14 MAY 2024

MCB Group posts profits of Rs 12.4 billion


The Group delivered a strong set of results for the nine months ended March 2024 with profit attributable to ordinary shareholders increasing by 14.6% to Rs 12.4 billion. 

Alongside benefitting from the high global interest rate environment, core earnings were further boosted by sustained growth in business activities within the banking cluster. We upheld a robust risk profile with a stable cost of risk and NPL ratio while maintaining a strong capital position as evidenced by a Tier 1 ratio of 18.6%. The Group’s solid fundamentals and performance continue to allow us to provide sustainable returns to our shareholders. Indeed, we are pleased to declare an interim dividend of Rs 9.50 per share in 2024 (Rs 8.50 in 2023).


The key highlights of the Q3 2024 results are summarised below:-

  • Operating income grew by 20.8% to Rs 27,769 million, on the back of a resilient domestic performance and an enhanced contribution from international activities within the banking cluster.
  • Net interest income increased by 24.9% as a result of a broad-based expansion of the Group’s interest-earning assets, both in rupee and foreign currency, and improved margins. While our international operations continued to be positively impacted by high interest rates, interest margins locally also improved amidst higher yields on rupee-denominated investment securities. 
  • Net fees and commission income rose by 10.7% on account of higher revenues from trade financing, payments and wealth management services. 
  • Other income was up by 17.9% driven by enhanced profits from dealing in foreign currencies and fair value gains on equity financial instruments. 
  • The continued investment in human capital and technology and the provisions made in respect of the planned introduction of the Deposit Insurance Scheme in Mauritius contributed to a 21.4% increase in non-interest expenses. The Group’s cost-to-income ratio stood at 35.9% for the nine months ended March 2024 compared to 35.7% in the corresponding period last year. 
  • Impairment charges increased by 10.3% to Rs 2,741 million, resulting in an annualised cost of risk of 82 basis points. 
  • The share of profit of associates dropped by Rs 205 million due to the subdued performance of BFCOI and Société Générale Moçambique in particular.
  • Of note, the Group exercised its tag along right to dispose of its 35% stake in Société Générale Moçambique S.A. alongside Société Générale S.A. to Vista Group Holdings S.A. and signed a Share Purchase Agreement on 10th of May 2024 to this effect. The latter is subject to the fulfilment of a number of conditions precedent. 
  • The tax charge for the period increased by 48.9% on a year-on year basis due to higher profits and the recent changes in the Mauritian tax laws. 
  • Profit attributable to ordinary shareholders for the nine months ended March 2024 went up by 14.6% to Rs 12,351 million, with the share of MCB Ltd’s foreign-sourced income standing at some 68% thereof.
  • Shareholders’ funds grew by 14.4% on year-on-year basis to Rs 101.5 billion due to the rise in retained earnings, the issuance of new ordinary shares under the Group’s scrip dividend scheme and the conversion of preference shares. Overall, the BIS and Tier 1 ratios stood at 21.1% and 18.6% respectively, well above regulatory limits. 


The global economy has continued to be resilient amidst the ongoing difficult challenges. Despite a slow decline in inflation, it still exceeds targets in many countries in a context of heightened geopolitical tensions, which are impacting commodity prices. Consequently, interest rates are likely to remain high for longer than previously anticipated. In Africa, conditions are improving gradually but several economies face multiple challenges, including currency pressures and a heavy debt burden. In Mauritius, the economy is set to pursue its expansion in 2024, supported by a robust performance in the tourism, financial services and construction sectors. Despite the unsteady global environment, the Group’s financial performance is expected to maintain its current robust trend for the balance of the current financial year.

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