Reflecting on strong results and strategic execution
2024 has been a year of resilience and progress, thanks to the strategic choices we made and, most importantly, the trust our valued clients have shown us. This year has brought challenges, but also remarkable opportunities.
The economic landscape of 2024 has been complex and, at times, unpredictable. The world has grappled with inflationary pressures, fluctuating interest rates, and geopolitical uncertainties. Locally, Mauritius saw continued growth, although at a more gradual pace compared to the rapid recovery of previous years. Nevertheless, the continued devaluation of the Rupee against the dollar contributed to rising inflation, diminishing returns for offshore investors. Foreign exchange challenges in the domestic market had a direct impact on business volumes, further complicating the financial environment. Increasing compliance costs, coupled with rising competition from non-bank businesses added another layer of complexity to our operations.
Despite the challenges faced, our bank has delivered solid financial outcomes, with notable growth in key metrics. The success of our diversification initiatives was particularly rewarding, as they gained substantial traction this year, generating valuable revenue streams and bringing more balance to the business.
Our 2024-2026 strategic ambition successfully drove outperformance with a clear focus on enhancing outcomes in three key areas across the Bank :
Grow – grow faster than the market, delivering sustainable business growth and attractive returns to increase relevance, both locally and in the Group.
Experience – leverage customer, colleague and digital experience to create competitive advantage and deliver a distinctively unique brand.
Sustainability – be recognised as a leader in sustainability in Mauritius, building a sustainable future for customers, society and the environment.
Driving growth through diversification
Revenue growth again increased well ahead of the market, rising by 27.9% to Rs 9.3 billion in 2024, having grown by 27.5% in 2023. Profit after tax increased by 27.2% year on year. The cost-to-income ratio improved further to 40.7% (2023: 45.7%), benefitting from our emphasis on cost management and the increased efficiencies realised from our digitalisation drive.
The balance sheet grew by 22.0% on loans and 15.5% on deposits and remains liquid and well-funded. The Bank’s capital position strengthened further, providing a robust foundation from which to explore future growth opportunities while retaining a margin of safety in the event of unexpected developments.
The integration of the HSBC domestic Wealth, Personal Banking and Business Banking business was a significant milestone and highlight for the year, adding approximately 38 000 clients and 67 colleagues, representing an increase of 13.5% to our deposit base. The strong performance of the book since integration has notably increased the contribution of our local business, with further opportunities to realise value from cross selling to be realised in the year ahead.
Our Corporate Onshore and Offshore business has successfully closed several major deals this year, further solidifying our position as a formidable player in the sector. Our custody business continues to expand its institutional client base while gaining greater traction in the market. We have strengthened our global banking presence, particularly in key markets such as the US, China and the Middle East and Asia corridors, where we are not only driving significant growth but also fostering deeper, more strategic partnerships that position us for continued success on the global stage.
Our offshore wealth offering has become a substantial business in its own right, and this year, we launched our local wealth offering, backed by a highly experienced team. We also inaugurated our new Wealth Centre at The Precinct in Grand Baie, providing a bespoke environment tailored to the unique needs of our high-net-worth individuals and families.
More information on our diversification initiatives is available on pages 50 to 51.
Digitalisation to improve customer and colleague experience
While our financial success is certainly important, we equally prioritise the experience of our customers and colleagues. Technology is a key enabler of our strategy, with demonstrable benefits across the other strategic pillars. Our ongoing investment has significantly upgraded our digital platforms to provide clients with seamless, 24/7 access and an enhanced customer experience through improved convenience, customer centricity, speed of execution and security. At the same time, digitalisation allows us to unlock cost efficiencies and reduce our environmental impact.
Enhancements to our market-leading digital offerings this year include Absa Pay, a new payment solution that allows users to pay directly with their Android phone, 100% Digi Loans and virtual debit and credit cards. We are rolling out cheque deposit functionality at our ATMs and are the first bank in Mauritius to receive CKYC certification. Spark for Business was also launched as a first-in-Mauritius offering for merchants, allowing them to collect real-time, low-cost, omni-channel payments to any settlement account from the app.
We aim to delight our customers by surpassing their expectations across every touchpoint, thereby strengthening relationships and Absa’s brand. We provide comprehensive customer experience (CX) training to our colleagues to entrench a Customer Obsession culture and enhance cross-functional collaboration.
See page 54 for more information on our digital journey and page 52 for our CX initiatives.
