MCB Group’s profits have increased by 28.9% to reach Rs 3.6 billion for the quarter ending on September 30, 2023. This performance is attributed to the ongoing growth of international activities and persistently high-interest rates.
The net banking income stood at Rs 8.3 billion for the past quarter, representing a 28.4% increase. Net interest income, supported by higher margins on foreign currency assets and an expansion of the foreign currency loan portfolio, has increased by 28.1%.
Non-interest income has grown by 29.1%, primarily due to the growth of regional trade financing, loans, and payment services, as well as an increase in profits related to foreign exchange operations.
The Group’s capitalization level remains well above regulatory standards, with a solvency ratio of 19.7%, of which 17.1% is in the form of Tier 1 capital.
For the upcoming quarters of the current financial year, the Group expects a slowdown in profit growth with a stabilization of net interest margins : “Internationally, the economic context will remain challenging and volatile, especially due to the consequences of the conflict. Inflation is declining but remains above long-term targets. While the tightening phase appears to be ending, interest rates will continue to remain high for longer than anticipated. Regarding Africa, although macroeconomic imbalances are gradually resolving, the economies within it still face various pressures, including exchange rates, debt repayments, and sovereign ratings”.
The banking group further notes, “Regarding the Mauritian economy, it maintains its growth trajectory, propelled by the tourism sector, financial services, and construction. However, it is not impervious to external events.” Despite the prevailing global uncertainties, the board maintains a cautiously optimistic outlook regarding the achievement of the Group’s objectives for the financial year.