SBM Group delivered sharp operational growth through the first nine months of 2026, yet a heavier tax burden kept net earnings flat. The Port Louis-listed financial group saw pretax profit climb 23.1 percent to MUR6.62 billion ($139 million) for the period ended Sept. 30, up from MUR5.38 billion ($112.9 million) a year earlier.

Core banking momentum remained strong despite rising credit buffers. Profit before expected credit losses jumped 33.5 percent to MUR7.35 billion ($154.4 million) from MUR5.51 billion ($115.6 million) in the prior-year period. That expansion absorbed a sharp increase in credit loss provisions, which climbed to MUR731.95 million ($15.4 million) from MUR129.15 million.

A new tax regime quickly erased those operating gains at the bottom line. Income tax expenses more than tripled to MUR1.94 billion ($40.6 million) from MUR586.46 million ($12.3 million). Net profit attributable to owners edged down 2.3 percent to MUR4.68 billion ($98.3 million) from MUR4.79 billion ($100.6 million), while earnings per share slipped to MUR1.81.

Lending power drives top line

Expanding loan books fueled a 15 percent rise in total operating income to MUR15.16 billion ($318.3 million), compared with MUR13.18 billion a year earlier. Net interest income led the charge, advancing 16.2 percent to MUR10.2 billion ($214.1 million) from MUR8.77 billion as customer lending accelerated across the Mauritian banking group’s core franchises.

Fee-based businesses and trading desks added steady support to the top line. Non-interest income rose 12.5% to MUR4.96 billion ($104.2 million) from MUR4.41 billion ($92.7 million). Net fee and commission income jumped 16.8 percent to MUR2.23 billion ($46.8 million), while net trading income posted a 10.4 percent gain to reach MUR2.08 billion ($43.7 million).

Strict cost discipline amplified revenue gains and sharpened profitability metrics. Non-interest expenses crept up just 1.7 percent to MUR7.81 billion ($164 million) from MUR7.68 billion, pushing the cost-to-income ratio down to 51.5 percent from 58.2 percent. Annualized return on average equity climbed to 14.9 percent from 10.9 percent, while return on average assets reached 1.4 percent.

Balance sheet tops $10 billion

Aggressive lending pushed SBM’s total assets up 13.2 percent over the nine-month stretch to MUR481.39 billion ($10.11 billion), compared with MUR425.33 billion ($8.93 billion) at the end of December 2025. Net loans and advances to non-bank customers anchored that growth, rising 15.3 percent to MUR213.72 billion ($4.49 billion), while investment securities increased 8.1 percent to MUR169.54 billion ($3.56 billion).

Strong deposit inflows funded the asset expansion alongside solid capital buffers. Non-bank customer deposits grew 11 percent to MUR385.69 billion ($8.1 billion) from MUR347.44 billion ($7.3 billion), while other borrowed funds more than doubled to MUR21.09 billion ($443 million). Total shareholders’ equity rose 7.4 percent to MUR43.45 billion ($912.5 million), supporting a 19.7 percent capital adequacy ratio.