The future is riddled with uncertainty. Other than a global recession, the COVID-19 pandemic has created significant turmoil in global markets whereby we are expecting to see increased volatility in financial markets for the foreseeable future. The severe contraction of the local economy coupled with potential EU sanctions on the Mauritian jurisdiction, will also present another set of challenges for the banking sector. Given the increasingly challenging landscape, our focus shall be on shoring up risk taking by adopting a “Risk and Capital” preservation strategy, as prescribed by our Board. We nevertheless remain ready to support our stakeholders and will keep abreast of market developments, so as to identify the right opportunities.

The Corporate Banking division primarily acts as a debt house and originator of assets in foreign currency focused on providing lending solutions ranging from short-term lending, term lending, debt advisory products to corporate syndications. On the domestic front, the division acts as the custodian of the entire client relationship providing a full suite of products across transactional banking, trade finance, debt advisory, lending and forex solutions. Clients range from the Top 100 corporates to parastatals and government bodies. On the International Banking desk, our client coverage is niche, selective and driven by known relationships of our banking partners abroad.

Although the core markets have been South Africa and India, the division has been successful at diversifying its risks across new markets on the African continent and the emerging markets of Asia.

Mauritius, as a whole, has not been spared by the COVID-19 pandemic. The outbreak has brought considerable uncertainty and economic disruptions around the globe. The adverse consequences for the Island are significant with extensive impact on most sectors of the economy. Mauritius, being an International Financial Center (IFC), our financial services sector, in particular, our Global Business sector and, the intricately linked banks, have not been spared.

In the light of the current uncertainties, many international investors have judged it prudent to defer their cross-border investments. Private Equity Funds have seen their closings extended, hedge funds set up are being postponed, general trading of goods and services have reduced, dividend payments are being deferred and borrowers are negotiating payment restructure proposals with their bankers. Many have adopted the ‘cash is king’ principle in this time of financial crisis. The full extent of the impact of this pandemic is difficult to assess since it is dependent upon the duration and the magnitude of the global economic slowdown.

The easing down of the lockdown measures globally have enabled some sectors to resume business activities in a phased manner although Mauritius as an IFC will take some time to bounce back in view of the external dependencies.

Mauritius went into a sanitary lockdown on 20 March 2020. Whilst facing up to the unprecedented challenges linked to the COVID-19 pandemic, the Global Business Desk managed to maintain its operations backed by the effective deployment of its business continuity plans whilst taking all the necessary actions for the protection of its employees and the clients.

As a matter of fact, same day value outward payments were maintained during the lockdown and account opening services were continued, although the highest risk management and mitigation frameworks were applied at the same time.

Another major challenge that awaits the Mauritius IFC and its Global Business sector is the potential blacklisting of the jurisdiction by the EU effective 1 October 2020. This announcement came as a surprise to everyone and if it comes true, will have serious consequences on the island, more specifically the financial services and the Global Business sector. We may expect direct consequences at the level of the reputation of the jurisdiction, in terms of new businesses and at the operational level. Fortunately, the Government of Mauritius and all relevant stakeholders are making our best in order to address the deficiencies that have been identified by the FATF and hopefully, this is a temporary issue that we have to live with.

The travel restrictions and resumption of business activities in a phased manner will undoubtedly affect the performance of the Bank for the ensuing financial year. However, we remain confident that with the strong network of intermediaries and contacts, the upgrade of our information systems and the strong focus on service delivery, the Desk will be able to turn the tide and overcome all the challenges that present to us in these difficult times.

For the next financial year, the strategy is to continue to target the following segments: High-net-worth Individuals (“HNWI”), small and medium-sized enterprises, trusts, foundations, and investment holdings. All these segments will be offered a tailor-made solution through dedicated relationship management, advisory mandates and tailor-made investment solutions.

With the current pandemic, COVID-19, and with the poor economic outlook in 2020 and 2021, our team will focus mainly on the local market rather than the international market. To optimize our service to our loyal clients, there will be a restructuring of the Consumer Banking sales team. The view is to have a team of relationship managers that focus solely on Private Banking and Wealth clients and a second team on Business Banking clients.

Over the past financial year, ACM further carried out a deep transformation of its organization, processes and tools to better address its business and clientele needs. To this end, ACM invested both in additional human resources and innovative technologies.

The company strengthened its team with the onboarding of new talents and the implementation of an enhanced human resource development policy. This allows for the integration of a broader spectrum of instruments and markets, a wider interaction using six languages with its international clientele and partners and the nurturing of its pool of talents by providing an environment which is accessible and collaborative. Every member of the team is given the opportunity to grow and deliver their best potential.

In further modernizing its portfolio management capabilities, ACM will bring in the following months a cutting-edge experience to its clientele delivering on-the-go portfolio reporting and investment solutions while better monitoring risks and trends. ACM remains committed to placing its clients at the heart of the business, developing and maintaining long-standing relationships which is based on trust, expertise and effective performance delivery.

In the light of the current COVID-19 pandemic and subsequent global economic tensions, ACM is proactive in developing and strengthening its business relations locally and abroad allowing it to remain a step ahead in its asset allocation, product selection and portfolio arbitrage.