Total operating income of AfrAsia Bank rose by 9.1% to MUR 2 billion over corresponding period in 2017
For the nine months ended 31 March 2018, AfrAsia Bank registered an operating income of MUR 2.0bn which represents an increase of 9.1% as compared to MUR 1.9 bn for the similar period last year. This rise is attributable to healthy growth in the Bank's Net interest income and Net fees and commission income, which represents 70.7% of the total operating income.
The Bank made higher provisions during the second and third quarter of the financial year, as a result, the Net Profit after Tax for the period ended 31 March 2018 was MUR 644.2m as compared to MUR 866.4m during the same period last year. Our total loans and advances stood at MUR 27.4bn and stable deposits of MUR108bn grew strongly by 13% over MUR 95.6bn recorded at the end of March 2017, resulting in a loan-to-deposit ratio of 25.4%. The liquidity coverage ratio of 285% as at 31 March 2018 also confirms that the Bank has a robust prudential approach to liquidity.
Commenting on the results, Sanjiv Bhasin, Chief Executive Officer of AfrAsia Bank attributed this performance to the expanding customer base and the Bank's commitment to provide best value to customers. "The Bank's three year strategic action plan has focused on the challenging economic environment, maintaining our focus on costs and the delivery of initiatives that are key to building a more resilient and sustainable bank. These pillars are the cornerstone for AfrAsia Bank’s sustainable growth,” added Sanjiv.
The board of directors of AfrAsia Bank has approved a Rights Issue to raise an additional capital of up to MUR 500m at a Special Meeting held on 5 April 2018 to strengthen its capital base for future growth.