Stakeholder engagement into our daily business functions brings three aspects of sustainability – economy, society and environment – to the heart of corporate value creation. As we assessed our business purpose in view of our wider role in society, we have aligned our business model and strategy with sustainable values, with the aim of co-generating positive outcomes for all stakeholders.


AfrAsia Bank closed its 11th year of operations with a commendable Net Profit after Tax and after Comprehensive Income of MUR 766.4m. Concurrently, the Bank remained focused on its sustainable development strategy, while pursuing its strategic objectives in the best interests of all its stakeholders including customers, employees and shareholders.


Confidence from the Bank’s Customers – The deposit base of the Bank has increased from MUR 91.1bn to MUR 111.4bn from end of June 2017 to end of June 2018, representing a growth of 22%. This demonstrates the strength of the AfrAsia franchise amongst customers, including international clients. Segment B deposits has indeed increased by MUR 16.0bn year on year to reach MUR 85.5bn...


Chief Financial Officer



Statement of Profit or Loss and Other Comprehensive Income – Total Operating Income
The objective for 2017/18 was to achieve MUR 3.2bn of total operating income. Slightly short by about MUR 0.3bn, the Bank achieved MUR 2.9bn of total operating income. The Bank forecasts total operating income of MUR 3.2bn for the financial year 2018/19.
Statement of Profit or Loss and Other Comprehensive Income – Total Operating Expenses
The Bank expected to continue spending in the core areas of IT and human capital over the financial year and end with total operating expenses of MUR 1.1bn for 2017/18. While promoting a cost monitoring policy of its operating expenses, the Bank pursued its planned level of investment in IT, human capital and infrastructure and closed its financial year with total operating expenses amounting to MUR 927.4m. The Bank plans to maintain a disciplined culture towards its spending level and expects total operating expenses to be to the tune of MUR 1.1bn for the financial year 2018/19.
Statement of Financial Position – Loans and Advances to Customers
It was envisaged that the Bank will close the financial year with a loan to deposit ratio of 34%. Conservative lending with continued growth in the Bank’s deposits base explains the subdued loan to deposit ratio of 25%. Total loans and advances to customers are expected to reach MUR 31.6bn and deposits from customers MUR 105.7bn at end of June 2019, that is, a loan to deposit ratio of 30%.
Statement of Financial Position – Deposits from Customers
The Bank was on the right track and was expected to increase its customer portfolio to MUR 108.1bn. Focus around customer centricity reflects a growth in the Bank’s customer base above the target of MUR 108.1bn, that is 3% to close on MUR 111.4bn year on year. With total liabilities of MUR 106.6bn, customer deposits are expected to be MUR 105.7bn.
Statement of Financial Position – Asset Quality
The Bank’s target was to close with a non-performing loans and advances as a percentage of gross loans at 5%. The Bank achieved its target of 5% of non-performing loans and advances as a percentage of gross loans. Non-performing loans and advances as a percentage of gross loans is expected to be maintained at 5%.
Statement of Financial Position – Capital Management
The Bank undertakes to meet its capital adequacy ratio as required under the Basel III provisions. The Bank’s capital adequacy ratio stood at 14.7% as at the end of June 2018, compared to 12% limit set by the Regulators. The Bank is considered as Domestic Systemically Important Bank (D-SIB). Capital adequacy ratio will be maintained in conformity with the limits set under the regulatory framework.
Performance Ratio - Return on Average Equity
The target was to achieve a return on average equity of 23%. The Bank closed its financial year with a return on average equity of 14%. The Bank aims to attain a return on average equity of 20% by the end of the next financial year.
Performance Ratio – Cost to Income
It was intended to achieve a cost to income of 34% for the financial year 2017/18. The Bank’s cost to income ratio stood at 32% for the year under review. The cost to income ratio is targeted at 35% for the next financial year.