Port-Louis, November 12: The Mauritius Commercial Bank (MCB) has witnessed a 14.6 percent rise in pre-tax profit, reaching Rs 6.9 billion for the first semester of the financial year, compared to the corresponding period last year, driven by a rise in net banking income and a decline in the cost of risks.
Despite the improvement in operating performance, the net increase in profit attributed to ordinary shareholders decreased by 2.6 percent compared to the previous quarter, reaching Rs 4.9 billion, impacted by a rise in fiscal charges. The effective tax rate stood at 27.4 percent in relation to 19 percent in the first semester of the previous year, on account of new fiscal measures recently implemented, the MCB group mentioned in a press release.
The Group’s operating income increased by 9.2 percent with an improvement in its core earnings across all the operating clusters to reach Rs 11.4 billion, while net interest income rose by 4.6 percent, driven by the growth in interest-earning assets despite a slight fall in interest margin, while non-interest income grew by 17.8 percent. The group has also maintained a strong financial position with an equity ratio of 21.5 percent, well above the regulatory requirements.
Outlook and Challenges
The global economy remains resilient amidst reduced tariff volatility. However, the overall economic environment continues to remain uncertain, with prolonged geopolitical tensions and fiscal vulnerabilities weighing on activity levels. The Group is expected to feel the impact of further anticipated cuts in US interest rates and will continue to face the higher tax burden on banks in Mauritius.
Set against this backdrop, the Group remains focused on its objectives and on a disciplined execution of its strategy. We will continue to strive to deliver superior returns to our shareholders and create lasting value to our clients, employees, and the communities we serve as a whole.
