- The MCB Group has seen a strong financial performance, with profits attributable to ordinary shareholders increasing by 46.7% to Rs 14,133 million in the year ending June 2023.
- Operating income grew by 33.3% to Rs 31,792 million, and net interest income rose by 30.3% due to increased interest rates and expanded foreign loan book and investment securities portfolio.
- However, interest margins on assets denominated in rupees dropped slightly.
- Non-interest income saw a significant increase of 38.7% to Rs 12,002 million, driven by higher revenue from trade financing and payment activities, as well as profits from foreign currency dealings and fair value gains from equity financial instruments.
- Operating expenses increased by 23.3%, reflecting investments in human capital and technology.
- Despite increased expenditure, the cost-to-income ratio improved to 35.4%, compared to 38.3% for the same period year earlier.
- Impairment charges rose by 4.7% to Rs 3,644 million due to an increase in the specific provision coverage.
- The share of profit of associates grew by 8.5% due to improved performance of BFCOI.
- The Group demonstrated financial soundness with a decrease in the gross NPL ratio to 3.2%.
- The Group remains well-capitalised with CAR and Tier 1 ratios of 19.2% and 16.7% respectively.
- Despite a volatile global economic environment and persistent inflation, the Group is optimistic due to encouraging momentum in tourism.
- The Group intends to continue monitoring challenging contexts while implementing strategic initiatives and improving internal capabilities.
About MCB Group Limited (MCBG.mu)
MCB Group Limited is a financial holdings company that, together with the several subsidiaries running under it, operates in three clusters; banking, non-banking financial and other investments. The non-banking financial sector is involved in factoring and leasing while the MCB Capital Markets Limited offers services such as corporate finance advisory, asset management, stockbroking, private equity and registry. The Group also assists micro and small entrepreneurs. The services offered by the company include, offers current, savings, and foreign currency accounts; fixed and term deposits; personal, educational, motor, green, and housing loans; term loans; and working capital finance, term funding¸ structured finance, private equity finance, and leasing services, as well as credit and prepaid cards.
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