Africa-Press – Mauritius. MCB Group delivered a resilient performance in the first half of fiscal year 2025/26, despite a challenging operating environment, according to an official statement released following yesterday’s Board of Directors meeting. Pre-tax profit rose by 15.4% year-on-year, supported by a significant improvement in loan recoveries.
Despite a 54.5% increase in income tax expenses—reaching Rs 3.8 billion and reflecting a higher effective tax rate of 26.3% compared to 19.7% last year, following budgetary measures introduced at the start of the fiscal year—net profit attributable to the group grew by 5.5% to Rs 10.6 billion. Notably, 58% of the group’s net profit was generated by MCB Ltd’s international operations.
Commenting on the situation as of December 31, Jean Michel Ng Tseung, Chief Executive of MCB Group Ltd, highlighted: “Pre-tax profit recorded a notable increase despite a difficult and uncertain environment. Despite higher tax charges, the group’s net profit continues to grow, reflecting MCB Group’s resilience. We are observing strong momentum in our commercial activities across both domestic and international markets, which supports balance sheet growth. Our risk profile is also improving, with a decline in non-performing loans and cost of risk. Strong capital and liquidity ratios further reinforce the Group’s capacity to expand responsibly and achieve the objectives of Vision 2030.”
At the end of this six-month period, net banking income increased by 7.7% to Rs 23 billion. Net interest income rose by 4.1%, driven by balance sheet growth, despite a slight contraction in net interest margin. Non-interest income, meanwhile, grew by 13.9%, fueled by stronger performance in foreign exchange, payments, and wealth management activities.
The Group maintains a robust financial position, underpinned by a significantly improved non-performing loan ratio and cost of risk, as well as capital and liquidity ratios well above regulatory requirements.
Furthermore, MCB Group’s analysis notes that the global economy continues to demonstrate resilience despite tariff-related disruptions, while inflation remains on a downward trend. However, persistent uncertainty surrounding economic policies, geopolitical tensions, and fiscal vulnerabilities remains a source of concern. Growth is expected to accelerate in Sub-Saharan Africa, supported by reform efforts in several key economies, while activity in domestic markets is projected to remain resilient. In this challenging context, the Group remains disciplined in executing its strategy and committed to continuing to create value for all its stakeholders.
