Profits of Rs 14.8 billion for 9 months ending 31 March

 “Despite a challenging geopolitical backdrop and heightened economic uncertainty, the Group delivered a solid and resilient performance. Profit before tax increased by 13.0%, supported by continued expansion across our core activities and improving cost of risk. Higher taxation, however, weighed on net results, resulting in a more moderate growth of 2.8% in attributable profit. The strength of our financial performance for the nine months to March 2026 has enabled the declaration of an interim dividend of Rs 11.00, compared to Rs 10.50 last year.

Our risk profile remains robust, and the Group is well positioned to manage the uncertainties arising from the Middle East conflict. Balance sheet growth accelerated during the last quarter, driven by sustained momentum in commercial activities across both our home markets and foreign operations, in line with our Vision 2030 strategic ambitions.”

 
• Operating income increased by 8.3%, reflecting the continued expansion of the Group’s activities across all business lines.

• Net interest income increased by 7.6% and was supported by the continued growth in interest-earning assets. Overall margins, however, declined as improved yields on liquid assets were offset by lower margins on the foreign currency loan book.

• Net fee and commission income was up by 1.6%, with higher payments, wealth management and loan arrangement fees compensating for weaker trade finance activities.

• Net trading income grew by 43.7%, driven by an increase in FX transactions with both local and foreign customers as well as higher revenues from fixed income trading.

• The Group recorded a fair value loss of Rs 316 million on equity financial instruments mainly on investments of MCB Equity Fund, compared to gains of Rs 589 million last year. Of note, last year’s fair value gains related primarily to Visa and Mastercard shares whose fair value changes are no longer recognised in the income statement.

• Operating expenses increased by 17.9%, primarily due to higher staff costs linked to increased headcount in support of business growth, rising technology-related costs and increased contribution to the deposit insurance scheme in Mauritius. Consequently, the Group cost-to-income ratio increased to 39.0% compared to 35.8% last year.

• Impairment charges decreased by 56.1% to Rs 1,071 million, largely reflecting recoveries achieved during the period under review. As a result, the cost of risk decreased to 0.24% while the gross NPL ratio declined to 2.0% as at March 2026.

• The share of profit of associates increased by Rs 367 million on account of higher profit from BFCOI and Promotion and Development Ltd.

• Profit before tax increased by 13.0% to Rs 20,382 million.

• The Group’s tax charge increased by 51.0%, following the introduction of new fiscal measures introduced in Mauritius at the beginning of the financial year. Consequently, the effective tax rate for the nine months ended March 2026 rose to 27.0%, compared to 20.2% in the corresponding period last year.

• Profit attributable to ordinary shareholders increased by 2.8% to Rs 14,756 million, corresponding to an annualised ROE of 15.9%. Foreign-sourced activities of MCB Ltd accounted for 59% of Group profits. 

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