CFSL Integrated Report 2025

RISK MANAGEMENT

90

Corporate Governance

Statutory Disclosures

Financial

Key Financial Metrics in FY 2025 During the year, Cim Finance progressed on its strategic objectives, rolling out innovative digital solutions designed to better meet the needs of its diversified customer base and contributing to a stronger financial performance compared to the same period last year.

Capital Adequacy Ratio (CAR) A strong capital adequacy ratio of over 28.4% underscores the Group’s robust financial health and resilience. In addition, we maintain sound liquidity and a well-diversified funding position, ensuring stability and confidence in meeting our obligations.

Y-o-Y Asset book growth The credit asset book grew by 12.7% to reach MUR 26.8bn in FY 2025 (FY 2024: MUR 23.8bn),

CAR 28.4%

Y-o-Y Asset book growth 12.7%

primarily driven by consumer finance.

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 reviewed to reflect the current risk level, with a total ECL% of 6.9% in September 2025 (vs 7.4% in September 2024).

Improved NPL ratio The net NPL ratio

Total ECL 6.9%

NPL 3.2%

declined to 3.2% in FY 2025, down from 3.4% a year earlier, indicating our proactive and disciplined approach to managing non-performing assets.

Credit Asset Growth and Portfolio Diver sification The Group achieved 12.7% year-on-year growth in its credit asset book, increasing from MUR 23.8bn in FY 2024 to MUR 26.8bn in FY 2025. This commendable performance reflects disciplined risk management alongside strong demand in consumer finance.

Our portfolio remains well diversified and aligned with the

The Group’s credit risk profile remained stable, as reflected in the following key metrics: Largest single customer exposure: 2.4% of Tier 1 Capital (vs. 3.0% in FY 2024). Top 20 related groups: 10.7% of Tier 1 Capital (vs. 16.1% in 2024). Household exposure: 78% of credit book (from 77% in FY 2024), with other sectors well-diversified.

Group’s risk appetite: Strict Concentration Limits:

Internal concentration limits are applied to single customers and groups of related customers, and they are more stringent than local regulatory norms. Prudential Controls: Limits are set at borrower, product, industry, and credit quality levels, and are monitored independently.

Broad Customer Base: Over 318,000 customers, ensuring risk dispersion.