confidence - Investing In Africa

Management Discussions & AnalysisFinancial ReviewFINANCIAL INDICATORS98Restated 12005 2004 2003 2002 2001Consolidated Profit & Lossfor the year ended June 30 (MRs million)Net Interest Income 1,625 1,481 1,365 1,282 1,198Non Interest Income (excluding Profits of Associates) 789 888 665 543 436Non Interest Expense 922 905 769 681 594Depreciation 245 194 202 200 152Net Income before Income Taxes & Provision for Credit Losses 1,580 1,530 1,330 1,198 1,094Net Income before Income Taxes 1,501 1,366 1,186 1,029 991Net Income before Income Taxes Grossed Up 1,536 1,415 1,263 1,154 1,129Net Income after Income Taxes 1,196 1,130 1,021 959 879Net Income available to Shareholders 1,191 1,127 1,018 952 871Consolidated Balance Sheet as at June 30 (MRs Million)Total Assets (including contra items) * 57,346 51,300 46,912 43,353 37,039Total Assets (excluding contra items) 48,607 42,258 38,418 34,245 31,283Deposits from Non-Banks 34,901 32,796 29,182 26,150 24,473Loans and Advances to Customers 24,502 22,672 21,566 21,279 20,702Gilt-Edged Securities 9,397 11,089 9,184 5,892 3,764Total Shareholders' Funds 8,183 6,135 5,139 4,887 4,281Total Tier 1 Capital 5,536 4,740 4,907 4,656 4,075Market Capitalisation 10,440 8,910 6,388 4,475 5,355Weighted Risk Assets 3 30,999 28,694 26,276 21,943 21,060Consolidated Balance Sheet (Average 2 MRs Million)Average Assets 45,357 38,928 34,858 32,665 29,235Average Shareholders' Funds 7,744 5,859 5,194 4,724 4,084Average Working Funds 42,951 37,753 34,695 32,438 29,095Average Tier 1 Capital 5,338 4,683 5,031 4,496 3,945Average Loans and Advances to Non-Banks 24,170 22,241 21,014 21,149 20,306Average Deposits from Non-Banks 32,885 29,555 26,190 24,876 22,162Average Gilt-Edged Securities 9,395 9,424 7,404 4,690 3,242Average Interest Earning Assets 37,921 33,613 29,916 28,223 25,477Average Interest Bearing Liabilities 36,182 32,059 28,571 26,946 24,151Per Ordinary ShareEarnings per share (Rs) 3.66 3.46 2.84 2.62 2.40Dividend (Rs) 1.30 1.20 1.10 1.00 0.90Book Value (Rs) 25.17 18.87 15.29 13.45 11.78Market Price (Rs) 27.30 23.30 16.70 11.70 14.00Dividend Yield (%) 4.76 5.15 6.59 8.55 6.43Earnings Yield (%) 13.42 14.86 16.99 22.38 17.13Price Earnings Ratio (times) 7.45 6.73 5.89 4.47 5.84Dividend Cover (times) 2.82 2.89 2.85 2.62 2.66Performance Ratios (%)Risk Adjusted Return on Capital (RAROC) 38.09 39.08 N/A N/A N/ACapital to Weighted Risk Assets 3 21.78 17.79 18.16 20.55 18.70Net Income before Income Taxes**/ Average Weighted Risk Assets 4 5.15 5.15 5.24 5.37 5.51Net Income before Income Taxes**/ Average Assets 3.39 3.63 3.62 3.53 3.86Net Income before Income Taxes**/ Average Working Funds 3.58 3.75 3.64 3.56 3.88Net Income before Income Taxes**/ Average Shareholders' Funds 19.83 24.15 24.32 24.41 27.64Net Income before Income Taxes**/Average Tier 1 Capital 28.77 30.21 25.11 25.65 28.62Recurring Earning Power 3.28 3.76 3.62 3.50 3.48Return on Average Weighted Risk Assets 4 4.01 4.11 4.23 4.46 4.29Return on Average Assets 2.64 2.90 2.93 2.94 3.01Return on Average Working Funds 2.79 2.99 2.94 2.96 2.94Return on Average Shareholders' Funds 15.45 19.29 19.65 20.31 21.54Return on Average Tier 1 Capital 22.41 24.13 20.29 21.34 22.28Efficiency Ratios (%)Cost to Income (grossed-up for tax exempt debentures) 38.91 40.15 39.17 38.24 35.73Cost to Income (Before Depreciation) 28.55 31.55 28.88 27.01 26.61Other Key Data as at 30 June 2005Number of Employees 901 887 877 839 799Number of Employees - (Mauritius) 842 833 818 779 738Number of Employees - (Overseas) 59 54 59 60 61Number of Service Units 47 47 46 46 48Exchange Rate (US $: MUR) 29.47 28.15 29.25 30.01 29.14* Commitments for 2001 have not been restated.** Grossed up for tax exempt debentures.1Restated for comparative purposes .2Averages are based on daily balances as from 2003. Prior two years are based on monthly balances.3Risk Assets are computed as per regulatory requirement based on credit as well as operational risks of the Group as from 2003.4Average Weighted risk assets are calculated using year end balances.