Mauritius second biggest bank anticipates squeezed margins and asset-quality ratios to worsen after profit declined due to increased impairment charges.
In a statement emailed by the Stock Exchange of Mauritius, SBM Holdings says that it’s nine-month attributable profit dropped to $20.6 million from a restated amount of $37.1 million mainly because of impairment charges of $67.7 million
Third-quarter profit declined 42% to $3.8 million from a year ago as provisions for bad loans grew.
Net interest income in the quarter advanced to $44.6 million from $40.9 million. Credit losses for the period rose to $24.9 million from $9.4 million.
“The operating environment continues to be challenging with high levels of uncertainty which make it difficult to assess the full impact of the Covid-19 pandemic in the geographies we operate,” said Sattar Hajee Abdoula, chairman of SBM Holdings.