

MU

R)

SBMH (July 2016 - Jun 2017)

Note: Share information prior to 19 October 2016 has been restated to reflect reverse share split of 10:1 effective that date.

Note: Share information prior to 19 October 2016 has been restated to reflect reverse share split of 10:1 effective that date.

EARNINGS PER SHARE DECLINED, REFLECTING THE PROFIT TREND

27

Cents

23.50

61.12

50.74

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

Jan-15 Jan-16 Jan-17

DIVIDEND YIELD HAS REMAINED STRONG

28

%

4.50

6.35

5.52

0.00

2.00

4.00

6.00

8.00


SBM Tower 1, Queen Elizabeth II Avenue

Port Louis, Mauritius T: (230) 202 4860

E: [email protected] W: www.sbmgroup.mu

mailto:[email protected]

http://www.sbmgroup.mu/

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