confidence - Investing In Africa

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Corporate Governance ReportCorporate Governance Report (cont’d)120Based on outstandings at the samedate, the respective percentages to theGroup’s Tier 1 Capital were 62.4%,4.7%, 3.3%, 1.2%, 1.2% and 1.2%.Total credit exposure of Related Parties tothe overall credit exposure at June 30,2005 amounted to 19.23% andexcluding government and governmentcontrolledentities, same was 6.12%. Thecorresponding figures as at June 30, 2004were 22.26% and 10.61%.None of the advances granted toRelated Parties were non-performingas at June 30, 2005.RISK MANAGEMENTRisk Management is discussedextensively under Operations Reviewon pages 79 to 87.SHAREHOLDERS’ INFORMATIONListingSBM’s shares have been listed on theStock Exchange of Mauritius (SEM)since June 1995. On June 30, 2005,SBM’s market capitalisation stood atRs10.440Bn, accounting for 15.30%of the total market capitalisation, upfrom 14.41% at June 30, 2004. SBMholds 15% (57,362,170 shares) of itstotal number of shares in issue asTreasury Shares. Treasury Shares areown shares purchased on the StockExchange and are not eligible fordividend and voting rights.DividendThe Board approved a dividend ofRs1.30 per ordinary share for thefinancial year 2004/2005, an increasein 8.3% from last year. The dividend was paid on August 31 2005 and represents apayout ratio of 35.5% of net income available to shareholders.Dividend PolicySBM’s dividend policy is to distribute a minimum 25% of its Net Income afterIncome Taxes for the year subject to approval from Central Bank and if thesolvency test under S61(2) of the Companies Act 2001 is satisfied. The totalreturn for the year ended June 30, 2005 comprising dividend of Rs1.30 andcapital gain of Rs4.00 amounted to 21%. There are no taxes on dividendincome and capital gains in Mauritius.Table 18 - The Bank’s Share PerformanceTable 19 - Dividend Yield and CoverChart 9 - Movement of share price of SBM for 2004/2005Price in MUR3231302928272625242322Jul04Aug04Sep04Oct04Nov04Dec042005 2004 2003 2002 2001Financial Year end (Rs) 27.30 23.30 16.70 11.70 14.00Highest (Rs) 29.70 24.00 16.70 14.00 17.00Lowest (Rs) 23.00 14.80 10.80 10.30 13.70Average (Rs) 26.02 19.98 12.95 11.72 15.76Value of shares traded (RsM) 401.43 663.72 736.4 374.8 238.2Value of Shares traded as apercentage of Market (%) 12.85 21.13 36.14 13.73 7.56Price to Book (times) 1.09 1.23 1.09 0.87 1.192005 2004 2003 2002 2001Earnings per Share (Rs) 3.66 3.46 2.84 2.62 2.4Market Price - 30 June (Rs) 27.30 23.30 16.70 11.70 14.00Dividend (Rs) 1.3 1.2 1.1 1 0.9Dividend Yield (%) 4.76 5.15 6.59 8.55 6.43Yield (Rs) 5.3 7.8 6.1 (1.3) (2.1)Yield (%) 20.95 39.00 42.96 (10.12) (13.55)Dividend cover 2.8 2.9 2.9 2.6 2.7Cumulative Yield (Rs) 28.1 22.8 15 8.9 10.2Cumulative Yield (%) (Since Listing in 1995) 351.3 285 187.5 111.3 127.5Price Earnings Ratio (times) 7.5 6.7 5.9 4.5 5.8Jan05Feb05Mar05Apr05May05Jun05
Corporate Governance ReportCorporate Governance Report (cont’d)Table 20 - Number of shareholdersValue RangeNumber of shareholders1 - 1,000 12,4511,001 - 5,000 3,0005,001 - 1,000,000 1,2251,000,001 - 5,000,000 125,000,001 - 10,000,000 5More than 10 Million 7Total 16,700Table 21 - Local & Foreign shareholdersShareholders Shares Held % votingNumber % Number % rightsDomestic 16,519 98.9162 199,177,107 52.08 61.30Overseas 180 1.0778 125,875,193 32.92 38.70Treasury shares 1 0.0060 57,362,170 15.00 -16,700 100.00 382,414,470 100.00 100.00Dividend Date for 2006:Record date : Mid July 2006Payment date : End September 2006Quarterly Earnings ReportingUnaudited quarterly earnings report areexpected to be released on our websitewithin 60 days from the quarter endingSeptember, December and March andaudited accounts for June within 3months from end of June.Future Annual MeetingThe Annual Meeting for the year 2006is scheduled for December 2006.The chart 10 below shows the SBM Group holding structure.SBM LTDContact Details for Shareholder RelationshipCompany SecretaryState Bank Tower,1 Queen Elizabeth II Avenue,Port Louis,MauritiusPhone: (230) 202-1560Fax: (230) 202-1234Email: chandradev.ca@sbm.intnet.muSICOM LTD20%SBMNedbankInternational Ltd50%SBMGlobalInvestments Ltd100%SBM IT Ltd100%SBMLease Ltd100%Credit RatingMoody’s rating of the Bank:121Financial strength D+Long-term andShort-term foreignBanque SBMMadagascar79.99%SBMNedcorHolding Ltd20.1%SBMInvestments Ltd100%currency depositsBaa2/P2SubsidiaryAssociateSBMMauritius AssetManagers Ltd100%SBMFinacials Ltd100%SBMSecurities Ltd90%
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embracing change with confidencecon
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Corporate ProfileSBM Group offers a
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key financial indicatorsRestated*20
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Caution regardingforward-looking st
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confidence to move with the times
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Directors’ Report to the Sharehol
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Statement of Management’s Respons
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Report of the Auditors to the Share
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Financial StatementsBalance Sheets
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Page 127 and 128: Board of DirectorsHarel, Antoine L.
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Page 131 and 132: Directors of SubsidiariesSBM LEASE
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