The MCB Group’s profits increased by 28.9% to reach Rs 3.6 billion for the quarter ending on September 30, 2023. This strong performance can be attributed to the ongoing growth of international activities and the sustained high interest rates.
The net banking income stands 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, increased by 28.1%.
Non-interest income grew by 29.1%, primarily driven by the growth of regional trade financing activities, loans, and payment services, as well as an increase in profits related to currency 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.
Outlook
For the upcoming quarters of the current fiscal year, the Group anticipates a slowdown in profit growth with the stabilization of net interest margins. On the international front, the economic environment is expected to remain challenging and volatile, mainly due to the consequences of conflicts. Inflation is declining but remains above long-term targets. While the tightening phase appears to be ending, interest rates are expected to remain high for longer than anticipated. Regarding Africa, although macroeconomic imbalances are gradually improving, the economies within it still face several pressures, including exchange rates, debt repayments, and sovereign ratings.
Meanwhile, the Mauritian economy continues its growth momentum, driven by tourism, the financial services sector, and construction, although it is not immune to external events.
Despite global uncertainties, the Board of Directors remains cautiously optimistic about achieving the Group’s objectives for the fiscal year.
