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The Bank’s asset base grew by 15% (MUR 20.6bn) and reached MUR 160.5bn by end of this year under review. This growth was primarily in cash and cash equivalents and due from banks and investment securities, while loans and advances and other assets were relatively stable when compared to last FY.

The bisection of the asset book sat in cash and cash equivalents and due from banks with an increase of MUR 16.5bn in 2020 as compared to the prior year. Investment securities increased by MUR 3.4bn (7%) primarily to upper possession of debt instruments at amortised cost; representing 30% of total assets.

Other assets, with its foremost component being mandatory balances with the Central Bank (MUR 2.2bn), did not experience major change. Furthermore, the proportion of the Bank’s total assets to Segment B represented 65% in 2020 which represents a slight increase when compared to 64% in 2019.

An industry analysis of the Bank's financial assets, without taking account of any collateral held or other credit enhancements, is as follows:

Sectors – MUR’m 2018 2019 2020
Total Total Total
Agriculture 2,026 510 1,095
Construction, infrastructure and real estate 1,780 1,119 1,944
Financial and business services 102,121 121,014 98,914
Government and parastatal bodies 1,489 479 35,408
Information, communication and technology 46 17 254
Manufacturing 2,781 2,726 4,673
Personal 1,706 1,912 2,374
Tourism 2,413 3,166 4,538
Traders 1,561 1,551 5,342
Others 4,884 8,700 7,529
Total 120,807 141,194 162,071

Overall, as depicted in the chart below, the Bank fostered its risk diversification over its assets, this can be represented by:

Cash and cash equivalents and due from banks

  • MUR 2.7bn (LCY) - 3%
  • MUR 77.4bn (FCY) - 97% of which MUR 53.9bn (USD) - 67%

Loans and advances

  • MUR 6.5bn (LCY) - 23%
  • MUR 21.8bn (FCY) - 77% of which MUR 15.3bn (USD) - 54%

Investment securities

  • MUR 17.9bn (LCY) - 37%
  • MUR 30.8bn (FCY) - 63% of which MUR 28.9bn (USD) - 60%


With the conservative approach towards its lending strategy, the Bank’s net loans and advances went up slightly by 0.4% at MUR 28.3bn this year slightly geared more towards Segment B representing 55%. Loans and advances with contractual maturities over 12 months represented 58% of total loans in 2020.

As at 30 June 2020, the Bank has restructured multiple of its loan facilities that can be aggregated to MUR 5.3bn, out of which, in line with the COVID-19 forbearance policy amounted to MUR 5.1bn.

As at 30 June 2020, the credit portfolio of the Bank had a well-variegated credit portfolio with a distributed concentration across different sectors, same is tabulated below:

Sectors – MUR’m 2018 2019 2020
Total Total Total
Agriculture and fishing 1,626 510 1,054
Manufacturing 2,781 2,726 4,114
Tourism 2,381 3,164 3,902
Transport 430 364 380
Construction, infrastructure and real estate 1,779 1,119 1,934
Financial and business services 9,479 10,395 7,985
Traders 1,560 1,568 3,385
Personal 1,735 1,949 2,372
Professional 4 457 1
Information, communication and technology 46 251 247
Government and parastatal bodies 1,299 102 386
Global Business Licence holders (“GBL”) 2,614 2,578 457
Other entities 3,607 4,914 4,474
Total 29,341 30,097 30,691

Please refer to Note 41 (X) in Section B for details on segmentation.


The Bank’s allowance for impairment losses denote estimated losses correlated to impaired loans in the portfolio provided for but not yet written off, and allowances for performing loans, which is our best guesstimate of impairment in the existing portfolio for loans that have not yet been individually identified as impaired. Our approach to establishing and maintaining the allowance for performing loans is based on the requirements of IFRS. Under the IFRS 9 – “Financial Instruments”, an allowance is recorded for ECL on financial assets regardless of whether there has been actual impairment. The ECL methodology is based on a 3-stage model:

ECL – Stage 1

MUR 163.4m

ECL – Stage 2

MUR 15.7m

ECL – Stage 3

MUR 2.2bn

Allowance for impairment losses encompasses ECL stage 3 provisioning, which increased from MUR 1.6bn in 2019 to MUR 2.2bn in 2020. Segment B makes 78% of the total allowance for impairment losses. MUR 506.3m of loans and advances to customers have been written off against provisions in 2020, 77% being in Segment B.


The Bank’s NPA increased to MUR 2.8bn at end June 2020 as compared to MUR 2.2bn for the same period in 2019. Consequently, it is to be noted that the Bank’s NPA ratio was 8% (2019: 7%).

Coverage ratio

Coverage ratio is measured as the percentage of stage 3 (specific) impairment over total NPA. As a matter of fact, the Bank coverage went up from 65% in 2019 to 76% in 2020.

*The above includes interest component.

The breakdown of loans and advances vis-à-vis the non-performing portion and its relative provision by sector remains an interesting piece of discussion and analysis, same is tabulated below:

Sectors – MUR’m 2020
Gross amount of loans Non-performing loans Stage 3 ECL
Segment A Segment B Segment A Segment B Segment A Segment B
Agriculture and fishing 436 618 - 425 - 209
Manufacturing 307 3,807 150 - 150 -
Tourism 3,385 517 - - - -
Transport 35 345 - 209 - 189
Construction, infrastructure and real estate 1,333 601 111 - 82 -
Financial and business services 2,490 5,495 - 1,040 - 880
Traders 2,052 1,333 14 - 14 -
Personal 1,736 636 91 7 59 1
Professional 1 - 1 - - -
Information, communication and technology 247 - 166 - 114 -
Government and parastatal bodies 386 - - - - -
GBL - 457 - - - -
Other entities 891 3,583 - 615 - 524
Total 13,299 17,392 533 2,296 419 1,803

In analysing the different sectors in the Bank’s portfolio, the sector which is most provided for are within the Financial and business services followed by the transport sector and manufacturing sector. Looking at the figures through year-on-year lenses, the major highlights are; the total provision in the financial and business services which showed a strong 100% augmentation and the manufacturing sector which saw a drop of 61%.


