MCB Group Annual Report 2024
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Financial highlights
Financial Performance
Net profit
Rs 16,045 m
+13.5%
Total assets
Rs 937 bn
+12.9%
Shareholder value
Earnings per share
Rs 63.65
+10.4%
Dividend per share
Rs 23.00
+13.6%
Market positioning
Customer loans
Rs 418 bn
+13.6%
Customer deposits
Rs 672 bn
+14.5%
Efficiency & return ratios
Cost to income
36.5%
+110 bp
Return on equity
16.6%
-23 bp
Asset quality & capitalisation
Gross NPL ratio
3.1%
-21 bp
Capital adequacy ratio
20.5%
+129 bp
Non-financial highlights
Employees
~ 4,400
Workforce
34%
Women at middle and senior management level*
~ 92%
Employee retention rate
Customers
1,243,100
Overall customer base
~ 1,183,900
Individual customers
~ 59,200
Non-individual customers
25
Net Promoter Score*
80
Customer satisfaction score*
626,556
MCB Juice subscribers
Shareholders and investors
~ Rs 96 billion
Market capitalisation on
Stock Exchange of Mauritius (SEM)
First on the local stock market
Baa3/P-3
Long-term / short-term deposit ratings –
Moody’s Ratings*
Economies, Societies and Communities
Rs 57.4 million
Amount spent by MCB Forward Foundation
~ 4.5%
of the total value added generated in Mauritius*
BBB
MCB Group MSCI ESG Rating
~ 1.5%
of the total value added generated in Seychelles
35%
Cash to digital payment ratio*
~ 12%
of total corporate tax paid in Mauritius*
* Relates to MCB Ltd
Note: Figures are as at 30 June 2024, unless otherwise stated
Reflections from the Chairperson
"As I prepare to hand over the reins, I am reassured by the knowledge that the Group is in capable hands...”
Didier HAREL
Chairperson
Message from the Group Chief Executive
"Our strong performance highlights the effectiveness of our strategy, commitment to digital innovation for enhanced customer experience and the strength of our risk management framework."
Jean Michel NG TSEUNG
Group Chief Executive
Board of Directors and Committees of the Board
Didier HAREL
Chairperson
Independent Non-Executive Director
Jean Michel NG TSEUNG
Group Chief Executive
Executive Director
Karuna BHOOJEDHUR-OBEEGADOO
Independent Non-Executive Director
Constantine CHIKOSI
Independent Non-Executive Director
Jean-Philippe COULIER
Independent Non-Executive Director
Stephen DAVIDSON
Independent Non-Executive Director
Cédric JEANNOT
Independent Non-Executive Director
Georges Michael David LISING
Independent Non-Executive Director
Maya MAKANJEE
Independent Non-Executive Director
Jayananda NIRSIMLOO
Independent Non-Executive Director
San T SINGARAVELLOO
Independent Non-Executive Director
Secretary to the Board:
MCB Group Corporate Services
Changes during the year
Re-elected during the Annual Meeting of Shareholders held in November 2023
- Karuna BHOOJEDHUR-OBEEGADOO
- Jean-Philippe COULIER
- Stephen DAVIDSON
- Didier HAREL
- Michael LISING
Joined the Board
- Maya MAKANJEE (as from November 2023)
Left the Board
- Gilbert GNANY
- Alain REY
Our corporate profile
Who we are
MCB Group is an integrated financial services provider, offering customised products and services to a wide range of clients through its local and overseas subsidiaries and associates.
Credit ratings
Deposit ratings
Relates to MCB Ltd
Issuer rating
Pertains to the servicing of financial obligations in Mauritius
Sustainability highlights
Constituent of and awarded an MSCI ESG rating
Domestic market shares of our main subsidiary, MCB Ltd
of local currency deposits
of domestic credit to the economy
Stock profile
of SEMDEX1
Ordinary shareholders (Individual shareholders account for 45.8% of the ownership base)
Preference shareholders & bondholders
Notes:
Figures are as at 30 June 2024
1excludes foreign currency denominated, GBL and international companies.
Note:
The use by MCB Group of any MSCI ESG research LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of MCB Group by MSCI. MSCI services and data are the property of MSCI or its information providers, and are provided 'as-is' and without warranty. MSCI names and logos are trademarks or service marks of MSCI.
Our value-creating business model
We use our resources and expertise to create and protect value while minimising the risk of value erosion.
Our strategy
Executing our strategic objectives to fulfil our purpose
We recognise the challenges of operating in a volatile environment and remain steadfast in our commitment to making a meaningful and positive impact. To translate this conviction into tangible results, we have anchored our efforts in fulfilling our purpose, Success Beyond Numbers, which serves as the cornerstone of our strategy. This purpose drives us to go beyond financial metrics, focusing on creating lasting value for our stakeholders, fostering innovation, and building resilient communities.
