BusinessMedia releaseSBM: Bank of the Future

Sat,18Aug2018

Posted on Wednesday, 31 January 2018 15:47

SBM: Bank of the Future

SBM - Bank of the future
Established in Mauritius in 1973, SBMis a leading financial institution and is among the largest listed companies on the Stock Exchange of Mauritius, with a market capitalization of around USD 700 million and total assets of USD 5.7 billion as at September 2017

The Group is present in Mauritius, Madagascar, India and Kenya. It also serves a growing number of non-presence markets in Africa. SBM is building its strategic focus of being a strong regional player and consolidating its strength to stimulate growth in Mauritius, India and East Africa.

The Group acts as a one-stop-shop for financial services including: retail banking, SME and corporate banking solutions; global business solutions; treasury services; cross-border financing; e-business platform; trade finance; wealth management; and investment banking and advisory solutions. SBM caters for a diversified portfolio of customers via its branches and its extensive range of distribution channels, with emphasis on digital channels for both ease of access [anytime and anywhere] and optimization of costs.

Based on the Group’s good financial performance and its strategic initiatives, it has earned multiple awards. In 2017, SBM Bank (Mauritius) Ltd was awarded ‘Best Retail Bank-Mauritius’ by the Banker Africa and SBM Securities Ltd was awarded the Best Stockbroker – Indian Ocean 2017 by Capital Finance International (CFI). In 2016, it was awarded the “Best Innovation in Retail Banking-Mauritius” and “Private Bank of the Year-Mauritius” awards by the International Banker Banking Awards 2016. The Banker also recognized SBM as “Bank of the Year-Mauritius” in 2013 and 2014. On its part, Euromoney designated SBM as the “Best Bank in Mauritius” in 2013. SBM ranks among the Top 1,000 World Banks 2017 according to The Banker, a publication of the FT Group. Moody’s Investors Service has assigned Baa3/Prime-3 deposit ratings to SBM Bank (Mauritius) Ltd, the main income generator for the Group.

In 2016, the Group embarked on a five year growth strategy, with a two-pronged aspiration namely: to more than double the size of its assets and to achieve a top quartile return on equity. The strategy has identified key priority growth initiatives and critical enablers across five pillars, namely: consolidation, diversification, internationalization, modernization and capacity building.

One of the Group’s objectives is to consolidate its existing business, particularly in the areas of retail and wholesale banking. In this regard, the product offering has been revamped and innovative payments solutions have been introduced on the domestic market. During the course of 2016, there has also been an internal restructuring to provide better service to the customers. As a result, the domestic banking advances market share is trending upwards, with notable progress in the corporate banking segment. The Group has also launched its factoring services and foundation has already been laid down for the provision of microfinance services.

In a bid to grow its revenue base, the Group has undertaken to develop its non-banking arm. SBM was the first Mauritian banking group to obtain an investment banking license in Mauritius, and has been involved in both DCM and ECM deals in 2017, including the pioneering issue and listing of Abreximbank’s Depository Receipts. The Group also revamped its Wealth Management and asset management businesses, leading to a strong increase in assets under management, supported by the launch of new investment products among others.

As part of its internationalization approach, the Group plans to grow its cross-border banking business and establish and/or widen physical presence in geographies with untapped growth potential for better customer reach. The cross-border banking business has posted remarkable growth over the past two years on the back of the recruitment of domain experts, relationship-building with regional banks, enhanced partnerships with pan-African financial institutions, and greater synergy with overseas operations of the Group. Along the same lines, SBM Group acquired the Fidelity Commercial Bank in Kenya in May 2017 and is now looking to acquire the carved out assets and liabilities of Chase Bank (Kenya) Limited (in receivership). Moreover, the branch network in Madagascar has been expanded for better proximity with customers and the Group has recently been granted the Wholly Owned Subsidiary (WOS) License by the Reserve Bank of India.

As part of its digitalization journey, SBM is well on track to improve customer experience by digitizing its products and services to make them ubiquitous and seamless as well as to improve turnaround time across all its existing channels and new digital channels.

In order to achieve its strategic objectives, the Group has also started an exercise of reviewing, building and strengthening its staffs and skills, processes, risk management framework, organization structure, and governance structure. These should enable the execution of strategy on a sound footing by adapting to the changing strategic orientations of the Group.


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