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01 Nov 2022

AfrAsia Bank registers a healthy increase of 64% in Net Profit After Tax, reaching MUR 1.4 billion

AfrAsia Bank has delivered an encouraging financial performance, reporting a 64% increase in net profit after tax to MUR 1.4 billion against a challenging global landscape.

The Bank has continued on a growth trajectory with the further strengthening and consolidating of its revenue streams.

The Bank’s balance sheet remains robust, with total assets standing at MUR 209.0bn, up 10% compared to the same period last year. This expansion primarily, as a result of the continued growth in the asset base, was mainly channelled towards investment securities which grew by 56% and, net loans and advances which increased by 55%.

On the liability side of the balance sheet, the Bank’s deposit grew by 10% to reach MUR 197.4bn by the end of June 2022, further demonstrating the confidence of clients in its franchise.

On the impairment side, AfrAsia registered a net impairment loss of MUR 65.8m which is a positive drop for the Bank compared to MUR 465.1m of the preceding year.

The Capital Adequacy Ratio stood at 15.76% as at end of June 2022 which is within the regulatory requirements. 

Net interest income stood at MUR 1.5bn which represents a comforting growth of 39% year-on-year. This performance was mainly driven by growth in our average interest-bearing assets. Similarly, non-interest income went up by 24% year-on-year.  Net trading income, being another major contributor to the increase in NPAT, climbed from MUR 0.9 bn to MUR 1.2bn, representing an increase of 23%. This performance was on the back of growth on the FX side, the money markets and fixed income side which contributed to 35% of total operating income.

Commenting on the results, Thierry Vallet, Interim Chief Executive Officer of AfrAsia attributed this performance to the Bank’s focus on executing its disciplined strategy for long-term profitable growth while creating value for our different stakeholders. Thierry further stated that, “Our results portray AfrAsia Bank’s resilience, our balance sheet’s solidity as well as our ability to overcome the ongoing challenges whilst ensuring the safety of our customers’ assets.  I am confident that this year’s performance provides us a great springboard to do even better next year.”