| KEY PERFORMANCE INDICATORS | OUTCOME | TARGET FOR THE NEXT FINANCIAL YEAR | |
|---|---|---|---|
| TOTAL OPERATING INCOME | Due to impact of COVID-19 and growing uncertainty on the market, the Bank is expected to achieve a lower total operating income for FY21 standing at MUR 2.4bn. | The Bank achieved a total operating income of MUR 2.6bn, that is, 6% above budget. | Recovering from the impact of COVID-19, the Bank is expected to achieve a circa 4% higher total operating income for FY22 vis-à-vis last year. |
| TOTAL OPERATING EXPENSES | With the current pressures on its revenue the Bank has been applying a cost containment strategy for FY21 to ensure its total operating expenses be kept at par compared to FY20 at MUR 1.3bn. | The Bank’s total operating expenses was MUR 1.1bn, consistently investing in its human capital, information technology and infrastructure. | From a cost containment strategy for FY21, the Bank is now expected to invest in its human capital and IT infrastructure, thus an approximate increase of 18% in total operating expenses |
| LOANS AND ADVANCES | A lower loans-to-deposits ratio of 17% is expected as a result of gross loans and advances dropping to MUR 28.0bn due to the growing uncertainty around COVID-19 impact in FY21. Growth in customer deposits is expected to be a mere MUR 2.3bn. | While the Bank remained conservative in its lending strategy, gross loans stood at MUR 28.1bn whilst our deposit base continued to grow quite consequentially. The loans-todeposits ratio stood at 14%. | A higher loans-to-deposits ratio of 18% is expected as a result of gross loans and advances with anticipated growth of around 14%. |
| DEPOSITS | Customer deposits are expected to reach MUR 153.2bn. | Our deposit base showed huge promise as it grew to MUR 179.2bn (19% y-o-y). | Customer deposits are predicted to show a contraction of about 9%. |
| ASSET QUALITY | Due to increased uncertainty regarding COVID-19 which has a direct impact on loan book, NPA ratio is expected to reach 11%. | The Bank’s non-performing loans and advances as a percentage of gross loans stood at 9%. | NPA ratio as a percentage of gross loans is expected to be at 7% at end of FY22. |
| CAPITAL MANAGEMENT | Capital adequacy ratio will be maintained in conformity with the limits set under the regulatory framework. | The Bank’s capital adequacy ratio stood at 16.18% at the end of June 2021, compared to a limit of 12.88% set by the regulators | Capital adequacy ratio will be maintained in conformity with the limits set under the regulatory framework. |
| RETURN ON AVERAGE EQUITY | Return on average equity is expected to be of 8% for FY21. | Return on average equity stood at 11%, 3% above the target. | Return on average equity is expected to be of 9% for FY22. |
| COST-TO-INCOME | The cost-to-income ratio is expected to be around 55% due to a contraction in the total operating income of the Bank. | As the Bank promoted finding the right equilibrium between income and expenses, the costto-income ratio stood at 42%, 13% below the target. | The cost-to-income ratio is expected to be around 50% due to a contraction in the total operating income of the Bank. |