AfrAsia Bank sees 68% rise in net profits
From Left to Right: James Benoit (CEO of AfrAsia Bank), Lynn Mukonoweshuro (Group CEO of Kingdom Financial Holdings Limited), Arnaud Lagesse (Chairman of AfrAsia Bank), Sibusisiwe Precious Bango (Chairman of Kingdom Financial Holdings Limited) and Nigel Chanakira (Founder and anchor shareholder of Kingdom Financial Holdings Limited) at AfrAsia Bank Limited, Port Louis, Mauritius.
Mauritius-based AfrAsia Bank saw a whopping 68 percent increase in after-tax profit to $9.7 million (Rs 303 million) for the financial year ended June 30 from $5.77 million (Rs 180 million) in the year-ago period.
The growth in profitability was mainly driven by growth in loans, advances, strong fees performance and trading activities.
However, negative returns from its investment made in Zimbabwe, mainly on the back of non-performing loans, adversely impacted its bottom-line. On the other hand, the other subsidiaries – AfrAsia Investments Limited, AfrAsia Corporate Finance (Africa) Limited and AfrAsia Corporate Finance (Pty) Limited – performed satisfactorily. The bank will be increasing its stake in the businesses to 100% wholly owned subsidiaries in the next quarter.
“AfrAsia Bank continues its ‘bank different’ strategy and is committed to serve its customers in the tough prevailing economic conditions which are creating many opportunities for our business model,” said James Benoit, AfrAsia Bank CEO.
“Regarding our Zimbabwe operations, we have put in place a robust governance process and a restructuring at shareholder, board and management levels has been initiated together with a capital raising exercise which is expected to turn-around the business immediately,” he added.
“Our strategy to be the reference bank and right platform to serve the increasing capital and trade flows linking Asia and Africa is starting to pay off and being acknowledged by businessmen and corporate, ” said Arnaud Lagesse, Chairman of the Bank.
“Regional and international growth remain the essential pillars in AfrAsia Bank’s growth strategies and our performance during the last few years, along with our increased and diversified capital base, is presenting many expansion opportunities. There are still countless opportunities to exploit in the Asia-Africa trade corridor, hence the bank’s decision to aggressively target COMESA and SADC markets,” he added.
The bank has already started to review other African banking investments to better serve its customers, as the core Mauritian, South African and Indian business areas have and continue to perform strongly for AfrAsia in its three customer segments. The financial services major is expected to announce more dynamic developments in the short term.
Source: Company Website
Headquartered in the Mauritius International Financial Centre, AfrAsia Bank Limited is a boutique financial services provider, with the ability to tailor innovative banking solutions for both the local and international market
Corporate and Investment Banking, Private Banking and Wealth Management, and International Banking Solutions are the three main segments of the financial major.
AfrAsia Bank’s core banking and transactional capabilities are also complemented by its asset management arm, AXYS Capital Management and its investment banking arm, AfrAsia Corporate Finance. In addition to the anchor Mauritian shareholder, GML, the largest conglomerate in the country, other strong strategic partners for the bank include PROPARCO (subsidiary of the Agence Française de Développement and other major financial institutions) and Intrasia Capital (Singapore).
With the establishment of banking representative offices in Cape Town and Johannesburg, the bank has cross-border capabilities to deliver tailor-made solutions with tangible benefits in an environment of trust. AfrAsia Bank’s regional expansion has been taken to a new level with the strategic acquisition of Kingdom Financial Holdings Limited, an investment holding company domiciled in Zimbabwe with interests in the banking and asset management sectors.
Source: Company Website