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AfrAsia Bank Limited and its Group Entities
Annual Report 2015
page 156
FINANCIAL HIGHLIGHTS – YEAR UNDER REVIEW
AfrAsia Bank Limited (The Bank) closed its 8
th
financial year ending 30 June 2015 reporting a satisfactory Net Profit after Tax of MUR 175m,
while maintaining a solid statement of financial position consolidating its capital base and gaining on market share across all its core
business segments of:
C
orporate and Investment Banking
Global Business
Private Banking and Wealth Management
Treasury
Despite a volatile global economic environment coupled with conflicting interest rate direction, on a year-over-year basis, AfrAsia Bank
Limited reported a steady growth in its net interest income from MUR 659m to MUR 861m in the year under review, along with net fee
income growth of 34% as compared to the same period in the last year. Net trading income growth was strong, with an increase of almost
92% over the previous year. The Bank also fully provided for its remaining exposure on its Zimbabwean investment, which was closed due
to persisting liquidity challenges in Zimbabwe during the year under review. Such an exposure has affected the statement of profit or loss
and other comprehensive income of the Bank by MUR 707m during the year.
On the assets side, the Bank successfully grew its loan book by MUR 4,3bn across both segments while maintaining a relatively conservative
overall loan to deposit ratio of 32%, reflecting its objective of meeting credit demand while maintaining assets quality in its loan portfolio.
CURRENT YEAR PERFORMANCE AGAINST OBJECTIVES AND FUTURE GROWTH
OBJECTIVES FOR 2014/15
PERFORMANCE FOR 2014/15
OBJECTIVES FOR 2015/16
Statement of Comprehensive Income – Operating Income
Budgeted operating income
for 2014/15 stands at MUR 1,3bn,
main contributor being
Net Interest Income
Objective has been successfully realised with
an operating income of MUR 1,6bn for the
financial year 2014/2015.
The Bank’s aim is to achieve an operating
income of at least MUR 1,9bn for 2015/16.
Statement of Comprehensive Income – Operating Expenses
Operating expenses are expected to
remain as low as MUR 653m with an
increase of 31% from actual expenses.
Well-managed operating expenses were kept
within MUR 590m for the year under review.
While continuing to invest in IT infrastructure,
premises and human resources, operating
expenses are expected to remain as low as
MUR 768m, that is, an increase of 30% from
2014/15.
Statement of Financial Position – Loans and Advances
Loans and Advances are expected to
stand at MUR 22,1bn.
Slightly under its forecast, customer loans
and advances reached MUR 21,7bn by the
end of the financial year.
The Bank will seek to increase its very
conservative current loans-to-deposits ratio
from 32% in 2015 to reach 43% in 2016, that
is, with an aim to achieve customer loans and
advances of MUR 32,9bn by the end of June
2016.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED)