CFSL Integrated Report 2025

38

Risk Management

Corporate Governance

Statutory Disclosures

Financial

While the 60% increase in e-loans disbursement confirms a growing appetite for self-service channels, a significant segment still values in-person interactions. Our customer interaction model is evolving into a blended phygital approach, balancing both digital or in-branch engagement, reducing friction, and meeting customers where they choose to interact. These initiatives have also strengthened operational efficiency, allowing us to reinvest resources into service improvements. Automation is reducing manual tasks, freeing our teams to focus on higher-value work and a more personalised customer experience. AI and advanced analytics are being applied to improve credit assessment, anticipate emerging risks, and streamline processes. These capabilities are being scaled thoughtfully and responsibly, ensuring they align our culture, governance, operational standards and regulatory requirements. What concrete steps did the business take this year to make financial services more accessible and inclusive? This year, we focused on expanding access to fair, transparent, and affordable financial solutions for individuals and businesses alike. A key milestone was the launch of our Cashback Credit Card - Mauritius’ first with uncapped cashback on essential spending such as groceries, fuel, pharmacies, and dining. By automatically crediting cashback each month, it brings immediate, tangible relief to households and offers a more transparent way to manage everyday expenses. Equally, MoPay is a zero-interest and no-hidden-fee solution, making short-term financing more accessible. SMEs remain a major priority for us, given their significant contribution to employment, innovation, and economic activity. For smaller businesses, inclusion is not only about access to capital; it is also about speed, simplicity, and personalised support. This year, we digitised several application processes, improved turnaround times, and refined our credit assessment models using more data-driven methods. This has allowed us to serve a broader base of eligible individuals and SMEs, while still maintaining prudent and disciplined lending decisions. Our factoring services continued to help maintain healthy cash-flow cycles, while our leasing offering made it easier for entrepreneurs to invest in the equipment they need to grow. Understanding that financial circumstances evolve, we regularly reassess past high-risk accounts. This year, 8,328 clients were rehabilitated and regained credit eligibility, while we continued to reschedule facilities for those experiencing payment difficulties. Loinette, our subsidiary in Africa, also expanded its footprint to Uganda, Guinea-Conakry and Senegal, enabling more medium-sized enterprises to benefit from fit-for-purpose financing solutions. At the same time, given the fluid macroeconomic and socio-political context in Kenya, we are reconsidering our investment in Cim Kenya with the objective to protect shareholder value. We strengthened our ecosystem of support for entrepreneurs through strategic partnerships. Our Noubiznes meet-ups remained an important platform for practical learning opportunities, helping entrepreneurs understand and adapt to policy changes, and strengthen their business fundamentals.

As we continue to advance our digital transformation and ESG commitments, this purpose strengthens our ability to remain relevant, trusted, and impactful - socially, environmentally and financially. Our inclusion on the SEM Sustainability Index (SEMSI) is a tangible recognition of our purpose in practice. It reflects the strength and consistency of our Environmental, Governance, Social, and Economic practices over the years, and validates our belief that finance can and should be a force for lasting social, environmental and economic change. How would you describe Cim Finance’s performance this year? Where did you see the strongest momentum? This year, the operating environment presented significant challenges for both households and businesses. Rising costs across essentials - groceries, fuel, and education - have affected how people borrow, spend, and plan, while SMEs have faced tighter margins and softer consumer activity. In this context, our responsibility to lend carefully and support our customers has been even more critical. Despite these pressures, Cim Finance delivered a robust performance in FY 2025, closing the year with MUR 1.2 billion in profit after tax. Growth was broad-based, but particularly strong in the consumer finance segment. Our credit asset book expanded by 12.7% to reach MUR 26.8 billion, and loan and credit volumes increased by 16.4%, showing continued demand for accessible, responsible financing. The leasing segment also delivered growth, despite the challenging conditions created by the 2025/2026 national budget. Higher vehicle acquisition and ownership costs, increased registration duties and road tax, and the introduction of excise duty on hybrid and electric vehicles have reshaped the market. Even so, the segment posted 2% growth, supported in large part by the digitalisation of the individual leasing journey. More details across our core activities are available in the Business Review on pages 51 to 56. Digitalisation features strongly in your strategy. Which developments had the greatest impact this past year? Digital innovation has been a defining theme this year, shaping how we serve our customers and operate as an organisation. Our objective remains to make financial services simpler, safer, and more practical, while enhancing operational efficiency. A major milestone was the launch of MoPay, a fully digital credit solution covering the entire process, from online application to in-store payment, without the need to visit a branch. With flexible repayment options and access to over 130 merchants, MoPay is helping customers manage everyday expenses into manageable monthly instalments. (Digital Transformation & Innovation section on page 56). In consumer finance, we are piloting the new core lending system in Rodrigues, refining it in real time before a wider rollout across Mauritius. This phased approach will increase efficiency, improve processing speed, and prepare us to handle higher volumes with consistent quality.