12 NOV 2026

Profits of Rs 5.4 billion for first quarter of FY 2026/27

The Group started the financial year 2026/27 on a solid footing, with profit attributable to ordinary shareholders up 9.9% to Rs 5,422 million, reflecting the continued resilience of our businesses in an increasingly challenging and uncertain operating environment.

Operating income increased by 11.7%, driven by the growth in business activity across our Home Markets and Corporate and Investment Banking and Private Banking businesses, which supported the continued expansion of our balance sheet. Asset quality remained sound, with a gross non-performing loan ratio improving to 1.8% while the annualised cost of risk stood at 0.5%. The Group maintained comfortable capital buffers and a strong liquidity position, providing a solid foundation to support our clients, execute our strategic priorities and advance our Vision 2030 ambitions.

Operating income increased by 11.7%, mainly driven by the growth in our activities in both the “Home Markets” and in “Corporate and Investment Banking and Private Banking” (CIBPB), which recorded an operating income growth of 8.0% and 15.1%, respectively.

Net interest income grew by 17.4%, reflecting the growth of the Group’s interest-earning assets portfolio despite a fall in the overall net interest margin.

• Rupee-denominated net interest income increased, supported by continued growth in the retail and corporate lending portfolios, alongside the reinvestment of liquid assets at higher yields, which contributed to an improvement in the rupee margin.

• Foreign currency (FCY) net interest income increased, supported by growth in both loans and advances and liquid assets. However, the FCY net interest margin declined, reflecting competitive pressures, the fall in the USD benchmark rate and a higher proportion of term deposits and borrowings in the funding mix.

Net fee and commission income increased by 3.8% resulting from the growth in trade finance income and higher wealth management fees, partly offset by lower income from payment activities following non-recurring losses related to card activities.

Net trading income was up by 7.2% to Rs 1,877 million, on account of higher FX trading and fixed income transactions.

Other operating income declined by 10.1% to Rs 277 million, mainly reflecting non-recurring gains realised on the sale of financial instruments in the first quarter of the previous year.

Non-interest expenses increased by 13.5% driven by inflationary pressures, higher staff costs linked to increased headcount, as well as higher professional fees and technology-related expenditure related to the implementation of initiatives to support the progress of Vision 2030. Consequently, the Group’s cost-to-income ratio increased to 36.4%, compared to 35.9% last year.

Impairment charges increased by 33.7% to Rs 809 million, mainly reflecting higher expected credit losses associated with the significant growth in loans and advances. This resulted in an annualised cost of risk of 50 basis points.

The share of profit of associates declined by 3.4% to Rs 170 million, mainly due to lower contributions from BFCOI and Promotion and Development Group.

The Group’s tax charge increased by 4.6% to Rs 1,967 million, corresponding to an effective tax rate of 26.5%.

Profit attributable to ordinary shareholders increased by 9.9% to Rs 5,422 million, equivalent to a return on equity of 16.0%, compared to 16.5% a year earlier. The Group’s results were supported by the performance within the banking cluster with income in Mauritius from foreign activities as well as foreign subsidiaries and associates accounting for an aggregate 69% of Group profits.

Press Release