Dear Shareholders

Introduction

Global economic activity demonstrated greater than expected resilience in 2024. The year presented a mixed bag of challenges and opportunities, marked by significant transformation, shaped by global economic uncertainty, geopolitical instability, and shifting financial market dynamics. Despite inflationary pressures, supply chain disruptions, and rising interest rates impacting businesses and consumers, Bank One remained steadfast in its commitment to sustainable growth and long-term value creation.

Global Economy

In 2024, the global economy showed signs of stabilization after a period marked by significant disruptions, though growth remained below historical averages. Economic recovery was evident in several regions, with emerging markets demonstrating resilience. However, global market activity continued to be influenced by persistent macroeconomic challenges, including inflationary pressures and supply chain disruptions. Political events, such as elections in major economies, the ongoing Russia-Ukraine conflict, and rising tensions in the Middle East, further complicated the geopolitical landscape, contributing to ongoing uncertainty in international markets.

In addition to geopolitical factors, climate shocks and extreme weather conditions also weighed heavily on both global and local economies. On a more positive note, advancements in AI and Generative AI began to make their mark, presenting significant opportunities for future growth. At the same time, macroeconomic volatility and higher interest rates led to an increase in our NPL ratio.

Sub-Saharan Africa Economy

Growth in Sub-Saharan Africa “picked up in 2024, rising from 2.9% in 2023 to an estimated 3.2% in 2024” (World Bank, January 2025 Global Economic Projections). The region showed resilience despite challenges such as a slowdown in key economies, persistent inflation prompting monetary policy interventions, high government debt, elevated interest rates narrowing fiscal space, political turbulence linked to fiscal pressures, and climate change-induced shocks. However, the outlook for 2025 is more positive, with growth forecasted at 4.1%, driven by improved energy availability, infrastructure development, inflation stabilization, stronger fiscal positions, increased output in resource-dependent countries, and a rise in investment activity.

Local Economic Landscape

The Mauritian economy continues to grow, supported by strong momentum in tourism and investment. The government’s revised projection indicates 5.1% growth for 2024 (down from 6.5%) and 5.6% growth in 2023 (adjusted from 7%). Tourist arrivals in 2024 surpassed the 2018 record, with rising tourist spending, making tourism revenues about 13.5% of GDP. Private investment in the second quarter of 2024 reached 21% of GDP, primarily in construction, with notable activity in both residential and non-residential buildings. However, labor shortages are increasingly limiting growth in sectors like tourism, construction, and ICT. Manufacturing growth weakened further, especially in the textiles sector. Despite these challenges, the Bank of Mauritius estimates growth between 3.5% and 4.0% for 2025, though the economy remains sensitive to global shocks, particularly inflation.

Bank One Performance

In 2024, Bank One continued to execute its strategy, strengthening its core business segments and embarking on internal transformations that position it to build scale and grow sustainably in a dynamic operating environment. Our resilience and adaptability have yielded positive outcomes, demonstrating our ability to navigate uncertainty while seizing new opportunities.

Financial Performance and Strategic Growth

Bank One delivered good financial results, despite the challenges encountered in 2024, reflecting its commitment to disciplined execution and strategic growth. The bank has experienced growth of 6% in its balance sheet and reported profit after tax of MUR 567 million representing a return on average equity of 13.34%. This progress is underpinned by significant advancements in the Private Banking and Wealth Management business, as well as Non-Interest Income growth driven by Treasury operations.

Looking ahead, we anticipate accelerated asset growth in 2025, supported by a focused strategic direction. In addition, the Bank maintained its Fitch rating and earned several accolades in both local and international markets, reinforcing its reputation for excellence and stability.

Our ESG Focus: Creating a World We Can All Be Proud Of

Bank One remains committed to strengthening its ESG and climate risk management capabilities. We will establish clear internal structures for managing climate and environmental risks, ensuring that our teams have the necessary resources, skills, and expertise. Concurrently, we are nurturing an inclusive and diverse workplace culture, recognizing that this approach not only supports our ESG objectives but also attracts top talent and drives higher productivity. This vision underpins our efforts to create a future where responsible growth and positive impact go hand in hand.

Empowering Your Prosperity

At the heart of our strategy is a commitment to client-centricity, delivering tailored solutions that align with our customers’ ambitions. Whether facilitating cross-border transactions, supporting business expansion, or offering sophisticated wealth management services, we remain dedicated to unlocking opportunities and fostering sustainable growth.

As we continue our journey, we remain committed to our mission of empowering prosperity-ensuring our clients, employees, and stakeholders thrive in an increasingly connected and evolving financial landscape.

Acknowledgements

I extend my heartfelt appreciation to those who have played a pivotal role in Bank One’s success. First and foremost, I wish to thank Leonard Mususa for his exemplary seven years of service on the Board. His strategic insights and dedication have significantly strengthened our governance framework and operational effectiveness.

I also thank Mark Watkinson for his leadership during his four-year tenure as CEO. With the appointment of Sunil Ramgobin as our new CEO, I am confident that his extensive experience, both locally and internationally, will guide Bank One through its next phase of growth and strategic execution.

Finally, I express my deepest gratitude to my fellow Directors, who play a critical role in steering the Bank towards its vision, and the entire Bank One team. Your dedication, expertise, and resilience continue to drive our success, and I look forward to an even more prosperous 2025 with your unwavering support.

Roselyne Renel

Chairperson of the Board