CIM GROUP REPORTS A SUBDUED PROFIT AFTER TAX (PAT) OF MUR 138.4M FOR THE NINE MONTHS ENDED 30 JUNE 2020.
Cim Group posted an overall PAT of MUR 138.4m for period ended 30 June 2020, representing a drop of 48% on prior year figure of MUR 266m.The Group’s Net Operating Income (NOI) crossed the MUR 1.5bn at June,
representing an 18% growth year on year.
As at the end of June, the net loans and advances portfolio grew 10% to reach MUR 13.3bn, contributing positively to the overall revenue line and improved NOI.
The Group has so far estimated an allowance for credit impairment on its financial assets of MUR 433.7m for the period (prior year MUR 141.5m) to cater for changes in credit risk and bearish macroeconomic forecasts.Although encouraging collection and sales performances have been noted amidst much uncertainty since lockdown was lifted, the full impact of Covid-19 on our business remains a challenge to quantify as the extent of the deteriorating economic impact will be felt in the coming months.
Leveraging on its funding strategy set in 2019, the Group has raised MUR 3bn on the debt capital market at end of July. This second Medium Term Note Programme allowed the Group to take advantage of the attractive interest rate environment and was oversubscribed despite the prevailing difficult market conditions.
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 uncertain economic environment.
By Order of the Board
Cim Administrators Ltd
12 August 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.