Commenting on the results, Pierre Guy Noël (Chief Executive - MCB Group Ltd) said: “Group profits for the half year to 31 December 2017 rose by 8.3% to reach Rs 3,644 million, with foreign-sourced earnings and non-banking operations contributing 58% thereto.

Operating income grew by 7.0% to reach Rs 8,244 million. Net interest income rose by 6.9%, reflecting increased revenues linked to foreign activities of MCB Ltd and higher investment in Government securities in a context of persisting excess liquidity situation in Mauritius. Net fee and commission income rose by 4.4%, supported notably by higher revenues from financing activities within the banking cluster and from our non-banking operations. In spite of a drop in profit on exchange and net gain on financial instruments carried at fair value, ‘other income’ rose by 10.8% boosted by net gains arising from disposal of equity investments.

Operating expenses grew by 10.2% in support of business expansion, leading to a rise in the cost to income ratio to 42.5%.

Net impairment charges stood at Rs 629 million, representing an annualised rate of 64 basis points of our gross loans and advances while the gross non-performing loan ratio declined below the 5% mark to stand at 4.8%.

Although an improved performance was recorded at BFCOI level, our share of profit of associates dropped by Rs 14 million following dampened performances at the level of PAD Group and SG Moçambique.

Shareholders’ funds increased to Rs 48.6 billion, with our capital adequacy ratio remaining comfortable at 18.3% as at December 2017, of which 16.0% in the form of Tier 1.

Looking ahead, the upturn within the global and regional environments is encouraging while domestic investment is anticipated to improve, in particular, fuelled by the execution of public infrastructure projects. Nonetheless, our operations continue to be impacted by persisting excess liquidity and challenging conditions in the money and foreign exchange markets. On current trends, full year results are expected to improve compared to last year with notable support from our international activities.”