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AfrAsia Bank Limited and its Group Entities
Annual Report 2015
page 144
Looking ahead, international activities will remain an important constituent of the Bank’s business growth with the African region remaining
the key target in view of its attractive economic projections. The active market expansion and diversification, over the ensuing year, will be
supported by:
enhanced business relationship management and understanding of intrinsic needs of markets being serviced
setting up of new offices in targeted countries
continuous business process improvements
following sound risk management practices through client onboarding and transaction monitoring
TREASURY
The Bank’s Treasury activities are split between sales and trading. Its sales desk is focused on providing tailor made solutions on Foreign
Exchange and Interest Rates, while its trading desk is mandated to manage the Bank’s exposures in Foreign Exchange and Interest Rate
instruments.
The FX Trading desk manages the FX exposure of the Bank within the parameters set by the Bank of Mauritius and the Bank’s Board Risk
Committee, while the Money Market desk manages the assets and liabilities of the Bank on a proactive basis and ensures that returns are
maximised on both the MUR and FCY liabilities of the Bank, while providing good rates to clients.
HIGHLIGHTS
The main driver was the increase in FX volumes
from the Global Business segment, where the Bank
witnessed a 40% increase in FX volume from
FY 2013/14.
The most significant increase has been on the income
generated from client FX derivatives transactions
which amounted to MUR 45m compared to MUR 5m
in 2013/14.
The Bank experienced a steady increase in its
domestic banking volume to USD 1.1bn, representing
a 10% increase year-on-year.
TRADING INCOME
TOTAL FX GAIN AND
TRADING INCOME
SETTLEMENT
IN CURRENCIES
MUR
373m
OVER
100
MUR
471m
MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED)
Paul Tudor Jones
“
”
You may think you are in the business of trading. But in reality, you are in the business
of decision making. And the better you can make these decisions ahead of time,
the better your results will be.