14 FEB 2024

MCB posts profits of Rs 7,8 billion


The Group achieved a solid performance for the half-year ended December 2023 with profits attributable to ordinary shareholders increasing by 16.7% to Rs 7,778 million. This has been driven by an enhanced contribution from our international activities, which continued to benefit from high interest rates.

The key highlights of the semester results are summarised hereunder:

  • Operating income increased by 23.9% to Rs 18,029 million, with:

    • Net interest income growing by 27.6% on the back of an expansion in our interest-earning assets and improved margins particularly on foreign currency assets;

    • Net fee and commission income increasing by 12.2% on account of higher fees from regional trade financing, lending and payments activities in the banking cluster; and

    • Other income up by 26.0% following higher profits from dealing in foreign currencies coupled with gains from equity financial instruments held at fair value.

  • Non-interest expenses rose by 25.5% in line with our continued investment in technology and human capital, the impact of inflation and a provision made for the planned introduction of the Deposit Insurance Scheme in Mauritius.

  • Impairment charges were up by 6.1% to Rs 1,799 million with the cost of risk for the half-year ended December 2023 dropping to 80 basis points, compared to 86 basis points for the same period in the previous year. Gross NPL ratio stood at 3.1%.

  • The share of profit of associates declined by 39.0% to Rs 305 million due to the subdued performance of both BFCOI and Société Générale Mozambique.

  • The tax charge for the period increased by 55.9% to Rs 1,927 million reflecting higher profits and the impact of the recent changes in Mauritian tax laws.

  • The Group capitalisation level strengthened with shareholders’ funds increasing by 14.6% to Rs 96 billion. The BIS and Tier 1 ratios as at December 2023 stood well above minimum regulatory requirements at 20.5% and 17.9% respectively.


Latest observations indicate that the global economy has been more resilient than previously thought with inflation declining steadily and growth holding up. However, the pace of global growth remains slow while risks to supply chains and commodity prices continue to prevail in view of heightened geopolitical tensions. In this context, interest rates are likely to remain at current levels until the second half of 2024.

In the African region, although a gradual improvement in macroeconomic imbalances is foreseen, economic conditions remain challenging in several countries with persistently high cost of living and debt level. Locally, the economy should pursue its expansion, largely driven by the good performance in the tourism, financial services and the ICT sectors. The ongoing volatility on the international front will continue to warrant attention. The Group will consequently continue to closely monitor key developments in the operating environment while consolidating its core business fundamentals and diligently executing its planned international diversification strategy.

The pace of growth of the Group’s net profits is expected to continue to slow down over the next few quarters as net interest margins stabilise in comparison to the corresponding periods of the prior financial year. Despite the above-referred prevailing global uncertainties, the Board remains cautiously confident in the achievement of its expectations regarding the operating performance of the Group for the full year, barring major unforeseen events.

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