AfrAsia Bank highlights a strong half-year as NPAT shoots up by 120% to MUR 769.8m
For the six months ended 31 December 2021, AfrAsia Bank has registered a steady financial performance despite the direct and indirect impacts of COVID-19 pandemic. The total operating income at MUR 1.5 bn represents an increase of 21% as compared to MUR 1.3 bn for the similar period last year. The Bank achieved a net profit after tax (“NPAT”) of MUR 769.8m, up 120% from the same period last year. This rise is driven by broad-based growth in trading income and fee income and lower impairment loss on financial assets compared to same period last year.
The Bank’s Balance Sheet remains robust, with Total Assets standing at MUR 199.6bn, up 17% compared to December 2020. Loans and advances improved by MUR 10.7bn to reach MUR 35.4bn, presenting an increase of 43% at end of December 2021 while loan-to-deposit ratio increased to 19 % from 15% in the same period last year. The Bank continues to enjoy a high asset quality as a result of strict adherence to maintaining a disciplined and focused approach to lending, recovery and funding.
On the liability side of the Balance sheet, the Bank’s deposits base grew from MUR 160.6bn at end of December 2020 to reach MUR 189.2bn by the end of December 2021 i.e. a growth of 18%, further demonstrating its customers’ confidence level in the brand.
The Bank remains well capitalised with Capital Adequacy Ratio at 15.08% as at December 2021 versus 17.23% at December 2020, maintaining a comfortable position against a regulatory limit of 12.88%.
Commenting on the results, Malachy McAllister, Chief Executive Officer of AfrAsia attributed this performance to the Bank’s sustained growth strategy and its deep commitments to provide best value to customers. Malachy stated " Despite the complexity of today’s environment, AfrAsia has maintained a high pace of commercial and recurrent activity, which has translated into two strong quarters of robust growth, expanding profitability and improving asset quality. The hard work and outstanding execution by all our team members builds a strong foundation for the brand’s continued growth and success in the years to come. We are well poised to help our communities and customers thrive as the economy bounces back.”