Chairperson’s statement

“True business success comes not just from strategy, but from the collective strength of our teams, united by shared values, guided by humility and integrity…”

I am deeply honoured to serve as Chairperson of the MCB Group and would like to sincerely thank you and my fellow directors for the trust and confidence you have placed in me. My gratitude goes to my predecessor, Mr. Didier Harel, whose thoughtful leadership, vision and steadfast support have been instrumental in reshaping our Group into the strong, dynamic organisation it is today. I would also like to thank my fellow executive and non-executive directors for their immense contribution to the Board. On their behalf, I warmly welcome Anna Margaretha Roets, our newest member of the Board who brings valuable insights into banking and risks.

Strong performance and resilience

I am pleased to report that the Group delivered a strong financial performance in FY 2024/25, with operating income increasing by 13.9% to Rs 42.2 billion. Profit attributable to ordinary shareholders rose by 12.6% to Rs 18.1 billion, resulting in a return on equity of 16.4%. Our balance sheet remains robust, supported by strong capital adequacy, which provides us with the flexibility to invest in long-term growth while safeguarding the interests of our stakeholders. Considering this performance, we are pleased to propose a dividend increase of 10.9% to our shareholders. MCB’s commitment to excellence continues to be recognised on the global stage, with prestigious accolades awarded by leading international institutions. A defining moment was our recognition as African Bank of the Year by The Banker, a landmark achievement for a Mauritian institution. This award is testament to all the hard work, dedication and commitment of our leaders and employees. It was achieved amidst economic uncertainties, geopolitical tensions and environmental-related disruptions, affecting both our home and international markets. Beyond this commendable performance, this past period has been one of strategic consolidation and transformation, laying a solid foundation for the development and implementation of Vision 2030.

“From the project’s inception, the executive leadership team presented Vision 2030 to the Board, fostering open, transparent and constructive dialogue.

Elevating governance, empowering people and driving sustainable impact

Over the past year, the Board has continued to elevate its corporate governance standards and practices, reinforce strategic alignment and deepen its commitment to people and sustainability, laying a solid foundation for the successful implementation of Vision 2030.

Strategic oversight and engagement:
Vision 2030 has served as a powerful catalyst in numerous ways. From the project’s inception, the executive leadership team presented Vision 2030 to the Board, fostering open, transparent and constructive dialogue. This collaborative approach enabled directors to rigorously challenge and refine key aspects of Vision, leading to its final approval for implementation.

Investing in people and purpose:
Significant investments have been made to strengthen people management, foster collaboration and promote employee well-being. Encouraging results across key indicators spanning employee engagement, societal contribution, and customer satisfaction, underscore the value of these efforts and justify further investment in these critical areas.

Strengthening risk management and compliance:
In response to evolving regulations, particularly in areas such as anti-money laundering and cyber security, the Group has significantly reinforced its risk management, compliance and internal audit functions - driven by strong leadership and a shared commitment to safeguarding the interests of the Group’s stakeholders. Further, the well-structured and insightful discussions around the Group’s risk appetite improved the board’s decision-making process, ensuring alignment with strategic priorities and regulatory expectations. Our training programs have been expanded to deepen our awareness of geopolitical, cyber and sustainability-related challenges, while also reinforcing our commitment to protect our brand and ethical leadership.

Driving sustainability and impact:
The Group has upheld its long-standing commitment to environmental and social responsibility while exploring related business opportunities. MCB continues to support initiatives that have a positive environmental and social impact in communities, ranging from plastic and waste reduction, biodiversity conservation, education, sports, entrepreneurship and staff volunteering. Flagship initiatives such as ‘Deba Klima’ or ‘Lokal is Beautiful’ have become household names, reflecting the resonance of these efforts within the community. Recently, Private Wealth Management launched a sustainable investing framework for international portfolios, thereby supporting clients to align their investments with their sustainability goals. A full-fledged Sustainability Report is available, providing detailed information alongside key highlights of actions and achievements made during the year.

Strategy and vision

Vision 2030 is a forward-looking roadmap to develop business in markets where the Group has a footprint. Our vision of success is “To be the leading Banking Group in our home markets, and a top-tier African Corporate and Investment Bank and Private Banking institution, recognised for excellence and innovation”. I believe that true business success comes not just from strategy, but from the collective strength of our teams, united by shared values, guided by humility and integrity, and committed to delivering on our Purpose.

Executing our strategy

Looking ahead, the Board remains fully committed to monitoring and supporting the effective execution of our strategic plan, ensuring that we remain aligned with our long-term objectives. We must not only be relentlessly prepared to navigate ongoing economic (e.g. higher taxation, interest volatility) and geopolitical challenges but also remain agile in an age of rapid technological change. Digital transformation is no longer a choice but a necessity. The adoption of artificial intelligence (AI) is inevitable. Experts agree that AI is reshaping industries, a reality underscored by the massive investments made by the world`s leading technology companies. For our Group, this represents both a challenge, and an opportunity to harness innovation, to deliver greater efficiency, stronger risk management and enhanced customer experience. The pace of adoption will advance as we build the right technical capabilities, validate proof of concept, strengthen cybersecurity framework and operate within a forward-looking regulatory framework

“Digital transformation is no longer a choice but a necessity.”

Outlook

While the external environment continues to be unpredictable, I believe in the strength of our strategy, the resilience of our business model, and the dedication of our people. By embracing innovation with discipline and purpose, we will ensure that the Group stays ahead of the competition, relevant, and resilient in the years ahead. The Group is well positioned to deliver more value to our shareholders, our clients, our people and communities in the long term.

Acknowledgements

As we celebrate MCB’s 187th anniversary, I am honored and proud to be a link to a long chain of chairpersons who have all contributed to make our Group one of the most reputable brands in the markets it operates. On behalf of the Board, I extend my gratitude to our employees for their commitment, to our clients for their trust, and to you, our shareholders, for your continued support.

Sincerely yours,

JAY NIRSIMLOO

Chairperson