AfrAsia Bank reported strong results for the nine months ended 31 March 2024 with a Net Profit After Tax of MUR 5.4bn which represents a year-on-year growth of 43%.

The Bank reported strong results for the nine months ended 31 March 2024 with a net profit after tax (“NPAT”) of MUR 5.4bn. This represents an increase of 43% compared to the same period last year (March 2023: MUR 3.8bn). The Bank has continued on a strong growth trajectory marked by sustained core earnings and a high yield market.

 

Net interest income, the major driver behind the rise in NPAT, increased by 39% to reach MUR 5.3bn for the current period compared to MUR 3.8bn for the same period last year.  These performances have been driven by the expansion of our interest-bearing assets, coupled with the sustained high interest rate environment.

 

Net trading income, another important contributor to the NPAT, grew by 22%, reaching MUR 1.4bn for the nine months ended 31 March 2024 compared to MUR 1.1bn for the same period last year. This increase was mainly on account of rising yields for our trading portfolio and fair value gains on debt instruments.

 

Net fee and commission income rose by 13%, rising from MUR 603.4m for the period ended 31 March 2023 to MUR 682.8m for the period ended 31 March 2024. This growth was mainly attributed to increased income from card business and commissions received from higher volume of transactions during the current period.

 

The Bank recorded a net impairment credit on financial assets of MUR 165.6m, compared to a charge of MUR 16.0m for the same period last year. The release in impairment for the current period resulted from recovered bad debts, payment of impaired facility, decreased exposures in stage 2 and adjustments to the probability of default term structure and forward-looking information scalars. The Bank continuously monitors prevailing economic conditions and adjusts its impairment assessment accordingly.

 

Operating income increased by 33%, while operating expenses declined by 16% compared to the same period last year. The cost-to-income ratio decreased to 16% as of 31 March 2024 as compared to 26% for the same period last year.

 

The Bank’s balance sheet is robust, with total assets attaining MUR 259.2bn as at 31 March 2024, reflecting a 9% rise compared to MUR 238.1bn as at 31 March 2023. Loans and advances grew actively by 20% to reach MUR 58.2bn as at 31 March 2024 (March 2023: MUR 48.4bn), leading to a slight increase in the loan-to-deposit ratio to 24% from 22% for the same period last year. On the liability side of the balance sheet, the Bank’s deposit base rose from MUR 222.9bn as at 31 March 2023 to MUR 238.5bn as at 31 March 2024, representing a growth of 7%. This reflects the continuous trust and confidence of our customers in the AfrAsia brand.

 

The total capital adequacy ratio of the Bank stood at 18.96% as at 31 March 2024 compared to 19.01% as at 31 March 2023.

 

The Bank’s shareholders' equity witnessed a significant rise of 39% period-on-period, reaching MUR 18.6bn as at 31 March 2024 (March 2023: MUR 13.4bn). This notable expansion is attributed to the consistent rise in the Bank’s profitability.

 

 

 

In his own words, Thierry Vallet, Founder Executive and CEO of AfrAsia Bank affirms that:

 

“Our strong financial performance for the nine months ended 31 March 2024 reflects the full commitment of our team, our customer-centric approach, and our innovative strategies. Despite challenges, our vision guides us forward, strengthening relationships and expanding our domestic as well as international market footprint, thus demonstrating our agility amidst complex market dynamics. With the continued dedication of our talented team, we maintain a confident outlook for our future performance.

 

I am equally honoured to announce that AfrAsia Bank was awarded two prestigious awards from Global Finance: The Best Bank 2024 and the Best FX Bank 2024 in Mauritius. These accolades further highlight our commitment to service excellence through compelling value propositions for our clients, grounded in our Bank Different philosophy and our entrepreneurial drive.”