MCB Group’s nine-month profit hits $314 million amid tax surge

Mauritius-based financial powerhouse MCB Group reported a profit of MUR14.76 billion ($313.84 million) for the nine months ended March 2026, as strong operating performance and lower credit losses were partly offset by a sharp rise in taxation.

The Mauritian banking group delivered a resilient performance despite global economic uncertainty and geopolitical tensions, with profit before tax rising 13% to MUR20.38 billion ($432.2 million).

Strong operating momentum

According to its latest financial release, the Mauritius lender recorded 2.5% increase in profit, climbing to MUR14.76 billion ($313.84 million) from MUR14.4 billion ($312 million) the previous year.

Growth was supported by an 8.3% increase in operating income, reflecting expansion across core business lines, while net interest income climbed 7.6% on the back of growth in interest-earning assets.

Non-interest revenue showed mixed performance. Net fee and commission income edged up 1.6%, supported by higher payments, wealth management, and loan-related fees, although weaker trade finance activity weighed on growth.

Trading income surged 43.7%, driven by increased foreign exchange transactions with both domestic and international clients, alongside stronger fixed-income trading performance.

Costs and taxes weigh on bottom line

Operating expenses rose 17.9%, largely due to higher staff costs, increased investment in technology, and higher contributions to Mauritius’ deposit insurance scheme. As a result, the group’s cost-to-income ratio climbed to 39% from 35.8% a year earlier.

A sharp 51% increase in tax charges, following new fiscal measures introduced in Mauritius, pushed the effective tax rate to 27%, up from 20.2% in the prior period, limiting growth in net profit to 2.8%.

Improving asset quality

The group’s risk profile strengthened during the period, with impairment charges dropping 56.1% to MUR1.07 billion ($22.7 million), supported by recoveries. This led to a decline in the cost of risk to 0.24%, while the gross non-performing loan ratio improved to 2% as of March 2026.

Dividend and strategic outlook

Founded in 1838 as a single banking unit, MCB Group has expanded into a major financial services holding with approximately 4,900 employees across more than 50 countries. Its operations are organized into three business clusters, banking, non-banking financial services, and other investments, spanning markets in Madagascar, Seychelles, Maldives, France, Reunion Island, Mayotte, South Africa, Nigeria, Kenya, and the United Arab Emirates. Correspondent banking relationships further support its international reach.

MCB declared an interim dividend of MUR11 per share, up from MUR10.50 a year earlier, reflecting confidence in its earnings resilience and balance sheet strength. Foreign operations remained a key earnings driver, accounting for 59% of total profits, underscoring the group’s growing international footprint in line with its Vision 2030 strategy.

Despite uncertainties linked to ongoing tensions in the Middle East, the group said it remains well-positioned to sustain growth, supported by strong capital levels, improving asset quality, and continued momentum across its markets.