The MCB Group has reported a strong financial performance for the nine-month period ending on 31 March 2023, with group profits attributable to ordinary shareholders increasing by 49.2% to Rs 10.77 billion. The share of foreign-sourced income accounts for approximately 66% of group profits.
Operating income rose by 28.2% to Rs 23.05 billion, with an improved performance across business segments.
The growth in net interest income was driven by the increase in interest rates and improved margins on interest-earning assets in foreign currency, as well as an expansion in foreign loan book and investment securities portfolio.
However, the MCB reported that interest margins on MUR investment securities declined due to successive increases in the cost of its deposits.
Net fee and commission income grew by 12.5% to Rs 4.9 billion, supported by continued growth in regional trade financing and payment activities in the banking cluster. The Group’s other income rose by 55.8%, primarily due to higher profits from dealing in foreign currencies and fair value gains on equity financial instruments.
The Group continued to invest significantly in human capital and technology, leading to a rise in operating expenses of 19.5% to Rs 8,203 million.
However, the cost-to-income ratio dropped to 35.6% compared to 38.2% for the corresponding period last year.
Impairment charges fell by 13.1% to Rs 2,486 million, with a gross NPL ratio remaining relatively stable at 3.6%.
The share of profit of associates increased by Rs 36 million due to improved results at the level of BFCOI and Société Générale Moçambique.
The Group remains well-capitalized, with a capital adequacy ratio of 20.0%, of which 17.4% is in the form of Tier 1 capital.
It has also maintained a healthy level of liquidity positions, with a total loans to deposits ratio of 62.2% and a total loans to funding base ratio of 53.1% when including borrowings.
Source: MCB
