Statement of Profit or Loss and Other Comprehensive Income – Total Operating Income
KPI
The Bank forecasts total operating income of MUR 3.2bn for the FY19.
OUTCOME
The Bank achieved a total
operating income of MUR 3.7bn,
that is, an excess of 14% over
budget.
TARGET FOR NEXT FY
Due to challenging market
conditions, the Bank is expected
to achieve a marginal growth in
its total operating income for
FY20 at MUR 3.9bn.
Statement of Profit or Loss and Other Comprehensive Income – Total Operating Expenses
KPI
The Bank plans to maintain a disciplined culture towards its spending level and expects total operating expenses to be to the tune of MUR 1.1bn for the FY19.
OUTCOME
The Bank’s total operating expenses was at par with budget of MUR 1.1bn whilst continuing to invest in its people and to revamp its IT platform and to invest in new IT systems.
TARGET FOR NEXT FY
The Bank will further its IT strategy plan which will be reflected in an increase in overall IT costs (maintenance and amortization costs) as a major contributor to the increase in total operating expenses of the Bank at MUR 1.4bn in FY20.
Statement of Financial Position – Loans and Advances
KPI
Total loans and advances are expected to reach MUR 31.6bn and deposits from customers MUR 106.0bn at end of June 2019, that is, a loans-to-deposits ratio of 30%.
OUTCOME
In line with its conservative approach towards lending, the Bank’s gross loans and advances was MUR 30.1bn while customer deposits of MUR 131.2bn as at end of FY19, resulting in a lower than budgeted loans-to-deposits ratio of 21%.
TARGET FOR NEXT FY
The Bank’s gross loans and advances is expected to grow by 18% targeting to reach MUR 35.4bn by end of FY20, with customer deposits continuing to increase and reach MUR 156.5bn – this is expected to result in a loans-to-deposits ratio of 21%
Statement of Financial Position – Deposits from Customers
KPI
With total liabilities of MUR 106.9bn, customer deposits are expected to be MUR 106.0bn.
OUTCOME
Total customer deposits achieved a record growth and reached MUR 131.2bn, i.e., 24% over budget.
TARGET FOR NEXT FY
With total liabilities of MUR 157.6bn, customer deposits are expected to reach MUR 156.5bn.
Statement of Financial Position – Asset Quality
KPI
Non-performing loans and advances as a percentage of gross loans is expected to be maintained at 5%.
OUTCOME
The Bank’s non-performing loans and advances as a percentage of gross loans stood at 7% as at the end of FY19.
TARGET FOR NEXT FY
We expect our ratio of nonperforming loans and advances as a percentage of gross loans to be around to 6%.
Statement of Financial Position – Capital Management
KPI
Capital adequacy ratio will be maintained in conformity with the limits set under the regulatory framework.
OUTCOME
The Bank’s capital adequacy ratio stood at 15.85% at the end of June 2019, compared to 12.88% limit set by the Regulators.
TARGET FOR NEXT FY
Capital adequacy ratio will be maintained in conformity with the limits set under the regulatory framework.
Performance Ratio – Return on Average Equity
KPI
The Bank aims to attain a return on average equity of 20% by the end of the next FY.
OUTCOME
The Bank achieved a return on average equity above the budget of 25%.
TARGET FOR NEXT FY
The Bank aims to attain a return on average equity of 25% for FY20.
Performance Ratio – Cost to Income
KPI
The cost-to-income ratio is targeted at 35% for the next FY.
OUTCOME
With a disciplined approach towards spending along with a higher total operating income, the Bank achieved a cost-to-income ratio of 30%.
TARGET FOR NEXT FY
The cost-to-income ratio is targeted at 35% for the next FY due to more pressures on the Bank’s total operating income and an increase in its total operating expenses.