AfrAsia Bank has delivered another record performance, with profits of MUR 5.9bn for the year ended June 2023.
For the twelve months ended 30 June 2023, AfrAsia Bank has delivered an exceptional financial performance with a net profit after tax (“NPAT”) of MUR 5.9bn, marking a healthy increase from MUR 1.4bn in the prior year. The Bank has continued on a strong growth trajectory marked by sustained core earnings and general increase in yield levels.
Here are some key figures to illustrate our performance:
For the year ended June 2023, the Bank reported a net interest income of MUR 5.7bn (compared to MUR 1.5bn in 2022), marking a notable year-on-year increase. This growth was generated throughout all interest-bearing assets and liabilities following the expansion of the Bank’s investment securities portfolio and loan book with higher yields as a result of multiple interest rate hikes.
Net fee and commission income, a key contributor to the Bank’s NPAT, increased by 20% to reach MUR 842.6m by 30 June 2023 in contrast to MUR 702.5m for the prior financial year. Additionally, Net trading income also registered a rise from MUR 1.2bn in June 2022 to reach MUR 1.5bn at end of June 2023, reflecting a 28% year-on-year increase, despite a highly volatile market environment. The growth in net trading income can be attributed to the effective management of foreign exposure and a general pickup in the Forex business volumes.
Our balance sheet continues to be a source of strength, with total assets standing at MUR 231.6bn as of June 2023, representing an increase of 11% compared to MUR 209 bn as at 30 June 2022. This growth was mainly on account of the Bank’s growing deposit base, directed towards investment securities and loans and advances.
With the Bank’s progressive yet prudent lending strategy, net loans and advances improved by MUR 13.2bn, reaching MUR 52.5bn as of 30 June 2023 (compared to MUR 39.2bn in 2022) and net loan-to-deposit ratio increased to 25%, up from the 20% recorded in the last financial year.
The Bank’s deposit base increased from MUR 197.4bn at the end of June 2022 to reach MUR 213.6bn by the close of June 2023. This represents a strong growth of 8%, highlighting the continued trust clients have in the AfrAsia franchise and its distinctive “bank different” customer service approach. As of June 2023, the Bank’s total Capital Adequacy Ratio stood at 19.57%, which is above the minimum regulatory requirements.
The Founder Executive, Thierry Vallet, commented: “Our results show AfrAsia Bank on a path of sustained growth, underpinned by strong underlying performance across our business lines and supported by the tailwind of rising interest rate environment. Our rich client relationships have served us well over the years and are evident in our continued success. We remain passionate about strengthening these relationships with every client by staying actively engaged throughout their financial journey. Lifting the communities, we serve, through the works of our Foundation, will remain another area of impact as we continue to grow. The team has demonstrated its dedication to our values and culture and together we have achieved some very important milestones. I am thankful for this extraordinary performance.”