AfrAsia Bank delivers robust half-year financial results with a 77% growth in profit to reach MUR 3.5bn

For the six months ended 31 December 2023, the Bank achieved a robust financial performance, reporting a net profit after tax (“NPAT”) of MUR 3.5bn.

This marks a notable rise of 77% compared to the same period last year (December 2022: MUR 2.0bn). Net interest income being the strongest driver to the increase in NPAT, rose by 58% to reach MUR 3.5bn for the current period compared to MUR 2.2bn for the same period last year. These performances have been driven by the upward trajectory of the Bank’s interest-bearing assets amidst a prevailing high yield market.

 

Net interest income being the strongest driver to the increase in NPAT, rose by 58% to reach MUR 3.5bn for the current period compared to MUR 2.2bn for the same period last year. These performances have been driven by the upward trajectory of the Bank’s interest-bearing assets amidst a prevailing high yield market.

 

Net trading income, another significant participant to the NPAT, rose by 34%, reaching MUR 876.4m for the six months ended 31 December 2023 compared to MUR 655.6m for the same period last year. This increase was driven by rising yields, combined with an increase in volume for investment securities portfolios and growth in foreign exchange (“FX”) business volumes, along with effective management of FX exposure. Net fee and commission income grew by 16%, rising from MUR 405.5m for the period ended 31 December 2022 to MUR 472.3m for the period ended 31 December 2023. This growth was mainly attributed to higher commission received from increased volume of transactions and custody income recorded during the current period.

 

Net fee and commission income grew by 16%, rising from MUR 405.5m for the period ended 31 December 2022 to MUR 472.3m for the period ended 31 December 2023. This growth was mainly attributed to higher commission received from increased volume of transactions and custody income recorded during the current period.

 

The Bank recorded a net impairment credit on financial assets of MUR 106.0m, compared to a net impairment loss of MUR 186.2m for the same period last year. The release in impairment for the current period was as a result of bad debts recovered and payment of impaired facility. The Bank continuously monitors the prevailing economic conditions and reassesses its impairment level accordingly.

 

Operating income surged by 48%, while operating expenses declined by 14% compared to the same period last year. As of 31 December 2023, the cost-to-income ratio was 17%, indicating a decrease from the 29% reported for the same period last year.

 

The Bank’s balance sheet is robust, with total assets reaching MUR 232.6bn as at 31 December 2023, reflecting a 5% growth compared to MUR 220.7bn as at 31 December 2022. Loans and advances grew by 9% to reach MUR 53.3bn as at 31 December 2023 (December 2022: MUR 49.0bn), leading to a slight increase in the loan-to-deposit ratio to 25% from 24% for the same period last year.

 

On the liability side of the balance sheet, the Bank’s deposit base increased from MUR 207.6bn as at 31 December 2022 to MUR 214.2bn as at 31 December 2023.

 

The total capital adequacy ratio of the Bank stood at 21.27% as at 31 December 2023 compared to 17.37% as at 31 December 2022.

 

The Bank’s shareholders' equity witnessed a significant growth of 44% period-on-period, reaching MUR 16.7bn as at 31 December 2023 (December 2022: MUR 11.6bn). This significant expansion is attributed to the consistent rise in the Bank’s profitability.

 

In his own words, our Founder Executive, Mr. Thierry Vallet stated that: “Our solid financial results for the six months ended 31 December 2023 is the outcome of a far-sighted and customer-focused strategy to propel the Bank to new heights. Our strategy to deepen our existing clients’ relationships and acquire new clients, are paying off. With this sustained momentum and bolstered by our highly proficient employees, we remain assuredly confident about our future performance.