Operating income grew by 8.3% to Rs 10.6 billion, driven mainly by a rise of 9.8% in net interest income and of 19.8% in profit on exchange. Net fee and commission income remained at similar level to that achieved in the corresponding period last year, with the anticipated decrease in contribution from regional trade finance being compensated by improved performance from other revenue segments.

Growth in operating expenses was contained to 4.6%, leading to a further drop in the cost to income ratio to 41.0%. Allowance for credit impairment rose by 6.6% to Rs 724 million, representing an annualised rate of 56 basis points of the gross loans portfolio, in line with the annualised rate experienced for the first semester of the current financial year.

Share of profit of associates more than doubled to Rs 462 million on account of improved performance at the level of BFCOI and contribution from PAD Group reaching Rs 177 million as a result of a major disposal of investment.

In the current context of low credit expansion our Group capital adequacy ratio improved further to 17.6%, of which 15.0% in terms of Tier 1.

On current trends, MCB Group results for the financial year to June 2016 are expected to achieve a satisfactory growth compared to the last financial year.

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