AfrAsia Bank reports solid third quarter results with NPAT of MUR 4.8bn

 

For the nine months ended 31 March 2025, the Bank recorded a net profit after tax (NPAT) of MUR 4.8bn. The Net interest income increased marginally by 1% to MUR 5.4bn for the nine months ended 31 March 2025, up from MUR 5.3bn for the same period in 2024. This slight uptick was primarily driven by the growth in the Bank’s average interest-bearing assets and liabilities, which helped offset the decline in overall yield levels.

 

 

 

The Net trading income, a key contributor to the Bank’s NPAT, rose by 15% to MUR 1.6bn for the nine months ended 31 March 2025, up from MUR 1.4bn for the same period last year. This increase was largely driven by higher foreign currency flows across both domestic and international markets, as well as effective management of foreign currency exposures.

 

Net fee and commission income increased by 12% from MUR 682.8m for the period ended 31 March 2024 to MUR 766.6m for the nine months ended 31 March 2025. This performance was underpinned mainly by increased transaction volume, enhancing commission income, higher fees on dealings and was further complemented by gains from our card business.

 

The Bank recorded a net impairment loss on financial assets of MUR 333.3m, compared to an impairment credit of MUR 165.6m for the same period last year. This was mainly due to a few exposures showing signs of deterioration during the current period. The Bank continues to closely monitor economic conditions and reassess its impairment provisions accordingly.

 

Operating income and operating expenses grew by 5% and 25% respectively, compared to the prior period. As a result, the cost-to-income ratio increased to reach 20% as at 31 March 2025, up from 16% as of 31 March 2024.

 

The Bank’s balance sheet remains strong, with total assets rising by 9% to MUR 282.9bn as at 31 March 2025, compared to MUR 259.2bn as of 31 March 2024. Loans and advances saw a strong increase of 31%, reaching MUR 76.0bn as of 31 March 2025 (31 March 2024: MUR 58.2bn), mainly resulting from multiple new disbursements during the current period. This growth contributed to an improvement in the loan-to-deposit ratio, which rose to 29% from 24% in the same period last year.

 

On the liability side of the balance sheet, the Bank’s deposit base increased by 9%, rising from MUR 238.5bn as at 31 March 2024 to MUR 258.9bn as at 31 March 2025. This increase was primarily driven by volume growth reflecting the strong loyalty of our customers.

 

The Bank’s total capital adequacy ratio stood at 19.22% as at 31 March 2025, marking an increase from 18.96% as at 31 March 2024.

 

The Bank’s shareholders' equity grew significantly by 20% period-on-period, reaching MUR 22.3bn as at 31 March 2025 (March 2024: MUR 18.6bn).

 

 

Comments of Thierry Vallet, Founder Executive and CEO of AfrAsia Bank:

 

“Our results for the nine months ended 31 March 2025 reflect continued business momentum and a strong balance sheet. Loans and advances maintained their upward trajectory, while our deposit base remained resilient, underscoring the enduring trust of our customers. We also recorded a substantial increase in net trading income and transaction volumes.

 

While we remain optimistic, the global economic outlook is characterised by significant uncertainty marked by ongoing geopolitical tensions, fluctuating commodity prices, and evolving trade dynamics. With global growth expected to slow and inflationary pressures continuing to pose risks both internationally and domestically, we must remain vigilant and agile in our course.

 

Amidst this evolving landscape, we are confident in the strength of our strategy and remain determined in delivering on our growth agenda. With ongoing investments in digital transformation, we are gradually building a future-ready bank — one that is agile, resilient, and well-positioned to seize emerging opportunities with confidence.”