Mauritius-based Cim Finance profit holds at $18.9 million despite higher impairments

Cim Financial Services Ltd (Cim Finance), a Mauritius-based nonbanking financial institution, reported profit after tax of MUR888.5 million ($18.9 million) for the nine months ended June 30, 2026, little changed from MUR886.5 million ($18.8 million) a year earlier.

The result came as higher consumer lending and stronger revenue helped offset a sharp increase in impairment provisions. For the nine-month period, net operating income rose to MUR3.36 billion ($71.4 million), from MUR2.91 billion ($62 million) a year earlier.

Interest income lifts financial performance

Net interest income increased to MUR2.76 billion ($59 million), from MUR2.38 billion ($50.6 million), as total interest income rose to MUR3.59 billion ($76.3 million). Noninterest income also increased to MUR606.7 million ($12.9 million), from MUR536.2 million ($11.4 million).

The increase in revenue came with little change in operating expenses. Costs stood at MUR1.54 billion ($32.7 million), compared with MUR1.53 billion ($32.5 million) a year earlier. As a result, profit before impairment rose 31.6 percent to MUR1.82 billion ($39 million).

That improvement was partly offset by a sharp rise in impairment losses on financial assets. Net impairment losses climbed to MUR641.7 million ($13.6 million), from MUR288.9 million ($6.1 million) a year earlier. 

CIM builds scale through lending growth

The increase reflects higher provisions as the group took a more cautious approach to credit risks. In the third quarter, profit after tax was MUR303.1 million ($6.4 million), compared with MUR311.2 million ($6.6 million) in the same period a year earlier.

Consumer finance disbursements benefited from seasonal demand around Mother’s Day and additional spending linked to the football World Cup event, the group said. Leasing activity improved from the previous quarter but remained below expectations.

Cim Finance also ended the period with a larger balance sheet. Total assets stood at MUR31.55 billion ($671 million) as of June 30, 2026, compared with MUR29.2 billion ($620.8 million) at the end of September 2025.

The increase was largely driven by higher lending. Loans and advances rose to MUR15.31 billion ($325.5 million), from MUR12.74 billion ($271 million), while net investments in leases and other credit agreements increased to MUR12.96 billion ($275.5 million). Total equity reached MUR7.47 billion ($158.81 million).

Growth continues despite market challenges

The group also reported stronger lending activity at Loinette Capital, its asset-backed finance subsidiary. Its loan book has doubled since Cim Finance acquired the business, increasing its lending to enterprises across its markets.

The company, however, said it is carrying out plans to exit its greenfield investment in Kenya after the business failed to achieve the scale and financial performance required in the local market. Management said economic conditions remain challenging, citing ongoing geopolitical conflicts, including the Middle East crisis, as a source of continued uncertainty for businesses.

The board said the group will focus on maintaining credit discipline, protecting liquidity and keeping costs under control as it moves into the next financial year. The measures are intended to protect the company’s balance sheet while it continues to lend to consumers and businesses.