MCB Group, Mauritius’ largest banking group, delivered a stronger financial performance in the year ended June 30, 2026, as higher operating income, improved credit quality and stronger associate earnings lifted profit despite increased costs and a higher tax burden.

The group reported profit attributable to ordinary shareholders of MUR20.11 billion ($422.43 million) in its full year 2026, marking an 11.3% increase from the prior year’s profit. Profit before tax rose 20.3% to MUR27.6 billion($579.84 million), while the effective tax rate increased to 26.4% from 21.5% following new fiscal measures introduced in Mauritius.

MCB Group grows operating income across key markets

Net banking income increased 11.6% to MUR47.05 billion ($988.39 million), supported by growth across both of the group’s strategic pillars. Operating income from Home Markets rose 15.8% to MUR22.13 billion ($464.89 million, driven by growth in individual corporate banking.

The African Corporate Investment Banking and Private Banking segment increased operating income by 10.8%to MUR24.92 billion ($523.43 million), supported by the continued development of its structured finance franchise and expansion across key African markets.

Net interest income increased 11.7% to MUR30.23 billion ($635.04 million), as growth in interest-earning assets offset lower net interest margins.

Non-interest income strengthens earnings

Non-interest income rose 11.4% to MUR16.82 billion ($353.36 million), reflecting the group’s strategy of expanding fee-based and other non-funded income.

Net fee and commission income increased 4.8%, supported by payments and wealth management activities, while trading income jumped 33.3% on higher foreign exchange and fixed-income transaction volumes.

Other operating income also increased by MUR403 million ($8.47 million), helped by gains from the sale of financial instruments.

The gains were partly offset by MUR306 million ($6.43 million) in fair-value losses on equity financial instruments linked to the MCB Equity Fund.

Technology and expansion push costs higher

Non-interest expenses increased 13.8% to MUR17.93 billion ($376.68 million), reflecting continued investment in technology, staffing and regional expansion.

Staff costs rose 13.1% amid higher headcount and salary adjustments, while IT costs increased 19.2% due to technology investments, cloud infrastructure, cybersecurity and artificial intelligence initiatives.

Higher Deposit Insurance Scheme premiums and legal and professional fees also contributed to the increase, pushing the cost-to-income ratio to 38.1% from 37.35%.

Credit quality improves as MCB expands across Africa

Impairment charges declined 33.5%, supported by strong recoveries during the first half of FY2026. The group’s cost of risk consequently improved to 0.39% from 0.74% a year earlier.

MCB Group’s share of profit from associates increased sharply to MUR798 million ($16.77 million) from MUR34 million ($714, 306), driven by stronger performance from BFCOI and an improvement in Promotion and Development Ltd.

The group’s foreign-sourced income accounted for approximately 56% of MCB Ltd’s profit attributable to shareholders, highlighting the contribution of its international operations.

MCB Group ended FY2026 with a Capital Adequacy Ratio of 20.3% and a Tier 1 ratio of 18.1%, remaining above regulatory requirements despite balance-sheet growth.

The group declared a final dividend of Rs16.50 per share, following an interim dividend of MUR11 ($0.23) per share paid in July 2026.

Looking ahead, MCB Group said it will continue investing in technology, sustainable finance and its African franchise while supporting clients and pursuing opportunities across energy, infrastructure, intra-African trade and regional integration.