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03 Oct 2015

Financial Performance 2014-2015

Despite a volatile global economic environment, AfrAsia Bank Ltd reported a total operating income of MUR1,6bn, representing a strong growth of 40% on a year-over-year basis. This outstanding result is accounted by a steady increase in its net interest income from MUR659m to MUR861m together with a net fee income increase of 34% as compared to the same period in the previous year. Net trading income almost doubled compared to the previous year to MUR471m.

The Bank also fully provided for its remaining exposure on its Zimbabwean investment, which was closed during the year under review. Such an exposure has affected the statement of profit or loss and other comprehensive income of the Bank by MUR707m during the year. The net result is a net profit after tax of MUR175m at the Bank level and a net loss after tax of MUR176m on a consolidated basis.

On the assets side, the Bank successfully grew its loan book by MUR4,3bn across both segments while maintaining a conservative overall loan to deposit ratio of 32%, reflecting its objective of meeting credit demand while maintaining assets quality in its loan portfolio.

Furthermore, customer confidence in the Bank translated by its customer deposits increased by 63% to reach MUR67bn by the end of June 2015, across both segments A and B.

The Bank’s capital base was strengthened with the coming on board of a shareholder of international renown namely the National Bank of Canada which as at June 2015, became the Bank’s 2nd largest shareholder with a 17.5% stake. Capital adequacy ratio of 13.7%, under Basel III also reflected a well-positioned statement of financial position. Furthermore, the Bank fully recognised its Class A shareholders’ entitlement to their dividends according to the terms and conditions of the Class A shares programme memorandum and paid its Ordinary shareholders an amount of MUR1.65 per share during the year ending June 2015.

Whilst the Bank has remained conservative in its approach, a new vision and a reorganisation of its internal structure is warranted to better serve its banking and non-banking clients. With a new organisational transformation, AfrAsia Bank Limited will be well-positioned to reinforce its foothold in the market and create more value for its shareholders.