Creating a great workplace and a purpose-led culture
Our goal is to be the destination of choice for top talent, strengthening our competitive edge and fostering a purpose-led culture. With the rising demand for financial services expertise, particularly in Mauritius, attracting and retaining skilled professionals is more crucial than ever. We aim to attract and retain these skills through our employee value proposition, which includes competitive remuneration and a recognition platform to reward excellence. We are extremely proud to have achieved Top Employer status in both Mauritius and Africa in 2024, demonstrating that our human resources policies and procedures measure up to global best practices.
This year, we launched our Graduate Programme designed to attract and develop future talent. We also introduced an AI-powered recruitment solution to enhance our talent acquisition process, ensuring we identify and onboard the best candidates efficiently.
In line with our unwavering commitment to diversity and inclusion, we have implemented focused leadership development programmes and mentorship initiatives specifically aimed at supporting the advancement of women into senior leadership roles, fostering a more diverse leadership team.
Furthermore, we are actively partnering with various organisations to cultivate a welcoming and inclusive culture. This includes creating internship opportunities tailored for students with disabilities, ensuring they have the support and resources needed to thrive within our Bank.
Leading in sustainability
Our refreshed Sustainability Strategy promotes sustainable financing, responsible corporate behaviour and community contribution. The Bank’s sustainable finance portfolio ended the year at Rs 8.0 billion, almost doubling on the previous year, with notable deals including a solar farm and a transaction in the healthcare sector. We also secured funding from Proparco to boost our ESG initiatives, support our clients in their transition to green practices and make a tangible impact as a leading force in sustainable development. Our programme to reduce the environmental impact of our activities is maturing. We launched our first solar-powered ATM during the year, complementing the electric vehicles in the Card Function fleet, solar charging station and other environmental initiatives already in place across head office and our branches.
We are extremely proud of our community investments, which aim to address a range of social needs and environmental projects to build resilience and counter climate change.
Read more about our sustainability strategy and initiatives on page 60.
Looking ahead
As we look to 2025, we recognise that the global economic environment will continue to evolve in ways that present both challenges and opportunities. It is a period marked by cautious optimism. On the global front, the economy is seeing stable but modest growth, while locally, growth is anticipated to slow in 2025. Several risks persist, including geopolitical and trade tensions, the potential negative impact on business confidence and foreign investment due to Moody’s revision of Mauritius’ outlook from stable to negative, the island’s vulnerability to climate change and ongoing tight labour market conditions. Our priorities for the coming years remain clear: we will continue investing in technology, improving our customer experience and remaining nimble in our approach to the evolving economic environment. The Bank’s strategy remains highly relevant in the context of changing market conditions and Group priorities. Our adaptability, commitment to innovation, customer focus and financial resilience position the Bank for sustained growth.
Our strategic ambitions to 2027 align with the Group’s overarching priorities, ensuring our goals support broader objectives. We plan to grow faster than the market and deliver sustainable business growth and attractive returns by focusing on:
Accelerating growth and innovation by leveraging technology and expanding successful initiatives to swiftly respond to market demands and outperform the market.
Consolidating our market position by strengthening our core revenue streams and improving efficiency.
Exploring new avenues to unlock future growth and diversification opportunities.
With the HSBC business fully integrated, our focus will shift to generating additional value for customers and the Bank. We will accelerate expansion in our new growth pillars of wealth, digital, sustainable finance and custody services.
Acknowledgements
I extend my deepest gratitude to the Board for their strategic guidance and unwavering support throughout the past year. Their leadership has been instrumental in navigating our path to success.
Our colleagues’ hard work, resilience and steadfast commitment have been the cornerstone of our achievements. Their efforts have not only driven our success but have also delivered exceptional value to our clients. A special thanks to all colleagues who worked on the integration of the HSBC business during the year for going above and beyond to ensure the success of the project.
We are profoundly grateful to our customers for their trust and loyalty. They remain at the heart of everything we do and their continued support inspires us to strive for excellence.
A sincere thank you to our regulators, shareholders and other stakeholders for their steadfast support and collaboration. Their contributions have been vital in helping us grow sustainably and responsibly.
As we look to the future, I am confident in the collective efforts of all our stakeholders. Together, we will unlock new opportunities and achieve even greater success, driving innovation and creating lasting value for all.
Managing Director
Ravin Rao Dajee
