Profits of Rs 14.4 billion for 9 months ending 31 March

Commenting on the results, Jean Michel NG TSEUNG (Chief Executive - MCB Group Ltd) said:

“We reported another quarter of good results with profits attributable to ordinary shareholders increasing by 16.2% to Rs 14.4 billion for the nine months ended March 2025, corresponding to a ROE of 17.4%. Our performance reflects our ongoing business growth both locally and in markets where we operate. Our risk metrics remain sound with a stable NPL ratio, declining cost of risk and high capital buffers. The Group’s solid fundamentals as well as the strong set of results for the period have allowed us to declare an interim dividend of Rs 10.50 per share (Rs 9.50 in 2024).”

Financial Performance

· Operating income grew by 13.4%, driven by the growth of domestic and foreign banking activities.

· Net interest income increased by 13.1%, driven primarily by a year-on-year growth in interest earning assets. In Mauritius, the deployment of excess liquidity at higher yields as well as higher loan volumes contributed to the increase in rupee denominated net interest income. Foreign currency net interest income increased mainly on account of the growth in

loans and liquid assets, but margins were lower as a result of lower yields on cash balances and a higher proportion of term deposits in the Group’s funding mix.

· Net fee and commission income rose by 17.1% resulting from higher arrangement fees and increased revenue from payments, trade finance and wealth management activites.

· ‘Other income’ grew by 10.2%, reflecting higher volume of foreign currency transactions. A drop in fair value gains on equity financial instruments was recorded for the period compared to last year. Fair value gains on Visa and Mastercard shares are now being recognised in Other Comprehensive Income, following the acquisition of these shares, previously held by MCB Ltd, by MCB Group Ltd in November 2024.

· Non-interest expense went up by 13.0% in line with the continued investment in human capital linked to the growth of the Group’s business activites, salary increases and investment in technology.

· The Group’s impairment charge declined by 11.0%, corresponding to an annualised cost of risk of 63 basis points. This was achieved through a drop in specific provisions and

successful recoveries made during the first nine months of the financial year.

· Share of profit of associates declined by 37.1% to Rs 251 million, reflecting lower contributions from BFCOI and Promotion and Development Group.

· The tax charge for the period increased by 19.4% in line with the growth in profits and the impact of the Corporate Climate Responsibility Levy in Mauritius.

· Profit attributable to ordinary shareholders increased by 16.2% to Rs 14,350 million compared to the corresponding period last year, with the contribution from foreign-sourced activities MCB Ltd standing at 63%.

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