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15 Nov 2023

AfrAsia Bank reports solid first quarter results with profits of MUR 1.7bn, up by 136% from the previous year.

For the first quarter ended 30 September 2023, AfrAsia Bank has continued on its strong growth trajectory, achieving a net profit after tax of MUR 1.7bn. This represents an increase of 136% compared to the same period last year (September 2022: MUR 0.7bn), resulting from a steady rise in yield levels.


The increase in the Bank’s NPAT over the period was driven primarily by a considerable increase in net interest income of 95% reaching MUR 1.8bn for the current period compared to MUR 0.9bn for the same period last year. This reflects the smooth execution of the Bank’s strategy in strengthening its Balance Sheet, mainly through the expansion of its loan book and investment securities portfolios, all while managing the effects of the current interest rate environment.


Net trading income, another major contributor to the NPAT rose by 75%, reaching MUR 457.5m for the three months ended 30 September 2023 compared to MUR 261.8m for the same period last year. This was driven by the sustained rise in yields for our investment securities portfolios and increase in foreign exchange business volumes.


Net fee and commission income saw a 15% increase, rising from MUR 198.4m for the period ended 30 September 2022 to MUR 228.7m for the period ended 30 September 2023. This increase was primarily supported by higher volume on transactional banking operations. Operating income showed growth, increasing by 79%, while operating expense rose by 4% compared to the same period last year.


The Bank’s Balance Sheet remains robust, with total assets standing at MUR 229.5bn as at 30 September 2023, representing an increase of 5% compared to same period last year. Loans and advances increased by 31% to reach MUR 54.6bn as at 30 September 2023 contributing to an increase in the loan-to-deposit ratio to reach 26% from 20% for the same period last year.


On the liability side of the balance sheet, the Bank’s deposit base rose from MUR 204.6bn as at 30 September 2022 to MUR 209.5bn as at 30 September 2023. The Bank’s total capital adequacy ratio stood at 19.50%, which is above the minimum regulatory requirements as of 30 September 2023 (September 2022: 15.38%). The Bank’s shareholders' equity witnessed a significant growth of 57% period-on-period to reach MUR 17.1bn as at 30 September 2023 (September 2022: MUR 10.9bn). This notable growth can be mainly attributed to the sustained increase in profit of the Bank.


In response to the first-quarter performance, Thierry Vallet, Founder Executive & Interim CEO, expressed, “We are pleased with the solid start to our new financial year. These results showcase our refined focus, operational discipline, and proven excellence in assisting our clients in navigating challenges and fulfilling commitments within a complex environment. This customer-centric approach instils confidence in our  ability to deliver value to all our stakeholders—there is a lot of work ahead of us, but we have the right team and strategy in place to steer our bank on a successful trajectory."

Unaudited Interim Condensed Financial Statements for the three months ended 30 September 2023