Profits of Rs 16 billion for Financial Year 2023/24

The Group delivered a strong performance for FY 2023/24 with profit attributable to ordinary shareholders increasing by 13.5% to Rs 16,045 million, with the share of MCB Ltd’s foreign-sourced income standing at some 60% thereof.

Operating income grew by 16.0% to Rs 36,893 million, driven by enhanced performance in the banking cluster amidst the high interest rate environment.

Net interest income increased by 22.5% as a result of the continued expansion of our interest-earning assets and improved foreign currency margins linked mainly to high USD interest rates. On the other hand, margins on Mauritian rupee-denominated assets dropped slightly.

Net fee and commission income rose by 11.3% primarily due to the higher revenues generated in trade finance and payments activities within the banking cluster.

Net trading income went up by 14.9% as a result of higher profits from dealings in foreign currencies on the back of increased business activities. Other revenues declined due to lower net fair value gains on equity financial instruments as well as a one-off loss of Rs 241 million arising from the disposal of the Group’s stake in Société Générale Moҫambique S.A.

 Commenting on the results, Jean Michel NG TSEUNG (Group Chief Executive - MCB Group Ltd) said: “The successful implementation of our strategy enabled us to sustain a robust financial performance this year. Growth in income was sup-ported by our continuously improved domestic offering and further expansion of our foreign-sourced activities, the latter in particular making a strong contribution to Group profits.

Our results also reflect the strength of our business model and risk management framework which led to improvements in asset quality, a reinforced capital position, and a healthy liquidity and funding profile. Our sound fundamentals allowed us to increase our dividend payout to Rs 23.00 for FY 2023/24, thereby delivering on our commitment to provide improving returns to our shareholders.

Our success however goes beyond just financial returns. Guided by our purpose, we remained committed to making a positive impact on our stakeholders. We have strived to support our clients in attaining their goals through tailored solutions and continued to invest in digital solutions to enhance customer experience. I am also pleased with our efforts in supporting local economies, promoting entrepreneurship and actively contributing to the green transition through our sustainability initiatives. I am profoundly grateful to our people for their contribution to our success and we are continuously seeking to promote a workplace where everyone can succeed and grow.”