A lower than expected loans-to-deposits (“LTD”) ratio was achieved in 2020, that is, 19% compared to 21% last year. This ratio can be further broken down into LCY at 34% and FCY at 17%. The driving force behind the falling LTD ratio is at the back of rising deposits from customers greater than the rise observed in loans and advances.


Investment securities which is held in either its trading or banking book grew by 7% to reach MUR 48.7bn as at 30 June 2020 (2019: MUR 45.3bn) with the majority investments being in Government papers both on domestic and global fronts.

The currency split as from 30 June 2020 stands as LCY MUR 17.9bn and FCY MUR 30.8bn (of which USD MUR 28.9bn).

Mandated by IFRS 9, the investment securities are categorized as follows:

  • Debt instruments at fair value through profit or loss (“FVTPL”);
  • Debt instruments at fair value through other comprehensive income (“FVTOCI”);
  • Debt instruments at amortised cost (“AC”); and
  • Equity Investment at fair value through other comprehensive income (“FVTOCI”).

The main constituents can be illustrated as follows:


The Bank’s conservative tactic towards loaning being maintained, the majority of our asset book remained in the form of Bank’s monies held with other banks which moved upwards from MUR 63.7bn to MUR 80.2bn between 2019 and 2020, the main components remain the following:

  • Nostro current accounts;
  • Placements with other banks; and
  • Collateralised placements.

Nostro current accounts were bolstered by 76% from MUR 16.9bn to MUR 29.6bn, placements with other banks rose by 8% from MUR 40.2bn to MUR 43.5bn of which MUR 36.4bn in USD and collateralised placements experienced an increase of 6% from MUR 6.6bn to MUR 7.0bn in 2020 which are money lent to local banks.


A transformative technological journey can be protracted and winding, while the customary approach concerning capital investments does not upkeep fast pivots or allow the business to rapidly capitalize on innovation breaks, the Bank still has a hostile expectation for achieving significant return on investment on innovative technologies. Thus, an ample amount of our capital expenditure was channeled towards banking software, computer software and computer equipment, the key highlights for the year can be presented as follows:

Capitalisation of Assets in Progress:

  • Improvement to buildings – MUR 0.5m
  • Furniture and fittings – MUR 0.7m
  • Office equipment – MUR 0.1m
  • Computer equipment – MUR 8.9m


  • Motor vehicles – MUR 5.3m


  • Computer equipment – MUR 14.4m
  • Motor vehicles – MUR 2.8m
  • Office equipment – MUR 1.6m
  • Furniture and fittings – MUR 4.5m
  • Assets in progress – MUR 0.6m

For further details of property and equipment, intangible assets and rights of use assets, please refer to Note 19, 20 and 21 respectively in Section B. 



This financial year was stigmatized by two headlines concerns being the ongoing global pandemic and the classification of Mauritius in the EU blacklist. While the Bank needed to provide its clients with the optimal reassurance with the principal pledge of delivering a purpose beyond banking, the confidence of the client base in the Bank created positive ripples in this cataclysmic environment. As a result, the Bank’s deposits base grew from MUR 131.2bn end of June 2019 to reach MUR 150.9bn by the end of June 2020 i.e. a growth of 15%.

Split of customer deposits base was as follows:

  • Current accounts MUR 107.5bn, that is, 71% of total deposits and 18% growth year-on-year;
  • Savings accounts MUR 6.0bn, that is, 4% of total deposits and 18% growth year-on-year; and
  • Fixed deposits MUR 37.4bn, that is, 25% of total deposits and 6% growth year-on-year.
MUR 5.0bn (LCY) - 5% MUR 102.5 bn (FCY) - 95% of which MUR 71.5bn (USD) - 66% MUR 6.0bn (LCY) MUR 8.2bn (LCY) - 22% MUR 29.2bn (FCY) - 78% of which MUR 27.0bn (USD) - 72%Current AccountsSavings AccountsFixed Deposits


ABL’s shareholders’ equity grew by MUR 0.9bn to reach MUR 8.6bn, i.e., 12%. During the year, the Bank paid MUR 576.7m as dividend (2019: MUR 333.5m) with MUR 429.3m as Ordinary dividend (2019: MUR 186.4m), representing 30% payout and MUR 147.4m Class A dividend (2019: MUR 147.1m).

On the Regulatory side, in line with the capital requirements and regulatory forbearance measures from the Central Bank, the Bank remained well capitalised with a total capital base (“TC”) of MUR 8.4bn representing an increase of 9% year-on-year along with Common Equity Tier 1 (“CET1”) of MUR 6.7bn, Tier 1 (“T1”) of MUR 8.0bn and Tier 2 of MUR 0.4bn.

Risk-weighted assets rose by MUR 6.6bn representing 14% rise year-on-year resulting from a rise in balance sheet size of the Bank.

Total CAR dropped by 70 basis points compared to last year reaching 15.15% against an unchanged regulatory limit of 12.88%, and is well above the limit. Being a Domestic Systemically Important Bank, the Bank is required to maintain an additional 1% above the regulatory limit of 11.88% for non-DSIBs.

Note: All of the above includes forward-looking statements and that risks exist that forecasts, projections and assumptions contained therein may not materialise and that actual results may vary materially from the plans and expectations. The Bank has no plan to update any forward-looking statements periodically.

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