Key Financial Metrics 2024 During the year, Cim Finance continued to actively pursue its strategic goals by offering appealing digital solutions that meet the needs of its diversified customer base. By 30 September 2024, the Company delivered a stronger financial performance compared to the same period last year. Diversified Portfolio The Group’s portfolio concentration remains consistent with the Group’s risk appetite and risk/return expectations. Several controls and measures are in place to minimise undue concentration of exposure in our portfolio: • We apply strict customer concentration limits, both for single customers and groups of closely related customers which are more prudent/ conservative than local regulatory requirements recommended for banks and non-banks in Mauritius. • Prudential limits are set at borrower, product, industry and credit quality levels, and are monitored by an independent risk management function. • Our portfolio is highly diversified, with over 276,000+ customers. The largest single customer and group of closely related customers stood at 2.97% of the Group’s Tier 1 Capital as of 30 September 2024 (September 2023: 3.15%). The Top 20 group of closely related customers accounted for 16.1% of the Group’s Tier 1 Capital at year-end (September 23: 14.5%). • With consumer finance as our core business, our exposure to households represented the largest portion of the total credit book at 77% at the end of September 2024 (compared to 81% in September 2023). Other industry exposures, other than households, are well-diversified as follows: 11.4% 9.5% 11.9% 8.9% 8.1% 7.4% 6.6% 7.3% 24.3% 24.1% 37.9% 42.6% Credit Concentration Risk 1 000 800 600 400 200 – MUR M Wholesale and Retail Trade Construction Rental and Leasing Transport Others Professional, Scientific and Technical Activities September 2023 September 2024 Y-o-Y Asset book growth Growth of 16.4% in the credit asset book, primarily driven by consumer finance. The book grew from MUR 20.5bn as at 30 September 2023 to MUR 23.8bn as at 30 September 2024. Improved NPLs ratio The net NPLs ratios stood at 3.4% (30 September 2024) down from 4.7% (30 September 2023), reflecting our commitment to proactive and disciplined risk management of nonperforming assets. Capital Adequacy Ratio (CAR) A robust capital adequacy ratio of over 28.5%, underscoring its strong financial health and resilience. In addition, we uphold sound liquidity and funding positions. IFRS 9 We continued to align with the requirements of IFRS 9 ‘Financial Instruments’ within the Credit Risk. The IFRS 9 ECL models have been updated to reflect the current risk level, with a total ECL% of 7.4% in September 2024 (September 2023: 8.1%). Y-o-Y Asset book growth 16.4% NPLs 3.4% CAR 28.5% Total ECL 7.4% 77 Introduction Group Overview Leadership Strategy & Performance Risk Management Corporate Governance Statutory Disclosures Financial
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