CIM GROUP REPORTS A PROFIT AFTER TAX (PAT) OF MUR 130.7M FOR THE SIX MONTHS ENDED 31 MARCH 2020.
Cim Group posted overall a PAT of MUR 130.7m, down 26% on prior year figure of MUR 175.5m. The Group’s Net Operating Income closed above a billion rupees for the period under review (prior year MUR859m).
The result achieved over the first six months was on the back of an increasing loans and advances book reaching MUR 14.2bn at the end of March 2020, representing a 21% growth on March 2019 figure.
The Group has deemed appropriate to post an allowance for credit impairment on its financial assets of MUR 265m for the first six months (prior year MUR 92.5m) to reflect partly the estimated changes in credit risk following the Covid-19 pandemic. At this stage, it is not possible to quantify the full impact of Covid-19 on our business. It is anticipated that the loans and advances portfolio which the group holds would probably be affected as a result of market volatility and the deteriorating economic and employment environment. The impact of this outbreak on the assets and exposures as well as on the macroeconomic forecasts, as and when they unfold, will be further incorporated in the estimates on impairment assessment provisions for the quarter ending June 2020 as well as its financial year ending September 2020.
Given the precarious environment and uncertainties we are all facing, the Board has prudently decided not to declare any interim dividends at this stage and will consider to do so when there is more visibility on how the outbreak pans out and its economic impact as well as on the financial results of the Group.
On the back of the digital transformation strategy announced in the Annual Report 2019 and initiated since the start of this financial year, Cim Finance was able to introduce an online payment portal to facilitate online payments by its clients during the confinement period. The company also introduced its consumer ‘app’ called ‘Mo Finans’ which has been enthusiastically welcomed by clients with more than 25,000 downloads so far. Mo Finans will allow Cim Finance to fast track the implementation of the digital lending platform strategy. Since the opening of our offices as from 15 May 2020, we have seen a steady flow of clients settling their instalments for the period March to May 2020. From a liquidity perspective, the Board is of the view that the Group, under its funding strategy, will have adequate funds to ensure any future commitments and obligations that may arise are settled.
The Board will continue to monitor the developing situation very closely and expects that the results of the Group over the coming quarters will be subject to a degree of volatility in light of the current uncertain economic environment prevailing.
By Order of the Board
Cim Administrators Ltd
10 June 2020
The condensed financial statements of the Group (‘Interim Report’) are unaudited and have been prepared using the same accounting policies as the audited statements for the year ended 30 September 2019, except for the adoption of published Standards that are now effective.
This Interim Report is issued pursuant to Listing Rule 12.20 and the Securities Act 2005. Copies of the statement of direct and indirect interests of Officers pursuant to rule 8(2)(m) of the Securities (Disclosure Obligations of
Reporting Issuers) Rules 2007 and the Interim Report are available free of charge upon request made to the Company Secretary at the registered office of CIM Financial Services Ltd.
The Board of Directors of CIM Financial Services Ltd accepts full responsibility for the accuracy of the information contained therein.