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Mauritius’ MCB Group rakes Rs6.7 billion profits in 6 months

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Mauritius' MCB Group rakes Rs6.7 billion profits in 6 months

MCB Group, Mauritius largest banking institution, profits attributable to ordinary shareholders for the semester to 31 December 2022 stood at Rs 6.67 billion (approx. USD144 million), representing an increase of 36% compared to the corresponding period last year.

This performance was attributed to an improvement in its core earnings and a drop in net impairment charges. Contribution from foreign-sourced income stood at above 65% of Group profits. 

Operating income grew by 21.5% to Rs 14.6 billion. Net interest income rose by 21.1% to Rs 9.16 billion, mainly explained by improved margins linked to the rise in interest rates globally and the expansion of its foreign currency loan book while interest margins on local investment securities declined on average.

Net fee and commission income grew by 13.2% to Rs 3.36 billion, backed by higher revenues from payment and regional trade financing activities in the banking cluster.

‘Other income’ rose by 39.3%, mainly due to an increase in profit arising from dealing in foreign currencies and to a higher contribution from MCB Real Assets Ltd. 

Operating expenses increased by 18.9%, while the cost to income ratio improved to 36.9% compared to 37.7% for the corresponding period last year. Impairment charges fell by 10.9% to Rs 1.69 billion. The gross Non-Performing Loan ratio declined to 3.5% from 3.7% in June 2022. 

Its capitalisation level remained comfortable with shareholders’ funds increasing to Rs 84.1 billion, contributing to a capital adequacy ratio of 18.6%, of which 17.2% in the form of Tier 1. 

Source: MCB

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The information and opinions expressed in our published works are those of authors/sources believed to be reliable. NewsMoris makes no representations as to accuracy, completeness, suitability, or validity of any information expressed.