MCB Group Posts 5.5% Profit Increase to Rs 10.6 Billion Despite Rising Tax Burden

MCB Group has demonstrated robust financial resilience for the first half of the 2025/26 financial year, reporting a net profit of MUR 10.6 billion—a 5.5% increase year-on-year.

The results, confirmed in an official communique following 14 February’s board meeting, come despite a challenging operational landscape and a significant 54.5% surge in tax expenses.

The group’s effective tax rate jumped to 26.3%, up from 19.7% the previous year, following new budgetary measures.

International Growth and Operational Strength

A defining feature of the half-year performance was the dominance of international operations. MCB Ltd’s global activities now account for 58% of the group’s net profit.

Key financial indicators showed steady upward momentum as of 31 December:

• Pre-tax profit: Rose by 15.4%, bolstered by significant improvements in debt recovery.
• Net Banking Income: Increased by 7.7% to reach MUR 23 billion.
• Non-interest Income: Surged by 13.9%, driven by foreign exchange, payments, and wealth management services.
• Net Interest Income: Grew by 4.1%, supported by a expanding balance sheet despite a slight dip in net interest margins.

Strategic Resilience

Jean Michel Ng Tseung, Chief Executive of MCB Group Ltd, noted that the results reflect a “notable progression” in an uncertain climate.

“Despite the increase in tax charges, the Group’s share of net profit continues to grow,” Mr Ng Tseung stated.

“We are observing good momentum in our commercial activities across both domestic and international markets. Our risk profile is also improving, with a decline in bad debts and the cost of risk.”

The Chief Executive further emphasised that solid capital and liquidity ratios are enabling the group to pursue its Vision 2030 objectives and expand responsibly.

Economic Outlook

The group’s internal analysis suggests a resilient global economy with declining inflation, though it remains wary of “tariff disruptions,” geopolitical tensions, and fiscal vulnerabilities.

Looking ahead, MCB expects growth to accelerate in sub-Saharan Africa due to ongoing economic reforms.

While domestic markets are projected to remain steady, the group maintains a “disciplined” approach to its strategy to ensure continued value creation for stakeholders.

Source: Le Mauricien