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AfrAsia Bank Limited and its Group Entities
Annual Report 2015
page 39
Future Outlook
Indeed the environment is in constant change. Major trends
are already reshaping the global economy. The centre of gravity
of the global economy is irreversibly moving to the Africa–Asia
axis, coupled with the urbanisation of population in Asia and
Africa as a new middle class of consumers emerges; and the
disruption of industries with the progress and innovation in the
information, communication and technology sector. Your Bank
is well-positioned to ride on the waves of these trends.
The Bank will leverage on the key attributes of its four main
shareholders, namely the entrepreneurial spirit and mind-set
of its major and founding shareholder, GML Group, to offer a
unique suite of banking services to the family owned business
and their founders of Africa; the banking and risk management
skills of the National Bank of Canada, to offer sector specific
financing and risk management solutions to companies in the
region, with an emphasis on Africa; the network of the investee
companies of PROPARCO to expand the Bank’s network of
collaboration in Africa and the business network in Africa and
Asia of Intrasia Capital to develop new business relationships.
The Bank has now reached a level where it can count on a
stable stream of profitability and cash flow. It is well equipped
to forge ahead and assume a greater responsibility in society
that transcends its primary objective of profit maximisation for
its shareholders.
Risk and Return Balance and Strategy
We shall continue to ensure that the Bank achieves a target
return on average equity capital commensurate with the risk
inherent to our banking franchise. This will require that the Bank
clearly defines its risk appetite and then judiciously deploys its
capital to maximise the return on its capital according to this
risk parameter.
Sustainability
AfrAsia Bank Limited continues to incorporate sustainability
approaches to the way it conducts business. Across society, the
workplace and the communities it serves, the Bank embraces
Environmental, Social and Governance considerations (ESG)
to align with its corporate strategy and uphold its sustainability
structure.
On a deeper level, the Bank will ensure that each and every
member of its staff becomes fully conscious and aware of being
a Human Being and not just a Human Doing. While the Bank fully
assumes its responsibility as a corporate citizen, it is equally
important that the business and regulatory environment remain
supportive.
The Mauritius Financial Centre
It is a great concern that the Centre’s reputation has been
recently affected. This now requires the full effort of all members
of the financial centre ecosystem to work together to improve
our international image.
Fully aware that banking is a highly regulated industry, we
fully support all efforts that enhance the reputation of the
Mauritius financial centre as a well-regulated and supervised
jurisdiction with independent regulatory institutions. However,
it is imperative that Mauritius maintains its competiveness by
keeping the cost of compliance at a reasonable level. We are
thus proponents of a risk-based approach to supervision and
in effective collaborations between the regulator and industry
participants in the development of regulation and supervision
guidelines. Mauritius is an emerging financial centre focused on
serving the banking and capital raising needs of Africa. There is a
need to take into account the specific environment of our region
in crafting the regulatory and supervisory framework. Otherwise
there is a risk of creating road blocks to its development and
rendering the centre less competitive.
Time to be grateful
In the course of the year, one independent director, Mike Pike,
retired as per the current banking regulation, having served the
seven years. We thank him for his contribution.
I also extend my heartfelt gratitude to James Benoit and
Kamben Padayachy who resigned from their respective posts
of Chief Executive Officer and Deputy Chief Executive Officer,
Head of Global Banking, Treasury & Markets, for their helpful
contribution and strategic direction throughout their journey at
the Bank. I would also like to thank, Thierry Vallet, Acting CEO
for his leadership during the transition period.