The strong increase in overall operating profit was driven by an 80% increase in net interest income and an 86% increase in net trading income; with net operating income after credit provision crossing the R350.9m ($32.9m) mark, a 50% increase from the previous year.
The bank, with representative offices in South Africa and London, has grown significantly whilst pursuing regional expansion across its core business lines of Corporate Banking, Private Banking & Wealth Management and International Banking.
As of 30 June 2014, AfrAsia had customer loans and advances at R6.1bn ($570m) (a 24% increase from 2013) and customer deposits of R14.4bn ($1.4bn), a 51% increase from 2013. Total assets grew to R16.5bn ($1.5bn) which is a staggering 50% increase from the previous year.
To support its rapid growth, AfrAsia raised additional capital totalling R487.7m ($46m) in the form of Class A shares from a broad range of investors. This capital raising has helped to strengthen the bank's capital base with AfrAsia posting a capital adequacy ratio of 13.1%. It also positions AfrAsia for continued growth in the future.
"AfrAsia Bank continues its 'bank different' strategy as we gain strength while looking for more investment opportunities across Africa. Our figures prove once again the tenacity and strong-will of our bank and we will continue to steer in this direction," comments James Benoit, AfrAsia Bank CEO.
There have been challenges however, mostly in its Zimbabwe operations following the unfavourable liquidity situation the country's banking sector has been facing for some time. AfrAsia Bank is working closely with the regulatory authorities who have shown their support to the bank's initiatives. Various options are being examined by both AfrAsia Zimbabwe Holdings and AfrAsia Bank in its quest to find the best possible solution to stem this issue. Most importantly, operations have not been affected by the issues faced in Zimbabwe.
The bank continues to invest in consolidating its brand, investing in its people and in IT infrastructure to ensure that growth is done in a conservative and disciplined manner.
"Our strategy to be the reference bank and right platform to serve the increasing capital and trade flows linking Asia and Africa is paying off," says Arnaud Lagesse, chairman of the bank. "Regional and international growth remain the essential pillars in AfrAsia Bank's growth strategy, and our performance during the last few years, along with our increased and diversified capital base, is presenting many expansion prospects. There are still countless opportunities to grow and expand upon the Asia-Africa trade corridor, hence the decision for the bank to look closely at the COMESA and SADC markets."
