MCB Group Annual Report 2025

FY 2024/25 highlights

The year in review from a risk perspective

The environment in which we operate remained complex and volatile, with persistent headwinds influencing our operations, though the relative easing in monetary policy provided some relief to global financial conditions. In this uncertain context, our overall risk profile stayed within the established limits of our risk appetite, underpinned by robust and proactive risk management practices across the Group. We continued to actively identify and assess risks from both external and internal sources, enabling us to address potential threats and capture opportunities. In this regard, we updated our Enterprise Risk Heat Map to reflect the unfolding risk landscape and prioritise risks that could materially affect our operations, financial performance, solvency, or strategic direction.

During the year, significant progress was made in enhancing the Group's risk management framework. A key focus was laid on operationalising Group-level risk oversight to drive greater consistency in standards and practices across all subsidiaries. Country risk management was further strengthened through targeted visits led by our newly appointed Senior Country Risk Officer, who brings deep African expertise. Recognising the growing complexity and scale of financial market activities, we formalised, at the level of MCB Ltd, a Board-level risk appetite for Market Risk and Asset and Liability Management (ALM), previously set and overseen by ALCO, to enhance strategic governance. The Group further embedded a strong risk culture across the organisation through awareness sessions, training courses and social engineering exercises. We also reinforced risk function capabilities as gauged by the successful completion of the Risk Academy pilot phase and launched a focused Employee Value Proposition to support retention and development.

The most prominent external influences impacting our risk landscape in FY 2024/25 were related to challenging geopolitical and macroeconomic conditions, heightened regulatory and fiscal requirements, rising climate, environmental and social considerations, rapid technological change and evolving cybersecurity threats, shifts in workplace dynamics and employee engagement, and the need to enhance customer experience in a competitive landscape. A description of these factors and our response thereto is provided on pages 36 to 40. To ensure appropriate coverage, we have defined the following key risks that impact our business, with the list pertaining only to major risks and thus not exhaustive.

Our key risks