AfrAsia Bank Achieves 136% Year on Year Profit Surge

AfrAsia Bank has continued its growth trajectory for the first quarter ending on September 30, 2023, reporting a net profit after tax of Rs 1.7 billion. This marks a 136% increase compared to September 2022, which stood at Rs 700 million, driven by consistent growth in performance levels.

The bank’s surge in net profits during the period can be primarily attributed to a substantial increase of 95% in net interest income, reaching Rs 1.8 billion for the current period compared to Rs 900 million for the previous period.

This reflects the successful execution of the bank’s strategy to strengthen its balance sheet through the expansion of its loan portfolio and investment securities while managing the impact of the economic environment on interest rates.

Net commission income also witnessed a 15% increase, rising from Rs 198.4 million for the period ending on September 30, 2022, to Rs 228.7 million for the same period in 2023.

This growth was primarily supported by an increase in transactional banking operations.

Operating income posted a growth, increasing from the previous year. Loans and advances rose by 31% to reach Rs 54.6 billion as of September 30, 2023, contributing to a rise in the loans-to-deposits ratio to 26% compared to last year’s 20%.

Source: l’Express