Throughout the year, we continued to make headway on our 3-year rolling plan, strategically positioning ourselves to seize opportunities in an ever-evolving landscape. Guided by our proven business model, our strategy focuses on delivering sustained earnings by becoming more diversified, digital and sustainable. As we continue our efforts to make MCB Group a simpler and more efficient organisation, we are focused on delivering excellent customer service and customised offerings, capitalising on our talented workforce while operating within the precinct of our risk appetite.
Our philosophy
The Board of MCB Group Ltd is committed to applying high standards of corporate governance with a view to fostering the organisation's long-term business sustainability and creating value for all its stakeholders whilst acting for the good of society. The Board provides purpose-driven and ethical leadership by setting the tone from the top in the way that it conducts itself and oversees the management of the Company (refers to MCB Group Ltd on a standalone basis) and of its subsidiaries. It believes that good governance is essential in upholding the Group's values and culture through the promotion of accountability, transparency, effective risk and performance management, robust internal control, responsible stakeholder engagement and ethical behaviour by all employees across the organisation. In view of the fast-changing and increasingly challenging environment, the Board continuously monitors and adapts its governance practices and frameworks to incorporate the implications of major developments, pertaining to, inter alia, the geopolitical and macroeconomic conditions, heightened regulatory demands, climate, environmental and social considerations, cybersecurity and technological disruptions, workplace transformations and employee engagement as well as customer loyalty in a competitive market. MCB Group's strong performance in the 'Corporate Governance Scorecard Assessment' exercise of listed companies conducted by the National Committee on Corporate Governance (NCCG) in 2023 reflects its commitment to the application of the principles set out in the Code. The Group's Corporate Governance Framework is anchored on the four pillars highlighted hereunder.
Strong commitment to ethics and values
- Dedicated Board committee overseeing ethical conduct and sustainability matters across the Group
- Application of the Group ‘Code of Ethics’, approved and monitored by the Board
- Whistleblowing Policy allowing all employees and other stakeholders of the Group to report matters of concern in strict confidentiality
- Establishment of a Gender Equality Charter
Strict compliance to rules and regulations
- Adherence by Group entities to the provisions of legislations, rules and regulations in countries where they operate
- Compliance with the National Code of Corporate Governance for Mauritius (2016)
- Compliance with international reporting standards as applicable
- Adoption of the underlying Basel principles by banking subsidiaries
Robust risk governance and internal control
- Ring-fencing of activities, as gauged by the segregation of banking and non-banking operations
- Board responsible for the oversight and monitoring of risk profile against risk appetite
- Strong and transparent governance framework, based on the 'three lines of defence' model
- Provision of independent assurance by both internal and external auditors
Continuous multi-stakeholder engagement
- Ongoing dialogue with the investment community, regulatory bodies and authorities
- Contribution to economic development by providing adapted financial solutions and support to our customers
- Safeguard of cultural and environmental heritage
- Promotion of community well-being and fostering of staff development and welfare
Risk and capital management report
The year in review from a risk perspective
Notwithstanding gradual improvements witnessed in some areas, the risk landscape remained volatile in FY 2023/24 on account of persistent challenges in our internal and external operating environments with the economic situation in key African markets, for instance, further retaining our attention. Nevertheless, our risk profile stayed within established limits of our risk appetite, thanks to the stringent policies, processes, and proactive risk management practices in place across the Group. We continued to actively identify and assess risks from both external and internal sources, enabling us to address potential threats and unlock opportunities. We accordingly reviewed our Enterprise Risk Heat Map to cater for the dynamic environment and focus on the risks that could have a significant impact on the Group’s operations, financial performance, solvency, or strategic direction. We made further headway in embedding a strong risk culture across the organisation through the implementation of the Risk Culture Programme to guide the right behaviours in the conduct of our operations with key themes emphasised during the year being cyber and physical security amongst others. As a key move to strengthen the risk governance and oversight, the Risk and Compliance functions of MCB Ltd have been elevated at the Group level since August 2023. Subsequently, the latter functions initiated a gap assessment exercise across subsidiaries during the year with the objective of reinforcing and aligning risk management practices within the organisation.
During the year under review, the most prominent external influences impacting our risk landscape related to geopolitical and macroeconomic conditions, heightened regulatory demands, climate, environmental and social considerations, cybersecurity and technological disruptions, workplace transformations and employee engagement as well as customer loyalty in a competitive market. A description of these factors and our response thereto is given on pages 36 to 39. To ensure appropriate coverage, we have defined the following key risks that impact our business, with the list pertaining only to major risks and is thus not exhaustive.
Our key risks
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