Operating income grew by 4.3% to Rs 5,667 million. Net interest income increased by 6.9% to Rs 3,868 million resulting from an expansion in the loan portfolio, notably linked to the international activities of MCB Ltd, despite a contraction in margins. Lower yields were also recorded in the deployment of our excess liquidity domestically, leading to a drop in revenues from Government securities. Net fee and commission income grew by 24.8% to Rs 1,332 million, driven by higher revenues across banking subsidiaries, with a strong performance recorded from regional trade financing and payments activities. On the other hand, ‘Other income’ declined by 37.3% to Rs 467 million, mainly explained by market volatility giving rise to fair value losses on equity instruments.

 Operating expenses increased by 13.5% to Rs 2,249 million, reflecting continued investments in human capital and technology and the impact of the depreciation of the Rupee on the expenses denominated in foreign currencies. As a result, the cost to income ratio rose to 39.7% compared to 36.5% for the corresponding period last year. Impairment charges fell by Rs 403 million to Rs 826 million due to lower provision for expected credit losses (‘ECL’) during the quarter. The cost of risk, on an annualised basis, stood at 88 basis points of gross loans and advances, compared to 139 basis points in June 2021, while gross NPL ratio declined to 3.4%. 

 

The share of profit of associates rose by Rs 90 million mainly on improved results at the level of BFCOI and Promotion and Development Group. 

Our capitalisation level remains comfortable, with shareholders’ funds increasing to Rs 72.9 billion, contributing to a capital adequacy ratio of 18.4%, of which 17.0% in the form of Tier 1.

 

The exit of Mauritius from the FATF grey list, which should trigger the removal of the country from the EU black list, and the pick-up in tourism amidst the full-fledged reopening of our borders recently are positive developments that should contribute to the domestic economic recovery. However, uncertainties still prevail considering the evolution of the Covid-19 pandemic both locally and globally. Against this backdrop, the Group will continue to closely monitor the evolution of the situation while pursuing the implementation of its strategic objectives.’’